Gift giving is one of the most thoughtful gestures among various cultures around the world. But not every individual views gifts the same way. Some people rate gifts on their market value, while others focus more on the thought behind the gift. Businesses and families on tight budgets should look at cost-saving strategies that don't offend gift recipients. Here's what recent research says about how to aim for gifts at appropriate and affordable prices.
Be Flexible with a Gift Budget
What may be considered proper etiquette in gift giving simply may not align with everyone's budget. It's important for cost-cutting individuals to look beyond traditions that shape gift giving to ensure they don't run up a big debt, particularly around holidays. The key is to aim for budget flexibility that allows for paying important bills first, such as mortgage or rent and utilities.
The amount of money one spends on acquaintances and coworkers is usually less than what people are willing to spend on close friends and family members. It's usually acceptable to spend $15-30 on acquaintances and coworkers, whereas spending $50-100 is more common for closer relationships.
A recent survey published by The Knot found that $160 is the average amount its readers spend on wedding gifts, whereas the average is $200 on close friends. In another consumer survey by PwC, the findings point to shoppers expecting to spend about $786 for holiday gifts on an annual basis. But everyone has their own unique budget, so it's best to focus on staying within that range rather than choose to run up credit.
Develop a Gift Budget
Be aware that over half of gift recipients forget the presents they collected the previous holiday, according to a 2018 Groupon survey. That should be another signal to stay within a planned budget rather than just go on a shopping spree, hoping it will spread happiness.
Establishing a budget per person is helpful in the sense that it eliminates the problem of mass-spending on expensive gifts. It's advantageous to create a list of recipients first, then assign a budget for each individual. Viewing this list may prompt the gift giver to shorten it to only include the most important people while others can be given hand-written "thank you" notes.
Let People Know Your Gift Budget Limits
Another way to reduce the financial pressure of gift giving is to let all the possible recipients know ahead of time about budget limits. A holiday office party might take the place of sending gifts to each employee as an economical solution. Such a strategy still conveys appreciation to a workforce while lowering expectations in a humble way.
Even in family settings, discussing budget limits before a birthday or the holidays helps ease the stress of gift giving. It lets family members know that if times were better, gifts might be better as well. Another key to reducing financial pressure is to emphasize the value of relationships as more important than gifts.
How to Save on Giving Multiple Gifts
Luckily, there are various acceptable ways to save money on gift giving, especially when it comes to distributing gifts to a long list of recipients. One way is to start with gift cards or credit card points and maximize their opportunities on discounts. Another idea is to give gift cards themselves to recipients, which gives them the freedom to spend how they choose on themselves.
One of the best ways to save money on gifts is to create homemade items such as food or handwritten cards. This idea is particularly practical for classrooms and workforces. Throwing a holiday party that includes lunch or dinner and treats is memorable without overspending.
Another cost-cutting option to consider is donating to a charity supported by others such as family or staff members. But for those who want to get more creative and possibly achieve even more savings, think about a grab-bag selection. Every bag can have different low-priced items in it that are still useful for everyday life. These gifts can be candy, pens, scissors, index cards, playing cards and pocket items.
The main point to remember when combining gift gifting with budget tightening is to reassure recipients that giving is good and it's better to give than to receive. That way the focus is more on the kind act of giving rather than the monetary value of the gift.
