graduation gifts

How Much Money Do You Give For Graduation Gifts?

April 18, 2016 By Alexa Mason 1 Comment

Cap and gown season is here again and many people are looking for the right gift for the graduate in their life. Many will steer clear of buying flashy, expensive gifts and give exactly what someone fresh out of college (or high school) needs: money. Surveys have shown that most people feel that between $50 and $100 is an appropriate amount for a graduation gift. How much money should you actually be giving?

No matter what you put in the card, the graduate should feel great that you thought of them on their special day, however, you can easily be perceived as being cheap or too flashy when it comes to cash gifts. That is why it is important to know how much money is appropriate for a college (or high school) graduation gift.

First, you should know when you are expected to give a gift. If you receive a graduation announcement, it is not necessarily an invitation. If you receive an announcement in the mail, it is standard procedure to send a note with well wishes to the graduate. If you receive an invitation to the ceremony or party, it is expected that you’ll be bringing or sending a graduation gift of sorts.

When it comes to how much you should be spending on graduation gifts, a recent survey found that most people feel comfortable spending between $50 and $100. About 87 percent of people said that they felt obligated to give graduation gifts to close family. Just less than half said that they felt the need to give a graduation gift to close friends and only 6 percent said they didn’t feel the need to buy graduation gifts at all.

It also depends on which graduation you are celebrating. If your grad is leaving high school, many people feel like gifts up to $100 are acceptable. When it comes to college graduation, many people are spending anywhere between $100 and $500.

US News and World Report suggests that gift from relatives range from $20 to $50. If you’re just a friend of the family, the suggested amount of money is $15 to $50. While these are stated norms, many people plan to spend at least $100 for graduation gifts this season. There are a plethora of different ways to present cash as well. It does not have to be simply put in a card. In fact, a great way to present it is to put it in a book. Whether it be an advice book for a recent college graduate or a book from their favorite author, the grad will appreciate both the cash and the read.

When it comes to gift-giving for cap-and-gown season, many people also struggle with whether they should buy a gift or give money. The number one gift for the season is cash, however, a physical gift may be the way to go if the person you’re buying for needs something specific. Many people also scout creative and meaningful gift ideas for the graduates in their lives. You can find a lot of these ideas on websites like Pinterest.

If you are graduating this season, don’t forget to buy thank you notes. A hand-written thank you card can make all the difference in the world.

Photo: Flickr: 401(K) 2012

How Much Cash Is Appropriate To Give for A High School Graduation Gift?

June 4, 2015 By Lori Kelley 6 Comments

One of the most popular questions on SavingAdvice this time of year is how much cash should one give a high school student for graduation.

There are a lot of variables which need to be taken into account, but there seems to be a basic consensus that the appropriate amount of cash to give depends on how close the person is to you. The general rule is the closer the person is to your family, the more the cash gift should be.

How Much Do You Give A High School Graduate Who’s An Acquaintance

When you receive an announcement in the mail that someone is graduating from high school, it’s important to remember an announcement is not the same as an invitation. There is no obligation to send the graduate cash or a gift unless you want to (a congratulations card or small gift will suffice). If you do decide to give something in this situation, cash or similar in the $20 – $30 range is appropriate.

How Much Cash Do You Give When Invited To the Ceremony

Unlike a graduation announcement, it’s considered good manners to give a gift to the person graduating when receiving an invitation to a high school graduation whether you attend or not. Again, it depends on how close you are to the person, but a cash gift in the $20 – $50 range is usually appropriate.

How Much Do You Give A High School Graduate Who’s A Distant Relative

If you have received an invitation from a distant relative to attend a graduation ceremony, a cash gift in the $50 range is appropriate.

How Much Do You Give A Graduate Who’s A Close Friend or Relative

For those who are close to you and graduating from high school, a cash gift in the range of $50 – $100 is most often appropriate. If the person is part of your immediate family, the gift should be appropriate to what your family does in gift giving situations.

Should I Give A High School Graduate Cash?

What is the best gift to give a high school student graduating? In general, if you don’t know the person well, you can stick with cash, a check or a gift card. There are other great graduation gift options as well. A gift is appropriate if you know the student well and know what he or she would like, but for those who are in doubt, it’s best to stick with money.

What Should Graduates Who Receive Money Do?

