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Research & Insights

Does Spending More Make a Better Gift?

Research finds that givers and recipients can read gift price differently. Learn what price signals -- and why spending more is not a shortcut to a better fit.

What a higher price does and does not say

Givers may see a higher price as proof that they care. In three studies, Flynn and Adams found that givers expected recipients to appreciate more expensive gifts more, but recipients did not show the same price–appreciation relationship. Spending can be generous; it simply is not a reliable substitute for understanding what someone wants.

A budget can improve the choice

Set a budget that fits your relationship and circumstances, then compare options by recipient fit. Does the person want the item? Will they use it? Is it compatible with their space, schedule, tastes, and needs? An inexpensive favorite, replacement for a worn-out essential, or well-chosen shared experience can say more than a costly object selected mainly for its price tag.

Keep the finding in proportion

The price study does not mean recipients never notice cost or that spending never matters. Norms differ by occasion and relationship, and some gifts have practical price thresholds. Its useful lesson is narrower: do not assume that increasing the price will automatically increase appreciation. Ask what the added cost improves for this recipient.

Ready to put this into practice?

Sources and further reading

Every study named above links to its own summary and full citation in the Research Library rather than straight off-site.

Last reviewed September 14, 2026.

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