words | Justin Figueredo, Financial Analyst
Now that you’ve earned some cash over the last couple of months, what better way to spend it this holiday season than by giving! Here are some holiday spending tips, as a gifter, to maximize the return on your gift investment which is measured by the cost of an item and the giftee’s satisfaction.
First of all, there are four types of giftees:
1. Low Cost: appreciates the thought that the gifter put into selecting a unique gift more than the cost of the gift itself. You’ve probably heard, “It’s the thought that counts,” from these low-cost giftees before. For example, crafts, homemade cards with notes, or a DIY project that you thought of specifically for the giftee go a long way.
2. Status: prefers premium gifts that most often come with a hefty price tag. Personalization, customization, and name brands are typically highly valued by these giftees. The latest technology, the hard-to-find equipment, or fashionable clothing will hit the spot. Because these are most likely big-ticket items, try corralling other family or friends to pitch in and lower your cost while maximizing the giftee’s satisfaction.
3. Value: in between low cost and high quality, and prefers useful gifts. This giftee appreciates the most “bang for your buck.” Needs are more important than wants; therefore, think of what this giftee needs. New clothes the giftee may have outgrown or everyday gadgets that would make life easier are great ideas. Cash and gift cards suffice as well for this giftee!
4. Time or Service: This giftee doesn’t prefer physical gifts. Instead, he or she just wants to spend quality time together or receive a kind act of service instead of a gift. Offer babysitting services for date night or take the giftee out to his or her favorite restaurant. Personalized “coupon” books with acts of service (washing dishes, vacuuming, dog walking, etc.) for the giftee to redeem when desired is always a hit!
Before deciding on a gift, determine what type of giftee your friend, sibling, parent, significant other, etc. is and think of gifts that would maximize the return on your gift investment. Spread the maximum cheer this holiday season!