How much should you spend on gifts?

Have you ever been at a wedding and found yourself whispering to a trusted friend, “How much did you spend on the gift?"

If so, you're not alone. We asked 1,000 people about their gifting habits. According to our 2023 survey, more than half of people consult friends and family on how much to give. And about a third of gifters will research online or on social media for guidance.

You want to commemorate your loved ones' special moments by giving the perfect gift, but you also need to consider your own financial situation. To help you find that sweet spot, here's what our survey unwrapped and some additional tips to consider.

The amount put toward a gift varies from person to person and the celebratory event being commemorated. Sometimes, you want to give a little extra to your loved one. For those instances, we asked people what they give when they want to spend more than usual.

Ahead of everything, you'll want to figure out whether cash or a gift is appropriate for the person and the event you're celebrating. Our survey uncovered that people prefer to receive monetary gifts, like cash or gift cards, for weddings, birthdays and graduations — but would rather have an actual present as a baby shower or housewarming gift. Retirement is the one life event where the majority of people would like to receive a gift card.

Next, it's important to evaluate how close you are to the recipient. Are they someone you're in contact with only through group text or book club? Or is this a person who has shared in your special life moments (think: by your side at your college graduation or the godmother to your first born)?

For many, the closer you are to someone, the larger your cash gift can be (if it works for your financial situation, of course). But if your relationship is less defined, it may be more appropriate to opt for a more conservative amount when gifting.