Graduating from college is a major milestone, marking the culmination of years of hard work, late-night study sessions, and personal growth.
For many, it’s a moment of great pride and excitement, a gateway to the next chapter of their lives—whether that be entering the workforce, pursuing further education, or embarking on new adventures.
As a loved one of the graduate, you may be wondering how much money is appropriate to give as a graduation gift.
The answer depends on several factors, including your relationship with the graduate, your personal financial situation, and how comfortable you are giving a cash gift versus something more personal.
In this post, I’ll break down different scenarios and considerations to help you decide on the right amount.
1. Consider the Graduate’s Needs and Future Plans
College graduates often face a wide range of expenses after leaving school, and your gift could help them with this transition.
Some are entering the workforce and will need to cover rent, bills, or even a security deposit for their first apartment. Others might be continuing their education and could use funds to help with graduate school fees, textbooks, or general living expenses.
Take into account the graduate’s current situation. If you know they have financial needs, your monetary gift could be more impactful.
For example, $500 could cover a month of rent or go toward buying professional attire for interviews.
If the graduate already has a stable financial outlook, a smaller amount might still convey your support and encouragement without the pressure of providing for immediate financial needs.
2. Average Graduation Gift Amounts by Relationship
One of the key factors in deciding how much money to give is your relationship with the graduate. Close family members, like parents, grandparents, or siblings, often give larger gifts, while extended family members or friends may give smaller amounts.
- Parents: Parents typically give between $100 to $500 or more, depending on their financial situation and how they prefer to celebrate the occasion. Some parents might even choose to make a larger gesture, such as helping with a down payment on a car or contributing to student loan payments.
- Grandparents: Grandparents often give in the $50 to $200 range, though some might choose to give a more generous gift if they’re financially able.
- Siblings: Siblings might contribute anywhere from $25 to $100, depending on their own income and age. Younger siblings, for instance, may want to give a smaller, heartfelt gift, while older siblings with established careers may choose to give more.
- Extended family members: Aunts, uncles, cousins, and other relatives typically give in the $25 to $100 range, with closer relatives leaning toward the higher end.
- Friends: If you’re a friend of the graduate, a gift of $20 to $50 is usually seen as appropriate. Friends tend to focus more on sentimental gifts, so a small amount of cash or a thoughtful token can be just as meaningful.
3. Your Own Financial Situation
It’s essential to consider your own financial situation when deciding how much to give. While it might be tempting to match what others are giving, it’s important to give within your means.
The graduate will appreciate the gesture regardless of the amount, and there’s no need to stretch your finances to make a larger gift.
If you’re in a position where giving a significant cash gift isn’t feasible, consider giving a smaller amount along with a thoughtful, personal gesture.
For example, you could include a handwritten letter offering your congratulations, career advice, or sharing a favorite memory with the graduate. Adding a personal touch to a smaller monetary gift can make it just as meaningful as a larger one.
5. Cash vs. Gifts: Which is Better?
While cash is a practical and versatile gift, it’s not the only option. Some people feel that cash is too impersonal and prefer to give something more thoughtful or personalized.
If you’re unsure, you could ask the graduate what they’d prefer, or you might find a way to combine the best of both worlds.
For example:
- Gift cards: If you know the graduate will be shopping for specific items (like professional attire, furniture, or electronics), a gift card to a relevant store can be useful. Many graduates appreciate gift cards to stores like Amazon, Target, or Best Buy.
- Experiential gifts: Instead of money, you might choose to gift an experience. A plane ticket, a weekend getaway, or a concert ticket can provide the graduate with a memorable way to celebrate their achievement.
- Personalized gifts: For those who prefer giving something with a personal touch, consider custom items like engraved jewelry, a framed photo, or a custom piece of artwork. These gifts can carry sentimental value and commemorate the occasion in a way that cash might not.
6. How to Present the Gift
Once you’ve decided on the amount, how you present the gift can add a meaningful touch. For cash gifts, consider putting the money in a card with a heartfelt note.
If you want to get creative, you could present the cash in a fun or unique way, like a decorative box or even a “money lei,” which has become a popular and festive way to give cash gifts.
For those giving gift cards, slip them into a thoughtful graduation card or pair them with a small item, like a congratulatory book, plant, or piece of jewelry.
It’s the thought behind the gift that counts, so even small touches can make a big impact.
7. Alternative Gift Ideas for Tight Budgets
If you’re on a tight budget, there are still plenty of ways to celebrate the graduate without breaking the bank. Some affordable yet thoughtful gift ideas include:
- A custom photo album or scrapbook: If you’re close to the graduate, create a scrapbook of memories from their college years, with photos, quotes, and mementos.
- A career-related book: Choose an inspirational book related to their chosen field or personal development, paired with a handwritten note offering encouragement for the next chapter of their life.
- Homemade treats or a dinner invite: For a more personal and budget-friendly option, offer to cook the graduate a celebratory meal or bake them a batch of their favorite cookies.
Conclusion
When deciding how much money to give as a college graduation gift, there’s no strict rule. The amount can vary depending on your relationship with the graduate, their financial situation, and your own budget.
Whether you choose to give a large sum or a smaller amount, the most important aspect is that your gift reflects your support and pride in their achievement.
Whether it’s money, a thoughtful gift, or a personalized gesture, the graduate will appreciate your recognition of their hard work and the exciting new chapter ahead.
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