How Much To Spend On Gifts?

Gift giving can be stressful. Spending too much can put you in financial stress, spending too little may bring about anxiety of disappointing someone. How do you decide what the right amount is to spend on a gift? There is no right answer to this very personal question, however, here are a few things to consider to help make a balanced decision. 

  • Giving gifts is a complex and important part of social interaction that helps to define relationships and strengthen bonds. 
  • Psychologists say it is often the giver, rather than the recipient, who reaps the biggest psychological gains from a gift. 
  • Some people are more price-conscious when it comes to gifts and some people are
  • more concerned with the emotional significance to show value.
  • A 2018 study estimated Americans spend about $13 billion a year on unwanted gifts. 
  • The typical U.S. family spends about 1% of their annual take-home pay on gifts.

“Memories are perhaps the best gifts of all.”   Gloria Gaither