What Is the Right Amount to Spend on Christmas Gifts?

Miles Willis

It's time to get serious about my Christmas shopping, how about you? Finding the perfect gift can be stressful in determining just what gift captures the essence of the relationship and just how much should you spend?

The National Retail Federation conducted its annual survey this year, and found the average American plans to spend $659 on gifts for loved ones. Does that sound about right to you?

Perhaps a better way to look at the cost of Christmas is this: An economist says the typical family spends about 1% of its annual take-home pay on gifts, adding that you should keep in mind that a gift can actually hold more value to the recipient than the price the giver paid-- wanted or not-- simply because of who gifted it.

There is a school of thought in the culture-verse that suggests you can keep a lid on the cost of gift giving by following a formula of limiting gifts to four gifts only that meet these criteria:

Something you want.
Something you need.
Something to wear.
Something to read.

I like the sound of this and I can see it would be a good way to develop a sense of gratitude and appreciation while curbing the excessive commercialization of Christmas.