How much should I spend on a holiday gift for my significant other? This is a question for the ages and one of great concern. Most people are deathly afraid of looking cheap if they spend too little or extravagant if they spend too much.
How much you should spend on a holiday gift for your significant other can vary greatly depending on your circumstances and the nature of your relationship. Here are some factors to consider when setting the right budget so you don’t go broke or broke:
Relationship Stage: Consider how long you’ve been together and the seriousness of your relationship. If you’ve been dating for less than a year, it’s advisable to spend no more than $50. A budget of around $100 is typical for longer relationships. If you are married, $100 is the middle amount, and the top 25% of couples spend $300. Remember these are guidelines. you should not feel obliged to match these amounts if you are under financial pressure.
Personal Budget: Your budget should be aligned with your financial situation. Under no circumstances should you be charged to buy holiday gifts. Nerdwallet Holiday Market Report shows that about half of Americans (52%) incurred credit card debt when they shopped this past holiday season. Among them, nearly a third (31%) have yet to pay off these balances.
The rule is to spend no more than 1.5% of your gross annual income on gifts, but only if you will not be charged for doing this. A smart way to avoid debt is to automatically sweep a certain amount of dollars from your bank account into a “vacation account” each month. That way, you’ll save money all year long and not feel the financial strain that usually comes with the holidays.Gift shopping should never put you under financial pressure.
Set the right expectations: Don’t be afraid to discuss gift expectations with your significant other. Although it may seem awkward, it’s the best way to avoid any misunderstandings and ensure that neither of you overspend. Have a discussion about your financial circumstances and set a budget that is realistic and comfortable for both people.
DIY gifts: If you’re on a tight budget, handmade gifts can have a special meaning and don’t necessarily require extravagant spending. Homemade cookie baskets, flavored olive oil, or making the other person your favorite meal are examples of DIY gifts that won’t charge you. These gifts are usually accepted because you can’t just go out and buy them. It is also the fruit of your labor, which is much more important than a purchased gift.
The gift is not mandatory: If you can’t afford to buy your significant other a gift, that’s perfectly acceptable. There is no shame in this game. If this is the case, have an open and honest conversation with your significant other. Although most people are uncomfortable with this conversation, a good way to start is: “This year, due to x (but you don’t have to give a reason), I’m prioritizing certain financial obligations and therefore, I can’t participate in a giveaway However, I would love to spend quality time together doing the things we both enjoy.”You don’t need to over-explain it, leave it at that and the right partner will appreciate your honesty and want to support you in making smart financial decisions. .
In the end what matters most is the thought and effort you put into choosing a gift that shows your love and appreciation. It’s not about the price but the feeling behind the present. So consider your unique relationship and financial situation to determine the right budget for your Christmas gift.