Everyone has gone through the experience of gift giving. However, there exists a stereotype that a gift is a physical object that can be felt and wrap in beautiful packaging (material gift), but a gift can either be a material gift or an experiential gift. Recent research has shown that experiential gift brings more happiness and built more socially connecting for the recipient when compared to material gift. Increasing research also suggests that consumers should be spending money on experiential gift then material gift. However, selection of gift depends on many factors. One of the factors that buyer have is their budget when they are choosing the perfect gift. Thus this study aims to investigate how to choose the perfect type of gift (material vs experiential) under different level of financial constraints. In this research, three experiments are carried out to investigate if the gift giver will choose material gift or experiential gift under different constraints. The first constraint is when the gift giver is under high or low financial constraints. Next, in addition of the financial constraint, we add in the difference of the social distance between the gift giver and recipient if they are of close or distant social distance. In the last experiment we investigate if the gift giver's motivations of either obligatory or voluntary in addition to the financial constraints will affect their choice of gift. From the experiments, it is revealed that the gift giver under low financial constraint will choose material gift over experiential gift. In addition, financial constraint does not affect the choice of gift when the social distance between the gift giver and the recipient is distant. Last but not least, regardless of financial constraint, if the purchase of gift is obligatory instead of voluntarily, the gift giver will more likely choose material gift.