The gift exchanges that I've been part of have had a limit of $15.00 Any amount up to that $15.00 was all right to spend, but it was definitely considered bad form to spend more than $15.00. This was to keep someone from being embarassed because their gift did not cost as much as someone else's gift. It never meant you had to spend $15 on a gift. But to use the gift before you give it is really tacky - I guess you should just be glad she didn't give you a bar of soap or a hanky!