Americans are spending more than ever on graduation gifts, with total spending topping $5.8 billion in 2021 and 2022. However, graduation season generosity raises some tricky questions for parents, relatives, and friends.
Namely, how much money is the right amount of money to give as a graduation gift?
This article walks you through the key factors in deciding how much money to give for a graduation gift. We’ll consider factors like your relationship to the graduate, the level of graduation, and your financial situation. We’ll also look at gifting norms for high school and college graduations.
Balancing these factors will guide you toward a gift amount that is both within your means and appropriate for the graduation at hand.
4 factors to consider when deciding on a graduation gift amount
Figuring out how much money to give for a graduation gift comes down to context. How well do you know the grad? Are they graduating from high school? College? Are there any cultural customs to consider? What’s your financial situation?
These are all questions to ask as you settle on a gift amount that is both meaningful and within your budget. Now let’s take a closer look at four core factors that go into gifting the perfect sum:
- Relationship to the graduate
- Financial situation
- Local customs and traditions
- Type of graduation
Relationship to the graduate
Gifting money to family and friends is nuanced. For example, the closeness of your relationship plays a big role in determining how much money you should give to a new graduate. The closer you are, the more you might give.
- Parents and grandparents often support the graduate with larger gifts.
- Other close relatives, friends, colleagues, or distant relatives tend to gift more modest amounts.
- Friends and acquaintances often opt for smaller gifts.
Whatever the relationship, cash and other gifts are great ways to celebrate the graduate’s achievements.
Financial situation
Graduation parties and events can bring stress for families and friends of soon-to-be graduates — especially around the cost of graduation gifts. Social pressures and uncertainty can lead some to go beyond what they can comfortably afford with their gift amounts. That’s why it’s crucial to consider your financial situation when deciding how much money to offer as a graduation gift.
One simple way to avoid overextending your finances during graduation season is to make a plan and stick to it. That means deciding on a total budget, taking into account how many graduates you’ll be gifting, and how much you plan on giving to each.
Setting a budget and sticking to it can take the stress out of graduation season. And if you do make a plan for graduation season, keep in mind that these gifts are voluntary. No one else decides how much you should give.
Local customs and traditions
Take local norms into account when deciding how much money to give as a graduation gift. Different cultures have different traditions and different ideas of what is appropriate.
Knowledge of the recipient’s culture — whether you live in it or not — can guide your decision and ensure that your gift aligns with expectations.
Customs and traditions are often more about how you deliver the gift than how much you give. In China and other East Asian cultures, for example, gifting cash in red envelopes called lai see or hongbao is a common practice. And in India and other South Asian regions, it’s customary to gift money in amounts ending in 1, as numbers ending in 1 are considered good luck.
Take your time, do your research, and come up with creative ways to gift money that pay homage to the graduate’s culture.
Type of graduation
Whether the graduate in your life is finishing middle school, high school, or college, cash gifts are a common way to celebrate these events. However, there is no cookie-cutter approach to the exact amount graduates should be gifted.
But the type of graduation does play a role in the general size of your gift. For example, college or post-graduate graduations typically merit more than high or middle school graduations. You might also factor in the graduate’s academic results. For example, meeting an agreed-upon academic goal or graduating with honors may bring a larger gift.
Remember: Focus on celebrating the graduate’s achievement and supporting their future endeavors. That means the gift amount might reflect both your relationship with the graduate and the significance of their accomplishment.
Average graduation gift amounts
According to the National Retail Federation, consumers spent an average of $116 on graduation gifts in 2022.
That said, how much you gift the graduates in your life is a highly personal decision that ultimately depends on your financial situation and comfort level. But here are some general guidelines to provide you with a little direction.
High school graduation
As we mentioned, how much money you give a high school graduate will depend on your relationship with the graduate and your financial situation. The closer you are to the graduate, the more generous the gift might be — with typical high school graduation gifts ranging from $30 to $200.
Our research shows that close relatives often give between $50 and $200, while friends or distant relatives typically give $15 to $50. Acquaintances or coworkers might gift $10 to $30.
Whether you choose to give cash, a check, or something else, the gift celebrates the graduate’s accomplishments and the beginning of a new journey.
College graduation
There are no hard and fast rules on how much money to give for college graduation, either. This reflects the range of relationships, locations and cultural norms among givers and graduates.
Parents and grandparents tend to give most generously to graduates, with typical amounts ranging from $100 to $500.
Other close relatives usually give between $50 and $250. Friends and siblings may give $25 to $50. Smaller amounts, like $10 to $30, are often appropriate for acquaintances or coworkers.
Send your graduation gifts with Western Union
Whether it’s a wedding, graduation, or a birthday, sending money with a provider like Western Union is a great way to honor some of life’s biggest moments. And it’s a lifesaver for last-minute gifts or occasions you can’t make it to in person.
Ready to get started? It’s as easy as downloading the Western Union app, sending money online, or visiting an agent location near you.
FAQs
There is no universal standard for how much money to give graduates you know. The appropriate amount for a graduation gift can vary according to your relationship with the graduate, local norms, and your financial situation.
However, here are some rules of thumb you can consider:
- For high school graduations, close relatives may gift between $30 and $200. For friends or more distant relatives, amounts between $15 to $50 are common. Acquaintances or coworkers might give $10 to $30.
- For college graduations, parents often gift $100 or more, close relatives $50 to $250, and friends or siblings $25 to $50.
Cash and checks are both acceptable graduation gifts. Some people dislike carrying cash or prefer checks for larger amounts. Ultimately, choosing between cash or a check is a personal and practical decision.
