How much should you spend on a gift?

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According to the gift registry team at Sydney-based department store Peter's of Kensington, there's no hard and fast rule about how much you should spend on a gift.

Ideally a gift should reflect the level of intimacy you share with a person. If you know someone well, a generous gift is fine.

For a casual acquaintance, trim the budget.

If cash is tight, it's possible to "dress up" cheaper gifts with special wrapping. But ultimately your present is supposed to be a gesture - not a trade. So don't feel obliged to compete in terms of money spent.

If your bank account is looking especially lean, try saying in words and cards what you would normally say with gifts.

A few sincere sentiments can carry a lot of clout.

Gift giving in the workplace calls for special care. Common gaffes include offering items that are too expensive, too personal, or failed attempts at humour.

The US-based Emily Post Institute (self-described as an etiquette authority) advises against giving a gift to the boss that's just from you - it could be seen as sucking up to the boss.

Instead, get together with workmates and give a gift from the group. Avoid personal items such as lingerie or perfume.

Gifts such as books, fruit baskets or gift certificates are a much safer option.

Emily Post also advises discretion about gifts to special friends at work - outside the office may be best.

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A former Chartered Accountant, Nicola Field has been a regular contributor to Money for 20 years, and writes on personal finance issues for some of Australia's largest financial institutions. She is the author of Investing in Your Child's Future and Baby or Bust, and has collaborated with Paul Clitheroe on a variety of projects including radio scripts, newspaper columns, and several books.