The hidden economics of buying presents for each other

I received a complaint that I don’t write much anymore, so here are some things that have been bothering me lately.

Why do we give presents to each other? I know its tradition and all, but if you really think about it, it is stupid at best and irresponsible at worst. Follow me here:

Now, I’m not counting family here. If you have kids, you have to buy them things, there’s no getting around that. And if you have parents, you’ll more than likely see the need to reward them for all they’ve done for you. After all, if you’re thinking back to when you were younger, you have a huge way to go to balance out the “present spending amount”. When you were 8, for example, your parents probably bought you something along the lines of:

A video game system,

A bike

GI Joe / Barbies

And other numerous toys

Depending on the wealth of your family, you’re most likely looking at a few hundred dollars.

You, on the other hand, probably bought them something from the dollar store. So don’t be complaining when you have to help put them into a home after they can’t remember if your name is Shirley or Airplane.

My main point is about gifts from friends. Think about all the different occasions when we’re expected by society to give gifts to our friends, or even people that aren’t our friends.

Weddings, Birthdays, Moving-in Parties, Baby Showers, Holidays - just to name a few.

We are obligated by society to purchase gifts if we are in attendance at these occasions. If you show up to one of these occasions empty handed, watch out! You are a bad friend, which ironically will save you money in the long run, since you won’t be invited to these events, and will not be forced to purchase more gifts.

If you look at the situation logically, what is really happening in these instances is that you and your friends are spending each others money on things that they would not normally buy. Do you really NEED that CD that you get for Christmas from your friend? How often have you gotten a present that you really needed? “Hi Bill, yeah, thanks a lot for paying my electric bill. That was a great present!”

If you’re a young person, or young family struggling to pay the bills, why should you feel that you’re forced to spend money just because your friend decides that they’re going to have a baby. That’s great for them, bad for your wallet. Also, if you never have a baby, then you’re never going to get that present back. You’re going to have a present trade deficit with that friend.

For a young person or couple, the most financially sound thing you can do is to have no friends. That way, you and you alone will dictate how and when you will spend your money. No more will you be unable to take your wife out to dinner because your co-worker decided to get married. You might be able to afford to pay all your bills in the same month.

I know it’s a crazy idea, but it just might work.