More shoppers are pulling back on budgets. What's the 'going rate' for gifts, tips?

What insights can gifts, tips and teeth give us?

While traditional indicators of the state of the economy may be things such as the monthly consumer price index, interest rates or gas prices, a financial services company has another suggestion: looking at how much people are spending on gifts, how much they leave as tips and even how much the Tooth Fairy is leaving under a pillow.

And according to the new study of the "going rate" of several items by Empower, Americans say inflation and tariffs are visible in gift prices and consumers' concern is showing up as "gift fatigue" and "no gift" policies. Tipping habits and even allowances are also feeling the brunt of rising prices.

"The going rate tracks the cost of giving," Rebecca Rickert, Empower head of consumer insights, told USA TODAY. "I think what we commonly frame as etiquette is really a lot more about economics. ... Generosity can be a surprisingly powerful economic indicator."

How much should you give?

Here's some key findings taken directly from Empower's "Going Rate" study:

• Etiquette confusion: The pressure to give is real for 50% of the respondents − they just don't know how much is enough.
• Gifts cost more: On the other end of the spectrum, some feel it's all too much. Three in 4 respondents say tariffs and inflation are increasing the cost of gifts, while 60% feel that gifting culture is "out of hand" and an additional 48% feel "gift fatigue."
• What to give? To the question of how much, here's how Americans define the average "going rate" for gifts: birthday $56 for adults, $83 for kids; wedding gift at $85; holiday gift at $64; Mother’s Day vs. Father’s Day at $55 vs. $38; teacher or coach gift at $15.
• How much? When it comes to the kids, the weekly allowance comes in at $37 per child and Tooth Fairy payouts at $14.87 per child.
• Tipping today: For takeout, people say they leave a median tip of 16%, for food delivery 11%, for beauty services 14% and 10% for their ride shares.
• Generational generosity: On the question of who spends more, 55% think their generation spends more than the others. And cash and gift-card giving is on the rise. Seventy-nine percent feel cash and gift cards are more acceptable these days (rising to 84% of Boomers). 
• The guest rule: 49% of wedding guests say you should “pay for the plate.”
• Time is a gift: 44% say they'd rather give "the gift of time" instead of material items.
• Present pause: 33% are asking for "no gifts" this year.

Pulling back on holiday spending with more thoughtful, smaller gifts

The Diaz family of Ridgewood, New Jersey, have a lot of people on their Christmas gift list.

Julia Diaz, 59, buys for about 20 people, including her family of five, extended family members and close friends.

Her daughter, Oriana Diaz, 32, has about 30 people on her gift list, including her family, her boyfriend's family and work mentors and friends.

They are both cutting back this year on holiday gifts as prices have increased. Julia plans to spend half of her normal $50 per person.

"Everything is expensive now compared to last year," she said.

Oriana plans to buy smaller hand-made gifts.

She considered asking her family and extended family to do "no gifts" this year, but the act of giving each other gifts is so important to the family.

"I've thought about having a conversation where we scale it back," Oriana said. Last year, she bought handmade or artisan gifts. She gave several of her work colleagues a fresh loaf of bread from her mother's business, Cecilia Bread, paired with special olive oil dip. The loaf was $15 and the total gift was about $30.

Julia Diaz is not anticipating that her holiday bread-baking business will be impacted because her price point has stayed the same and it has been a popular gift item. She has not raised prices, even though her ingredient costs have gone up.

'Going rate' gives people a peek into wallets

The "going rate" gives people an idea of what other Americans are spending on each other, Rickert said.

"People don't talk about 'well, how much did you give?'" she said.

Offering the "going rate" "gives people a peek into everybody else's wallets because these are hard things to talk about or get answers on," Rickert said.

(This story has been updated to add information.)

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.