What It Means
A gift budgetBudgetA plan for a set period, usually a month, that lists the money you expect to receive and how you'll spend or save it. See more is a plan for what you'll spend on presents, made before you shop. It lists the people and occasions you buy for, such as birthdays, holidays, weddings and thank-yous, with an amount beside each, and adds them into one total for a season or a year. The Consumer Financial Protection Bureau's holiday advice, a list of names with a planned gift and price for each, works the same way for any occasion.
Try It: Plan a Year of Gifts and a Monthly Amount
Example numbers for one household's year of gifts. Change any of them.
How It Sounds at Home
- "We cap birthday gifts at $30."
- "I've already spent the gift money for this month."
- "Let's do a name draw this year so nobody overspends."
The Breakdown
Worked example. One household's gifts for a year (example numbers):
| Occasion | People | Per gift | Total |
|---|---|---|---|
| Birthdays | 1010,000 stepsA popular daily step goal that began as the name of a 1960s Japanese pedometer; later studies find health benefits begin well below it. See more | $30 | $300 |
| Holidays | 8 | $50 | $400 |
| Weddings, showers and new babies | 2 | $75 | $150 |
| Teachers, hosts and thank-yous | $100 | ||
| Year | $950 |
Spread over 12 months, that's about $79 a month set aside.
What the result means. Setting aside the monthly figure spreads the year's gifts across every paycheck. The holiday share, about 42% here, is money needed all at once in December, so it helps to start setting it aside early in the year. If the yearly total is more than you can spare, trim the per-gift amounts or the list before you shop.
The CFPB's list method, for any occasion
- Cover rent, bills and other regular costs first.
- Decide how much of what's left can go to gifts.
- List who you're buying for, what you plan to get each person and what it costs.
- Cross each gift off as you buy it.
Good to Know
The Consumer Financial Protection Bureau suggests shopping with only the cash you plan to spend, and using a credit card for gifts only when you have a specific plan to pay the bill. It also points out that sales can tempt you into buying things that weren't on your list, so compare prices across stores and online and stick to the names you wrote down.
FAQ
How much should I spend on gifts?
There's no set figure. The CFPB's approach is to cover your regular bills first, decide what's left for gifts, and then split that amount across the people on your list.
How do I make a gift budget?
List everyone you buy for over the year, write down what you plan to get each person and what it will cost, and add it up. Divide the total by 12 to see what to set aside each month.
How do I stay within my gift budget?
Cross gifts off the list as you buy them and keep a running total. The CFPB also suggests comparing prices and being wary of sales that pull you toward items that aren't on your list.
Do It in Buhata
Gifts and Birthdays
Keep your gift list in Gifts in Buhata, and add each person's birthday in Birthdays so every occasion shows up ahead of time.
Open BuhataRelated Terms and Categories
- Holiday budget
A spending plan for the holiday season that sets how much you'll spend on gifts, food, travel and decorations before the shopping starts.
- Christmas club account
A savings account you pay into on a schedule through the year, so the balance is ready for holiday shopping when the bank or credit union pays it out.
- Sinking fund
Money set aside in small, regular amounts for a known future cost, so the bill doesn't land on a single paycheck.
- Teacher gift amount
How much to spend on a gift for a child's teacher, which etiquette guides leave to you and some states and school districts cap for public school staff.
Sources
Consumer Financial Protection Bureau, "Plan your spending to avoid holiday debt"; Consumer Financial Protection Bureau, "A five-step spending plan to avoid holiday debt"
Last updated .