How much should you spend on gifts?

Gifts are a hassle. You don’t want to blow your whole paycheck on gifts, but you also don’t want to come off as a cheapskate.

22:16 31 October 2024

Gifts are a hassle. You don’t want to blow your whole paycheck on gifts, but you also don’t want to come off as a cheapskate. How much should you actually spend? And if you’re on a tight budget, how can you give a thoughtful gift without looking like you're cutting corners? Let’s dive into the world of gift-giving and figure out a balanced approach!

How much should you spend on gifts?

When it comes to budgeting for gifts, there are no hard and fast rules. But there are some basic guidelines that can help you strike the right balance between generosity and practicality.

For your close friends, spending around £20 to £50 is usually a good range. If you’ve been friends forever, you might want to spend a bit more to show your appreciation. But remember, it’s not about the price tag; it’s about the thought behind the gift. Even something small and personal can go a long way.

Gifts for coworkers, or even employees if you’re a boss, can be a bit tricky. You want to be respectful and generous without going overboard. Typically, spending around £15 to £30 per coworker is enough to show you care without making anyone feel uncomfortable. If you're buying for an office party or a Secret Santa, stick to the agreed-upon price range to keep things fair.

For family, it’s more personal, and that usually means the budget goes up. For immediate family members, it’s common to spend anywhere between £50 to £100, depending on the occasion. If you’re feeling generous and it’s a special event like a milestone birthday or holiday, you can go higher. For extended family, however, try to keep it between £20 to £50.

How to divide your budget for gifts?

To avoid breaking the bank during gift-giving seasons, it's smart to allocate a set amount for each category. Here's a simple way to break it down:

• Friends: 25% of your gift budget
• Coworkers/Employees: 15%
• Family: 60%

So, if you’ve got £200 to spend on gifts this holiday season, that means about £50 for your friends, £30 for coworkers, and £120 for your family. Adjust as needed, but this should keep things balanced.

What should you give with a small budget and not look like a cheapskate?

Stressed about gift-giving on a tight budget? Don’t be! You can still give great gifts without spending a fortune. The trick is to get creative and put thought into what you’re giving. Here are a few ideas:

Personalized gift cards: A gift card might sound boring, but not if you make it personal! Personalized gift cards to your friend’s favorite coffee shop or their go-to online store, along with a handwritten note, can show you’ve really thought about what they like. Plus, you can control how much you spend without it feeling cheap.

Homemade gifts can be just as meaningful, if not more so: Bake some cookies, make a photo album, or create a DIY spa kit with homemade scrubs and lotions. It shows that you’ve put in effort, and often that means more than a pricey gift.

Give the gift of a shared experience: Plan a picnic, take someone to a museum (on a free day!), or offer to cook them dinner. These gifts don’t cost much but create lasting memories, which is often more valuable than any physical item.

Give a subscription service: There are tons of affordable subscription services out there for everything from books to coffee to fitness apps. It’s a gift that keeps giving long after the holidays are over, and it shows that you know their interests.

What should you avoid when giving gifts?

Now that you know what to give, let’s talk about what to avoid. Some gifts can send the wrong message, especially in professional settings or with people you're not super close to. For coworkers, it’s important to avoid gifts that are too personal, like clothing, perfume, or anything that could make them uncomfortable. Stick to neutral, universally appreciated gifts like a nice mug, a desk plant, or a coffee gift card.

Avoid giving something that looks cheap or like an afterthought. For instance, grabbing a generic box of chocolates from the store on your way to a party might give the impression that you didn’t care enough to plan ahead. Even if you're on a budget, putting thought into your gift makes all the difference.

Mixing business with gift-giving can be tricky. Avoid giving anything that feels like a sales pitch, like a product from your own business unless you know they really want it. Gifts should feel like gifts, not business possibilities. Keep the relationship professional and thoughtful.

At the end of the day, gift-giving is all about thoughtfulness, not the price tag. Whether you’re splurging or saving, make sure your gifts reflect your relationship with the person. Spend within your means, get creative when necessary, and most importantly, have fun with it! No one remembers how much you spent, but they’ll always remember how you made them feel.