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If you two are in a serious relationship, then absolutely do something that will make her feel special, but don't go overboard. The amount of money, time, and effort you put into this should be directly proportional to how long you been with her. So if you've been with her for a year, $100 would be acceptable. Been with her for 4 months, dinner at a decent restaurant and a movie. Been with her less than 2 months, burn her a CD.
Don't be one of those chumps who puts out a lot of money when the relationship is still new. She will be expecting the same SPAM next year, most likely even more.
I agree completely. I've made the same mistake time and time again - I always end up going way over the top for Valentine's Day. $80 for the best restaurant in town (wine is expensive), $100-120 for decent presents, and then some emotional shit like a poem (yes I wrote a poem once, fuck off my back about it) or flowers which can vary from free to $50+. While you're guaranteed to get some brownie points for outdoing all of her friends' boyfriends, you'll have to try even harder next time to impress her and outdo yourself or you're fucked. It's a slippery slope.
Make the day special, take her to a park and out to a nice restaurant or something to that extent, and maybe throw in a light present. Just make sure you don't go overboard. And seriously, stop trying to game your girlfriend if you've been with her for an entire year already. You're allowed to be gay at this point.