How to make the best gifts of the year
It’s never too early to start gift shopping for your loved ones! This simple tip will help you get the perfect gift every time.
What insights do gifts, tips, and teeth give us?
Traditional indicators of the state of the economy may be those of monthly consumer price indexes, interest rates, gasoline prices, etc., but financial services companies have other suggestions. See how much people are spending on gifts, leave it as a hint, what the tooth fairy leaves under the pillow.
And according to a new study of the “rate of progress” of several items by Empower, Americans say inflation and tariffs look like gift prices, and consumer concerns are manifested as “gift fatigue” and “no gift” policies. Even habits and allowances also feel that they will bear the brunt of rising prices.
“Retirement fees track the costs that can be given,” Rebecca Likert, director of consumer insights, told USA Today. “I think there’s really a lot more about economics that we generally frame as etiquette… generosity can be an incredibly powerful economic indicator.”
How much should I give?
The key findings from Empower’s “Going Rate” survey are as follows:
- How much should I give: Half of Americans don’t know what the “right” amount gives, despite 50% of them feeling pressured to spend a certain amount on a gift.
- Gift Flow:75% of respondents said that the gifts are more expensive due to tariffs and inflation. Six in 10 say the gift is “out of hand,” with 48% experiencing “gift fatigue.”
- Rates for gifts: Among the survey participants, the average “driving fee” for birthday presents is $56 for adults and $83 for children. $85 for wedding gifts. $64 for a holiday gift. Mother’s Day gifts cost $55, Father’s Day gifts cost $38, and teacher or coach gifts cost $15.
- For kids: The average weekly allowance is $37 per child, while the tooth fairy leaves $14.87 per child.
- How much do you tilt?: Respondents said they left a ride-sharing service of 16% for take-out dining, 11% for food delivery, 14% for beauty services and 10% for ride-sharing services.
- Give a generation: More than half (55%) believe their generation spends more than others. 79% say cash and gift cards are more acceptable than they have in the past.
- Wedding Etiquette: 49% said they should “pay for the plate” at their wedding.
- Time is money:44% say they want to give a “gift of time” rather than money or material items. And their presence is a real gift.
- Say no to a gift: One third or 33% of respondents say they have adopted a “no gift” policy this year, asking others not to spend any money at all.
Be more thoughtful and pull back holiday spending with small gifts
The Diaz family in Ridgewood, New Jersey has many people on their Christmas gift list.
Julia Diaz, 59, buys around 20 people, including five families, a large family and close friends.
Her daughter, Oriana Diaz, 32, has a gift list of about 30 people on her gift list, including her family, her boyfriend’s family, work mentors and friends.
As prices rise, they are cutting off holiday gifts this year. Julia is planning to spend half of her normal $50 per person.
“Everything is more expensive than last year,” she said.
Oriana plans to purchase smaller handmade gifts.
She considered asking her family and extended family to give “no gifts” this year, but the act of giving each other’s gifts is extremely important to the family.
“We thought about having a conversation that scales it,” Oriana said. Last year she bought a handmade or craftsman gift. She gave colleagues from several pieces fresh bread from her mother’s business, Cecilia’s bread, pairing it with a special olive oil dip. The bread was $15 and the total gift was about $30.
Julia Diaz doesn’t expect her holiday bread baking business to be affected as her price points remain the same and is a popular gift item. Even if the ingredients cost increases, she hasn’t raised the price.
“Go Rate” allows people to peer into their wallets
“The go rate” gives people an idea of what other Americans spend on each other, Likert said.
“People don’t talk about ‘Well, how much did you give?’,” she said.
By offering a “go rate”, people can peer into everyone else’s wallets. Because these are difficult to talk about and have difficulty getting answers,” Likert said.
Betty Lin-Fisher is a consumer reporter for USA Today. Contact her at blinfisher @usatoday.com or follow her on X, Facebook, or Instagram @Blinfisher, @Blinfisher.bsky.social.. Sign up for our free daily money newsletter that breaks down complex consumers and financial news. Please subscribe here.
