Watching a person you care about open a gift from you and light up with joy is one of the best feelings. But getting to that moment isn’t always easy. Spending on gifts can be tough even for the best budgeter.

Maybe finding the right gift for the right price is hard because you’ve gone a little overboard with buying gifts in the past, and it took half the year to pay off the countertop icemakers you bought for your family last holiday season. Or it could be that you were hit with invitations to five weddings, three graduations, and countless birthday dinners over the summer and your bank account is still feeling the pain.

Do you feel like you’re always overspending on gifts? Are you unsure about what’s considered an acceptable amount to spend? Or are you feeling peer or family pressure to spend lavishly? Reground yourself and remember that participating in the ritual of gift giving is more important than the price tag itself.

“Providing material possessions is a way that we show love and care,” says Bright Dickson, happiness expert and co-host of the Money and Mindset podcast. “There’s nothing wrong with that; that’s a part of life. But sometimes, when we feel like we can’t show care in other ways, we might be tempted to show our love through gifts. It’s compensation for time that we haven’t been able to spend.”

So how much do you really need to spend on gifts? These three steps can help you make a gift plan that reflects your individual priorities, set a budget, and keep your spending in check.

There are plenty of customs and etiquette guidelines on gift giving, but those guidelines may not always align with your budget—and that’s OK. Before you get too caught up in what etiquette says you should do, take a look at your checking and savings accounts to determine how much you can comfortably spend on gifts. Check to make sure that whatever you want to spend isn’t cutting into your emergency savings or money you need to cover necessities like your rent or mortgage, utility bills, or car payment.

So, how much is too much to spend on a gift? There generally isn’t a clear-cut answer—but research around gifting trends can help to give you a rough idea of what others may be spending. 

It’s generally considered acceptable to not spend a lot of money on a present for a casual acquaintance or co-worker, or if you’re buying a gift for a birthday party your kid’s attending. But if it’s a birthday gift for a close friend or family member—or for a milestone birthday, like turning 18 or 75—you might want to spend a little more if it fits in your budget. Consider using the averages for Mother’s Day or Father’s Day spending.^{Disclosure 1} (Sorry, dads, you tend to get less than moms.) 

Wedding planning experts say $50 can be an appropriate gift amount for a wedding but that people tend to spend more the closer they are to the couple getting married. A survey from The Knot found that the average amount guests spend on wedding gifts is $150 but that guests spend an average of $160 for close friends.^{Disclosure 2} Don’t feel pressured to buy an expensive item on the registry. You can choose a gift that suits your budget—or look for opportunities to donate an appropriate cash amount to the couple’s honeymoon fund!

For 2025, retail industry numbers project that consumers will spend an average of about $628 on holiday gifts for family and friends.^{Disclosure 1} How much should you spend for each person on your shopping list? That depends—and it’s why you’ll want to create a budget. (See Step 2 for tips on setting up your gift budget.)

Keep in mind that these ballpark numbers are not rules for how much you need to spend—everyone’s situation is different, and what matters most is the thoughtfulness and intent behind your gift. In fact, 43% of people remember gifts longer because of the thoughtfulness, not the financial value.^{Disclosure 3}

You’ve checked your accounts, expenses, and cash flow, so you know how much you have total to spend on gifts annually or in a specific month. Next, divide that number up according to the number of gifts you plan to give and the estimated budget for each. Remember, they don’t all have to be the same amount. What you’ll spend on your co-worker is likely less than what you’ll spend on a family member. For some, you may even consider gifting your time instead of money—like offering to help a grandparent with a project you know they could use a hand with.

Having a firm, gift-by-gift budget in place before you start shopping online or in-person is the most straightforward way to avoid overspending. “You have to say, ‘Look, this is what I’ve got to spend and when it’s done, it’s done,” says Brian Ford, head of financial wellness at Truist and co-host of the Money and Mindset podcast. “My gifts need to fit within this budget because I know that’s what’s right, and I think that’s what [the gift recipients] would want for me as well.”

For the holidays, setting your budget per person may lead you to realize that it needs to be shortened. Don’t feel bad if you need to skip your neighborhood’s Secret Santa this year—or if you buy joint gifts for couples or families instead of individual gifts for each of them. You could also consider opting for a simple but heartfelt handwritten card for some of the people on your list.

Feeling more confident about how much to spend on a gift—but still challenged by your budget? These tips can help you save money when buying gifts for different occasions. 

That way you’re just responsible for buying one gift. As a bonus, you can even choose to set a price limit. 

Handmade ornaments, baked goods, and even handwritten cards can all be memorable and cherished gifts. (Dickson says she made paintings for each of her family members one year.)

Can’t find something good that’s within budget? Consider donating the amount in your budget to a charity you know your gift recipient appreciates. 

Gift recipients will never know how you paid, and your budget won’t take a hit. 

Some winning ideas for non-cash gifts include offering to babysit, take care of pets, clean, do yardwork, run errands, or provide special skills or services like painting or decorating. Gifting your skills could be a great way to try out your ideas for a side hustle, too!

The most important rule when it comes to how much to spend on gifts is to spend within your means. Giving a gift should bring joy—not financial stress. If you budget for your gifts, are open about how much you can spend, and take some of the pressure off yourself, then you can find ways to show others you care without overspending.