How to Know How Much to Spend on a Gift

How Much Should You Spend on Gifts? (Photo courtesy of Mrskyce)

Gift giving can be challenging. Besides picking the perfect gift, it’s important to know how much to spend on the gift. Many factors go into determining a good amount for your gift giving budget. Here are some guidelines to help you know how much to spend on a gift.

Determine the Average

Depending on where you live, the social norm for gift spending can vary greatly. In bigger cities the average wedding gift can cost around $100, while it may be perfectly acceptable in smaller cities to spend around $50. Knowing what the typical gift in your area costs will help you know how much to spend.

Follow the Pros’ Advice

When it comes to weddings, The Knot is an expert source. The wedding website suggests coming up with a gift budget for the entire wedding including the engagement, shower and ceremony. Then divide your entire budget for each event, spending 20% on the engagement, 20% on the shower and 60% on the wedding gift. If you’re not invited to one of these events then reallocate your gift budget.

Think About the Relationship

You’re likely to spend more on your spouse than on your boss this Christmas. It’s important to consider your relationship with the person you are buying a gift for when determining what to spend. You may want to spend more on those that are closer to you.

Remember the Past

Is this a person you have bought a gift for in the past? Think about what you’ve spent on gifts before. This is a good indication of what you should continue to spend on similar gifts.

Consider Your Budget

Above all, it’s important to consider your budget. No matter what the event, occasion or relationship, your budget is the most important factor. Determine what amount would be comfortable for you on top of your regular expenses. Stretching yourself too much just to afford a fancy gift will simply add stress to what should be a happy situation.