The National Retail Federation shows that the average graduation gift 2023 cost $116. But is that an appropriate dollar amount to give to the graduates in your life?
You may think this dollar amount is too high. Or too low. The answer to how much you should give as a graduation gift depends on many factors. In this article, we can help you determine the correct answer for your situation.
Graduation Gift Guidelines
According to the National Retail Federation’s research, people gave over $6.4 billion in graduation gifts in 2023. And over 50% of those surveyed gave cash as a gift.
Graduation gift amounts have been ticking upward for years, mostly (as shown by this chart from the NRF).
Because of that, knowing how much money to give for a graduation gift can be an elusive decision. So many factors can come into consideration:
- How much can I afford to give?
- What are other people giving
- How well do I know the recipient?
Luckily, there are some guidelines you can use as you work to decide how much you’ll spend on the graduates in your life. You might be surprised by what the research and guidelines show.
How Much Money to Give an Elementary School Graduate
Yes, believe it or not, elementary school graduation gifts are a thing. These days, our kids need more encouragement than ever.
Celebrating a child’s graduation from elementary school motivates the child as they ponders the daunting thought of starting middle school.
Elementary graduation gifts don’t have to be expensive. While such an accomplishment is worth celebrating, a cash or other gift of between $20 and $50 is usually sufficient.
How Much Money to Give a Middle School Graduate
As with elementary school graduation gifts, people often give gifts to middle school graduates who are on their way to high school.
The average gift amount of $116 mentioned in the National Retail Federation’s survey is more geared toward high school and college graduates.
If you have a middle school graduate you’d like to give a cash gift to, consider giving between $25 and $50.
How Much Money to Give a High School Graduate
Graduating from high school is a bit bigger of an accomplishment. Most of us remember how tough the high school years can be regarding workload and social.
And high school graduates are also facing the monumental task of determining what life after school will look like.
Will they attend college? Or trade school? If so, how will schooling be paid for? Will they go straight into the workforce?
If so, how will they manage transportation and other factors? Giving gifts, whether cash or other gifts, is our way of helping give high school graduates a boost as they enter the adult world.
Depending on how well you know the graduate, a gift of between $30 and $100 is usually sufficient. You can consider starting a $100 investment option for them.
How Much Money to Give a College Graduate
Graduating from college is a significant accomplishment. As such, monetary gifts for college graduates are often more significant than those for high school graduates.
Depending on how well you know the graduate, consider giving a gift of somewhere between $50 and $500.
Another option is to give a college graduate the gift of financial education. Now, more than ever, is the time for graduates to make a plan for their money.
Consider giving books such as The Millionaire Next Door by Thomas Stanley or The Intelligent Investor by Benjamin Graham.
Tips for Giving Money as a Graduation Gift
The guidelines above are simply guidelines for how much money to give as a graduation gift. You can also use the tips below to determine how much you’ll provide.
Consider Your Financial Situation
Your financial situation might be necessary to consider as you decide how much to give your gift recipient.
For example, let’s say you’re in a situation where you’re tight on money. Maybe you’ve experienced a job layoff.
Or you’re working diligently at paying off your debt quickly. If your budget is strained, it’s okay to give less than or on the lower end of recommended amounts.
You can always combine your cash gift with an additional non-cash gift. For instance, you could give an experience gift of time spent with the graduate doing something fun.
You could also donate time in your graduate’s honor (like volunteering at an animal shelter) or look for new stuff in the free section on Facebook Marketplace.
Another option: give a sentimental-value gift. Give the graduate a personal item of yours that means a lot, and that will be a blessing to the graduate, such as a piece of heirloom jewelry or an item you made yourself.
On the other end of the spectrum, you might consider giving a more significant monetary gift to the graduates in your life if you’re doing very well financially.
Consider Your Relationship With the Graduate
Your relationship with the graduate can be an essential consideration as well. If the graduate is not someone you’re close with, giving less money is okay.
Conversely, you may consider giving more money if the graduate is a close family member or friend.
You may need to find the right balance here. For instance, let’s say your cousin’s son is graduating. You may have been extremely close with your cousin growing up.
However, if the two of you haven’t talked in years and live three states apart, don’t necessarily feel obligated to give a larger-sized gift. But you may consider doing so as a gesture of appreciation for your childhood relationship with your cousin.
Let your gut be your guide.
Consider the Graduate’s Personal Situation
Some people decide on the amount of graduation gifts they give based on the graduate’s situation.
As an example, it might be that the graduate doesn’t have close family members to help support them.
Or it could be that the graduate has a long, expensive college bill ahead of them due to their career choice.
You may give a graduate more than you would in other situations for these and other reasons.
Conversely, if the graduate on your gift list has more cash than they know what to do with, you may consider a smaller monetary gift.
A sentimental or other non-cash gift may be a better choice in instances like that.
Creative Ways to Give Cash as a Gift
Are you considering giving cash as a gift but looking for creative ways? Consider these ideas.
- Swap the candy from a Pez dispenser out for cash
- Get a pizza box and arrange the bills in a circle (your pizza), topping the bills with coins (your pepperoni)
- Fill a jar with money and candy
- Give the gift in rare bills (like $2 bills) or coins
- Hide the bills in a great book that has inspired you
- Fold the money into creative shapes
- Wrap the money in increasingly bigger boxes
- Make a payment toward the graduate’s student loan debt
- Give a gift card for a massage
- Deposit into an investment account for them
Search the internet for more fun and creative ideas on giving cash.
Alternatives to Cash For Graduation Gifts
Consider these ideas if you’re searching for alternatives to cash for graduation gifts.
Give Something Sentimental
Sentimental gifts are always fun. Choose something special to you or to your gift recipient.
For instance, you can choose a piece of heirloom jewelry or a book that has a special meaning to the gift recipient or has inspired you.
Give a Handmade Gift
Handmade gifts can also be great alternatives to cash. Use your gifts and talents to come up with great gift ideas.
You could make something to wear if you’re a knitter, seamstress, or crocheter. Or, use Redbubble to create a custom t-shirt design.
Other ideas include creating a photo album highlighting your history with the recipient, making homemade soaps, lotions, and lip balm, or making a ceramic piece at a local ceramics store.
Give Something That Will Make Life Easier
Another cash alternative is to give something that will help the graduate on their next leg of life.
For example, you could give a care package to a high school graduate heading off to college. It could include snacks, toiletries, and a gift card for a streaming service.
Give the middle school graduate an organizer to help them prepare for the tougher workload they’ll face in high school.
Think about what your graduate will do next and plan your gift accordingly.
Summary
Knowing how much money to give for a graduation gift can be helpful. However, it’s the thought that counts.
Give the graduates in your life the gift that best conveys your love and support.