For those on the receiving side of cash or gifts for graduation, it’s appropriate to send a hand-written thank you card for each gift you receive. Even in this day and age of computers, it’s still not considered appropriate to send a thank you by email or text message.

(Photo courtesy of m00by)

10 Great Financial Gifts for the College Graduate

June 5, 2012 By Danielle Warchol 1 Comment

While money gifts aren’t the best financial gift you can give your kids, that doesn’t mean that they aren’t a good choice at times. Sometimes it’s hard to figure out what gift to get for a new college graduate. Do you want to get them something they’ll cherish forever? Something fun and entertaining? Something that will help them as they embark on a new life? Regardless of what you choose, you can rest assured that most new college graduates will appreciate financial gifts. Why wouldn’t they, after all? Financial gifts can help pay down debt or pay for an interview, job, or apartment necessities.

Cash

If you can’t think of any unique gift options, you can always default to giving a gift of money. Whether you want to give $20 or $200, it’s something they’ll appreciate and gives them the greatest flexibility to use it in a way that is best for them. Of course, this is assuming that you feel the recipient has good financial sense and won’t go out and blow it on beer to celebrate.

Prepaid Card

A prepaid card might not be an original idea, but it’s just as appreciated as cash. It’s another great financial gift for any college grad. A prepaid Visa or American Express card is perfect for a variety of things such as apartment essentials or a new job interview outfit. You can find prepaid cards at online marketplaces such as amazon.com, in convenience stores, or through the credit card company’s website.

Starting a Roth IRA

Giving the gift of money for retirement savings might not be your ideal gift. You might think it’s tacky or worry that a new college grad won’t appreciate it. While they might not understand why they need a retirement savings before they enter the workforce, they’ll come to appreciate your donation. You can open a Roth IRA with any monetary amount you prefer. Best of all, you can let that college graduate know that while it’s probably best to let the money gain interest, they can withdraw money at any time without taxes or penalties.

Grocery Gift Card

If you know a college graduate that’s going to be moving into their own apartment, a gift card to a grocery store might be a perfect gift. You can pick one up online or in most local or chain supermarkets. College grads will soon learn how expensive groceries (or dining out) can be, so giving them food money will always be seen as a great gift.

Gift Certificates

On that note, almost any type of gift certificate is a great financial gift for a college graduate. You can buy a gift certificate for almost any item or service, from clothing stores to online shopping to everyday necessities. Gift certificates are a more personalized way to give a gift of money, and if you’re a close friend or family member, you’ll know exactly the type of gift certificate to buy.

Apartment Furnishings

College grads will soon learn that furnishing a new apartment is also very expensive. They have to buy furniture, cooking utensils, food, toiletries, and other apartment necessities. All those items add up quickly! If you’re looking to buy a useful gift, spend some money on kitchen or household appliances or furniture. It will be one less thing your college grad has to worry about buying.

Renter’s Insurance

Renter’s insurance is another great financial gift. Renter’s insurance isn’t something most twenty-year-olds think about, but it’s definitely something worth having. People renting an apartment for the first time usually don’t worry about what would happen to their belongings if they were stolen or damaged by a weather-related disaster. Depending on the company you buy the policy from, renter’s insurance can run between $150 and $300.

Interview or Job Essentials

Many new college grads are unprepared for the job search in many different ways. Try buying them an interview suit (or a gift card to a store that carries professional attire). A nice suit can be very expensive and most grads will appreciate having that bought for them. If they already have an interview outfit, try buying other interview or job essentials, such as a nice portfolio for them to carry to interviews.

Money Toward Student Loan Payments

So many college students are graduating with thousands of dollars of debt. Graduating students usually have a six-month grace period before they have to start paying back their loan, but if they don’t have a job, they’re in danger of defaulting. If you’re looking to give a grad a financial gift, think about contributing to their payment plan. Even if you can’t give a lot of money, they’ll definitely appreciate anything you’re willing to give. Any newly graduated student is grateful for assistance in paying back their loan.

Financial Consultation

Unfortunately, most high school and college students don’t learn about personal finances and investments. Something this means they end up making poor financial decisions right after they graduate from school. Consider giving your new grad the gift of a financial consultation. A consultant can help teach them about job benefits, how to save for retirement, and the best way to pay off debt once they find a job.

If none of these financial gifts seem like enough, you might also want to consider adding gifts that save money as well.

(Photo courtesy of kevin dooley)