Class of 2017, Here are 5 Genius Ways to Use the Cash You Got at Graduation
This year’s crop of fresh-faced graduates have a lot to look forward to. New job or school opportunities, maybe a party or two and, of course, gifts.
No fibbing, grads. You know one of the only things getting you through that last round of finals was the promise of a good celebration and a few presents for all your hard work.
Whether you’re the giver or the recipient of a gift during this graduation season, listen up.
I have some advice for you.
The Gift Grads Really Want
Gift givers, the graduates in your life are too polite to tell you this, so I’ll say it for them.
College Time’s Madison Rutherford sums it up best. “Let’s be real here: What we really want is cold, hard cash so we can buy the crap we really care about, like Chipotle and PBR.”
How Much Graduation Gift Money Should You Give?
First of all, let’s get one thing straight, gift givers: You’re under no obligation to give a present — cash or otherwise — to anyone.
If your budget doesn’t allow for it (or you just flat-out don’t want to), a heartfelt card or note is just fine. (Right, grads? Right?)
If you do want to give the gift of money, though, you’ve got a lot of company.
According to the National Retail Federation, more than half of the people who give graduation gifts prefer to hand out cash.
When you’re deciding how much to give, here’s a good rule of thumb: Based on a 2015 NRF survey, the average cash graduation gift is around $100.
What Should You Do With Your Graduation Gift Money?
Grads, I’m going to go all mom on you before I offer suggestions on what to do with the cash you get.
Before you spend or invest a dime of that money, send thank-you notes to everyone who gave you a present. Do it.
Now, I wouldn’t be a responsible Penny Hoarder if I didn’t suggest that you set aside a portion of the money to start building an emergency fund.
You can also:
- Give a little of your windfall to charity because helping others is good, and you’re cool like that.
- Park it in a free checking account and let it start earning interest. Aspiration is one of our faves and features up to 1% interest, 100 times more than most banks.
- Start your own business. This woman made $700 a week with a $50 investment.
- Invest in the stock market. Stash walks you through the process and lets you get started for only $5. It also gives you $5 to invest when you sign up through this link.
- Begin planning for your retirement because it’s never too soon. Seriously.
Of course, we all need to cut loose a little bit and reward ourselves for a job well done. Take a little bit of the money you got and splurge on something nice for yourself. You deserve it.
But first, write those thank-you notes.
Disclosure: Some of the links in this post may be affiliate links. We’re letting you know because it’s what Honest Abe would do. After all, he is on our favorite coin.
Lisa McGreevy is a staff writer at The Penny Hoarder. She’s been both a graduation gift giver and recipient. She thinks giving is much more fun.