Giving money, items or experiences to a loved one who has reached an educational milestone is a long-standing tradition in the United States.
A National Retail Federation’s 2024 graduation spending survey found that 34% of respondents will be buying a gift for a high school or college graduate this year. People expected to spend $116.97, on average. More than half (52%) planned to give cash gifts.
The type and value of what you give depends on many factors, including the person’s age and your relationship to them. In the end, though, the amount you spend should always be within your financial means.
Gifting to Elementary and Middle School Graduates
Advancing to the next major grade level is an exciting step for many kids, so you may want to give them a token to commemorate the event.
Nick Leighton, an New York-based etiquette expert and host of the Were you Raised by Wolves? podcast says he does not recommend cash gifts for kids and young teenagers. An age-appropriate item, however — especially when you’re related to the child or know them well — is a lovely gesture.
“It should be something that is related to what they’re interested in,” Leighton says. “Or, it could be one of your passions. I like to introduce people to art and music. Experiences are also nice. Take them on an outing as a treat. The point is to give something that indicates that they are special to you.”
If you want to bestow something to the parent of a child in this age group, you may want to help them build funds for the child’s higher education.
Patricia Roberts, the chief operating officer of Gift of College, Inc. in New York City, says donating to a 529 college savings plan is easy and affordable. These tax-advantaged accounts help people save for post-secondary education, and the sooner they begin investing, the more time value of money works in their favor. The company’s gift cards are available in denominations starting at just $25, so can suit almost everyone’s budget.
[READ: Gift Card Do’s and Don’ts ]
“This type of gift is priceless,” Roberts says. “Children tend to be more academically engaged and optimistic about their futures when they know someone is saving for them.”
Gifting to High School Graduates
Leaving 12th grade behind can be an emotional day for teenagers. They’re shifting into adulthood, which is thrilling, but what lies ahead can also be scary.
Giving $100 or more (depending on your budget and relationship) is common, but there are no specific rules. A very small sum can seem unimpressive, though, whether it’s in cash or on a gift card, so peruse popular presents for high school graduates. For as little as $25 you can commemorate them earning their diploma with a unique item.
Target the teenagers’ needs, interests and what they don’t already own. If you don’t know, ask. Chances are you’ll get a long list, but give a maximum dollar figure to set reasonable expectations.
“We want to gift people something that makes them feel loved and supported, appreciated and seen without stressing our own budget,” says Genevieve Dreizen, an etiquette expert and COO of Fresh Starts Registry.
Something that will help the high school graduate smoothly transition to their next phase of life can be especially valuable.
For example, if you know the person is moving out of the family home and into a noisy college dorm room, Dreizen suggests something like Beats Wireless Headphones, which are in the $200 range. They’re cool and will help drown out the din of loud roommates.
Gifting to College and Trade School Graduates
“What older graduates need the most is money,” says Eshed Doni, CEO and founder of Giftcrowd, a crowdfunding platform for gifting.
“I have two kids in college and they’re going to need every dollar they can get to start their life. Ideally, an appropriate monetary gift for graduates should range between $100 and $500,” he says.
One reason money is so desirable is that the graduate may be facing daunting student loan debt. A bulk of cash can help ease the looming repayment pain. According to the Education Data Initiative, the average debt for a four-year bachelor’s degree was $34,700 in 2023. Shorter trade programs can be more affordable, but many students also take out loans to pay for their vocational education.
[The Trade School Trend: Why it Might be the Best Personal Financial Decision]
If you have only a small sum to give, whether to help the graduate with student loans or for something like a vacation or a new interview wardrobe, consider getting other people together and combining funds. With crowdfunding campaigns, a group of people can make contributions toward a luxurious gift.
“Maybe all you can afford to give is $50, and that’s OK, but it won’t feel like a lot to the person,” Doni says. “The graduate is much more likely to spend smaller incremental cash gifts on unimportant things. But ten times that amount, with other people contributing, is $500. That can put the person at a much better starting point.”
[Considering a Crowdfunding Campaign? Know the Pros and Cons]
Gifting at and After the Graduation Ceremony
Although you are not bound by any social law to give to any graduate, if you’re invited to the ceremony and attend, especially if you know the person well, it’s good manners to give something, Leighton says. “But it’s like a wedding,” he says. “You don’t bring a gift, you give or send it later.”
It’s a matter of practicality. An envelope full of bills can easily be lost or stolen when the graduate leaves the ceremony to do something fun afterward. The NRF survey found that gift cards are favored by 35% of graduation gift givers. Present them at a less hectic time so they don’t get thrown out in the shuffle.
Presenting a floral bouquet when the graduate leaves the stage is traditional, but you’re putting the person in an awkward position because they have to hold and transport it throughout the day and night.
Because bouquets can cost $50 or more, and may be left on a chair just moments later, you may want to opt for a flower lei to place around their neck after they receive their diploma. For a similar price, they’re much easier to handle and make for priceless photographs.
Whenever you give, make an effort to be discrete, particularly when others are giving more modestly. “Don’t embarrass people with inappropriate gifts or things that are too flashy and expensive,” Leighton says.
Resist Graduation Announcement Guilt
When you receive a graduation announcement, you may wonder if you are obligated to give something, even if you don’t know the person or family well. Too often these notices are interpreted as invoices, Leighton says, particularly when they include registry information and Venmo instructions.
“Indeed, many people send out graduation announcements for the express purpose of extracting cash, goods and services out of the recipients and are upset when they don’t haul in as much loot as they were expecting,” he says.
Resist. Gifts should always be given willingly and not coerced, he adds.
Last, relax about the amount you do spend on a graduation gift. Respect your personal financial limitations. Celebrating a loved one’s academic achievement is not your cue to make a grand gesture that will hurt your present or future.
More from U.S. News
How to Negotiate With Debt Collectors
Use These Expert Thrifting Tips to Find the Best Buys
From Hobbyist to Entrepreneur: 10 Hobbies That Can Make You Money
How Much Should You Give for a Graduation Gift? originally appeared on usnews.com
