The most difficult question in wedding gift etiquette is the question of how much money you should spend. No other question rates even close to as high in terms of wedding gift etiquette. Luckily, you know the bride and groom (otherwise, why would they invite you!) This gives you some leeway, because they know you as well. They know your age and general financial situation. They know if you're attending a lot of other weddings around the same time, and they know if you're saving to buy a new home or if you've recently gotten a raise. They'll be understanding if you are in a rough spot. The general rule as far as money is concerned with wedding gift etiquette is that the better you know them, the more you spend. Generally under $100 for a co-worker or casual friend, and as much as $150 or more for a close friend or relative. You should not try to match the amount you spend on the expenses taken for the wedding and reception; that's their business and you should give a gift that you feel comfortable with.
The other major concern with wedding gift etiquette is a cash gift. By all means, a cash gift is appropriate. It is considered a breach of wedding gift etiquette to slip money to the bride or groom. Check with the best man or father of the bride to find out the appropriate method of giving that cash envelope. Many weddings will put a box or other container for cash and check envelopes. Do not bring a non-monetary gift to the reception. There's usually not a lot of space.
Wedding gift etiquette is generally an exercise in common sense. Perhaps the easiest way to go about it is to remember the golden rule of all of etiquette. Give the gift that you would feel comfortable with them giving you, and you'll handle wedding gift etiquette with no problems.
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