There is really a way to compromise when it comes to gift money. Take a set percent (10% or even maybe as much as 20%) and do something “fun” with it. Something memorable like a nice dinner out or if it is a small enough portion a couple of $5 DVDs from Wal-mart. Then use the rest to pay off debt.
But you need to have a solid, rigid, agreed upon rule on what that percent is.
The single greatest tool that I have taken from Dave is the PLAN. When you have a plan, these things become second nature.
You are correct, but most often I see trips to Cancun or other lavish purchases. Not moderation, but excess. I am with you 100% that a small “fun” purchase is a great thing.