How Much To Spend on Gifts: Finding the Right Amount | Truist (2024)

FAQs

How much should you spend on gifts? ›

The rule is to spend no more than 1.5% of your gross annual income on presents, but only if you will not incur debt doing so. A smart way to avoid debt is to automatically sweep a certain amount of dollars from your bank account to a "holiday account” every month.

But if it's a birthday gift for a close friend or family member—or for a milestone birthday, like turning 18 or 75—it's not uncommon to spend in the $50 to $100 range.

Determining the appropriate amount of money for the guest of honor relates to how close your relationship is with them. The following cash amounts are generally acceptable: $20 to $25 for a co-worker or acquaintance, $50 for a close friend and upwards of $100 for a family member.

Here is how much is being spent on holiday gifts

The average American consumer plans to spend $654 on gifts alone, according to this year's holiday spending survey from The Conference Board.

According to the National Retail Federation (NRF), the average American plans to spend $826 in 2022 on Christmas gifts, food, and decorations. Of that $826 dollars, around 500 are spent on gifts for family members. The most popular of these gifts are clothing, toys, and gift cards.

Fifty dollars goes a long way, and you can use it for the kinds of stores suitable for multiple purchases, like some of the other options on this list. If, for instance, your friend loves to go to Starbucks, spending $50 on a gift card provides them with a lot of value. That's enough about Starbucks.

Based on the survey, it seems $200 is a good ballpark amount to spend on your 12-year-old this Christmas as it falls in line with the spending habits of most Americans.

Budget for at least $100 when it comes to gifts for your own children. For your own child, a $100 budget allows for a great blend of toys, books, and clothing, says Jennifer Porter, a Seattle-based etiquette coach and party planner. When budgeting, don't forget to factor in the cost of a birthday party.

For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100. When you're selecting a gift card for a spouse, parent or someone else who's very special, choose a card worth $75 or more.

Is $1000 a good wedding gift? ›

While the amount you should gift a couple depends on a number of factors, data from The Knot reveals that U.S. wedding guests spend an average of $160 on cash gifts. "It's common to give anywhere from $100 to $1,000. I often see the card box on the gift table oozing with overstuffed envelopes," Burton says.

In 2022, consumers in the United States expected to spend approximately 920 U.S. dollars on Christmas gifts on average. This is a slight decrease compared to the previous year.

Want to know more about the 7 gifts rule? It's where you stick to a budget and buy your loved one (or yourself – no judgement here) a set number of gifts. Each present falls into a different category, and by the 24th; you'll have 7 gifts for them to unwrap.

The most thoughtful gifts are ones that have, well, thought behind them. Thoughts about what brings joy to the recipient, what they want, need, and what they didn't know they couldn't live without until it arrived at their doorstep.

What is the three-gift Christmas rule? It's originally based on the nativity story—and the idea that Jesus received three gifts from the Wise Men on December 25—but modern moms are using it as a way to save money, reduce holiday stress and encourage their kids to be more thoughtful with their Christmas gift asks.

“When it comes to gift-giving, moderation is key,” Joseph adds. “Quality is always better than quantity. Your child doesn't need 20 presents to be happy; a couple of thoughtful, well-chosen gifts will do just fine.”

For example, a recent Gallup poll found that Americans would spend $975 on holiday gifts, up over $100 on last year. Perhaps unsurprisingly, households with children tend to spend more than those without.

They suggest the following breakdown: coworkers or distant relatives should spend 50 to 75 dollars. Friends or relatives, 75 to 100 dollars. For close friends, family members, or if you're in the wedding party, you should spend 100 to 150 dollars—or more.