Mark Tilbury, a self-made millionaire who built a multi-million-dollar business from scratch, has launched a scathing critique against gift cards, labelling them as "basically a scam" that consumers should avoid. With more than seven million subscribers on his popular YouTube channel, Tilbury leverages his platform to share wealth-building advice, and his latest target is the ubiquitous gift card.
The Problem with Gift Cards
In a concise video titled 'Why gift cards keep you poor', Tilbury outlines several compelling reasons why these prepaid cards represent poor value. He points out that a significant number of recipients simply forget to use their gift cards, leaving them to expire or gather dust. Even when they are redeemed, many people fail to spend the entire balance, resulting in leftover amounts that are effectively thrown away.
"Gift cards are basically a scam that everyone falls for," Tilbury asserts. "Americans have about $15 billion's worth (approximately £11 billion) of unused gift cards, which means half the people that get a gift card forget to use them."
The 'Breakage' Profit Model
Tilbury explains that retailers and brands benefit financially from this consumer behaviour through a concept known as 'breakage'. This term refers to the profit companies make from gift cards that are never fully redeemed, allowing them to earn money for services or products they never actually provide. It is a built-in inefficiency that Tilbury argues makes gift cards an inferior choice compared to traditional cash gifts.
"And even if they do, most people never spend the full balance and end up throwing it in the trash," he continues. "Brands call this 'breakage', and it's exactly what they want because they can profit from services they never provide."
The Cash Alternative
As a straightforward solution, Tilbury strongly recommends giving cash instead of gift cards. He describes cash as the ultimate flexible gift card, one that can be spent anywhere without restrictions, expiration dates, or the risk of partial loss. This advice aligns with his broader mission to help others achieve financial freedom by making smarter spending and gifting decisions.
"So, remember to use that gift card you have laying around, and always give cash, as it's the gift card you can spend anywhere," Tilbury advises, urging viewers to reconsider their gift-giving habits.
Previous Financial Guidance
This is not the first time Mark Tilbury has shared crucial financial insights with his audience. Back in June 2025, he released a video detailing four essential rules for lottery winners, titled 'You Won the Lottery, Now What?'. In that presentation, he outlined a step-by-step plan to protect a sudden windfall and ensure long-term financial security.
His lottery advice includes:
- Immediately signing the winning ticket to establish ownership.
- Maintaining calm and collecting the prize discreetly to avoid unwanted attention.
- Hiring a specialised lawyer from a major firm experienced in trust and estate planning.
- Investing strategically to make the money last indefinitely, specifically by calculating annual spending needs, multiplying by 25, and investing in the S&P 500 to allow for sustainable four percent annual withdrawals.
Through both his critique of gift cards and his lottery guidance, Tilbury consistently promotes financial literacy and prudent money management, encouraging his followers to think critically about common financial practices and opt for smarter, more effective alternatives.
