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Based on my bank account. I personally would feel uncomfortable giving any other way.
Kind of a combination of what I can afford and what they gave to us (if applicable). I never give more than we can afford, obviously, but I do look at what they gave us as their idea of an appropriate gift. For example, if I gave someone $50 and they gave us $200 a year later, I'd kind of feel shitty because they gave us so much more than we gave them. I don't want to make people feel badly. So it just seems safest to give about what they gave us.
I agree it's a combination. Not to start the cover-your-plate disaster again (please don't)... it's cover your plate PLUS what you'd like to give for a gift. Say my plate was estimated at $50, and I'd like to give a $200 gift, I'd give $250.
ETA: Obviously not more than I could afford. CYP is an estimate/guideline. It's not set in stone, it's just a different way of thinking.
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Do you give based on what you think will cover your plate, based on what they gave you OR give what your pocket can afford?