Gift Giving Budget: How Much Should You Set Aside?

There's no limit to what you can give. But aside from practicality, you must be reminded that sometimes too much might harm your loved one. So check out some facts first. 

Some Gift-Giving Budget-Setting Tips

1. Open A Separate Account

Sometimes it's best to reserve funds for emergencies and gift-giving. You'll never know when you have a lot of money to spend and when you experience financial droughts. You can open new online bank accounts for the many funding purposes you may have.

This way, you can transfer from one account to your other bank accounts where there's a need. It's like funding your gift-giving account at the beginning of the year for birthdays and weddings that you may have to attend this year. Your loved one's birthday should be on your priority list too.

2. Plan Your Gifts

You can never determine the "how much" of things unless you list them and check costs. It may be too objective, but money matters should be well thought of. It's hard to be hard up when the gift-giving time arrives.

Lists all the celebrants you know that you need to give to this year. This digital age won't give you an excuse, even if the recipient is on the other side of the globe. There are already platforms where you can send eGifts for your loved ones across continents. All you need is a well-funded account.

You can estimate your gift-giving costs roughly, then reserve an allowance for weddings and anniversaries that may surprise you. Don't be shocked by the amount. Just start setting aside an amount for it every payday.

There's no rush. Save as much as you can. You can continually replenish your funds every time you withdraw from the funds and give out gifts. Avoid getting stressed over gift-giving, especially during the holidays, and plan and save for them. 

3. Identify Your Recipients

Sometimes the kind and cost of the gift you give depends on who the receiver is. Depending on your relationship and the person's importance, that's usually your budget's reference point. There are many ways to send gifts, including sending money or gift funds. 

Some recipients opened a "gifting account" or a "gift fund account," so givers like you can transfer funds (your gift) to their account conveniently. Gifting or gift fund accounts are separate bank accounts opened so the account holder can receive money from friends and family for a specific purpose. Some open the account for the following:

• Wedding Expenses

A loved one may be planning a grand wedding, and your gift can help the couple make a dream come true. Your fund transfer to their wedding expenses account will let the couple know how you care for and support their union.

• Down Payment For A Newly-Wed's home

Getting a home for the first time is a challenging feat. Your gift amount will be a remarkable contribution to a newly-wed's home. A fund transfer to their account will let them know you care and share their future plans.

• Hospital And Medical Fees

Being sick makes the sufferer desperate for kindness. Your sent funds will let them know that even if you're not there with them, you care and want to help them.

Though you can't identify all your gifts' receivers, it is still best to at least know their lifestyle and a little of their likes and dislikes. It's disheartening to give an unwanted gift. It's like throwing your money in the bin.

So it's best that you can give gifts that are worth the money you paid for. They don't need to be expensive. Many worthwhile presents may not cost you too much. 

Bottom Line

Giving gifts should be a selfless act of showing someone you care and how important they are to you. It doesn't have to be grand. It's the thought that usually counts. With your presence, the gift-giving will be memorable.

Take some valuable tips from the links in this section, and you're sure to give your loved ones a unique gift that shows your heart for them.