How Much Should I Spend on a Gift?

Do you find yourself constantly in a dilemma when it comes to buying gifts and how much you should spend on said gifts? You’re not alone. Many people struggle with this issue too, because although you don’t want to seem mean or stingy, you don’t want to splurge all your money and be out of pocket financing gifts for the ridiculous number of events you may have to attend in a single year.

The reassuring news is that there are no set guidelines about how much is too much or too little when buying gifts. Not that we were able to find anyway. However, to give you some help in trying to decide on a suitable gift budget, we are going to look at some considerations you should make when faced with occasions where you will be expected to now show up emptied handed.

General Considerations to Make

There are three things that the amount you spend on a gift will depend on – the occasion itself, your budget and the relationship you have with the person receiving the gift.

What is the Occasion and How Important is it?

The amount you spend will probably depend on the type of occasion it is. For instance, if it’s your wedding anniversary, you are likely to spend more on a gift than your nephew’s birthday. Likewise, you are more likely to buy an expensive gift for a couple’s wedding than their house warming, because weddings are generally considered to be once-in-a-lifetime events.

Your Budget

Your budget could easily be translated to ‘what you feel comfortable spending’. This is important to remember, because many people fall into the trap of thinking they have to follow the herd and spend the same as everyone else on gifts.

Your Relationship to the Gift Recipient.

It makes sense really, when you think about it, that your relationship to the recipient will help to determine how much you spend. You probably already do this, even on a subconscious level.

Generally, you would want to allow for more expensive gifts when you are buying them for close family members, friends and of course your other half. While you should aim to spend less on work colleagues and friends of friends that you only see on rare occasions.

When it comes to events like baby showers, new baby gift baskets are perfect for all budgets and regardless of whether you are extremely close to the expectant mother or not.

For a sibling’s wedding though, you could push the boat out more, as it would probably be expected.

So, the general rule of thumb when figuring out how much you should or shouldn’t spend on gifts is that the closer the recipient is to you and the more special the event is, the more you should look to spend. However, it should also be determined by how much you actually feel comfortable spending too.