Oh! The places you’ll go

Every spring, as Pomp and Circumstance Marches fill the air, graduates walk down the stage to receive their diplomas thinking of their future, how proud their parents must be…and how embarrassing it would be if they tripped.

With all those profound thoughts running through their heads, many are also eagerly anticipating opening dozens of graduation gifts from family and friends. But according to NRF’s latest Graduation survey, conducted by BIGresearch, graduation cards won’t be stuffed with as many dollar bills as they were in years’ past as gifts are being impacted heavily by the economy. The average gift-giver is expected to spend a total of $88.01 on graduation gifts this year, down from the nearly $100 they spent last year.

There’s one gift graduates can anticipate: cash. About 59 percent of people said they will give cash this year, up from 57 percent last year, while the number of people giving gift cards declined by almost the same amount.

Why the shift? In this economy, practicality rules the world. Americans buying graduation gifts decided it’s more important to let the graduate choose what they want, providing the versatility needed so students can save up for one big purchase or use the money to make smaller—and necessary—purchases along the way (think books and gas). Young adults can easily use cash as a way to furnish their first dorm room, as a deposit on their first apartment in the real world, or simply as added cushion for their savings account.

One thing we’ve noticed is that even young adults aren’t immune to what’s going on out there. Summer jobs are scarce and college-age adults are also having a hard time finding jobs. With that in mind, many graduates will head to discounters first or comparison shop heavily before buying in order to find the best deal possible. Others may use their gift money as a “landing pad” in case they can’t find a job or are forced to live with mom and dad.

Either way, graduates have a world of options when it comes to how to spend graduation money. And when they choose to spend that cash—on large or small purchases—they can rest assured that retailers will have their shelves stocked with all their needs and wants.