Less Pomp, Same Circumstance? 2013 Grads To Receive Less Cash

This year, students from all across the country will tweet, text and post viral videos about their graduation, maybe even sending a few fleeting embarrassing pictures along the way.

But despite the technological advances that this year’s graduating class are privy to, a majority of parents and relatives – 56.7 percent – will be rewarding their children for their long hours of studying the same way they always have: with paper envelopes filled with same-old paper cash, according to the National Retail Federation (NRF).

Conducted by market research provider BIGinsight, the NRF report indicates the average gift giver will spend $49 for every high school or college graduate in their life, a figure that’s down from the $51 the survey observed in 2012.

Total spending is expected to top $4.6 billion for the Class of 2013, but gift givers will also be turning to other cash alternatives to show their admiration for the new post-grads in their life. In this PYMNTS.com Data Point, we’ll break down the statistics to see how this year’s graduating class is being rewarded for their years of hard work.

Cash Is King, But Other Popular Gifts Are Close Behind

A majority of U.S. adults say they will be giving cash this year, and this was common across most of the demographics surveyed. That said, cash wasn’t the preferred gifting options for Americans 18 to 34 years old, as a majority of the respondents said they will likely only give cards.

After cash, 2013’s graduates are most likely to receive congratulatory greeting cards, with 42.8 percent saying they will be gifting through this method. This was followed by less popular options such as gift cards, electronics and apparel, which are expected to be given by 32.1 percent, 11.9 percent and 10.7 percent of the nation’s gift givers, respectively.

Total Spending Per Graduate

The average U.S. adult will give $94 to the graduates in their life this year, though the exact amount they would receive differed greatly depending on the sex and income level of the giver.

For example, men reported to spending on average roughly $50 per graduate, while the women surveyed said they would only give just over $47. Similarly, those earning more than $50,000 said they would be giving on average $56 while the report found that those making less than this earning bracket they would be spending only $42.77 on average.

Similarly, the NRF revealed that the older the age group, the more the gift giver was likely to spend per recipient. However, surprisingly, the data suggests individuals in the Northeast region of the United States may be more appreciative of graduates – or more used to paying for a higher standard of living. Individuals in this part of the country indicated they would spend almost $20 more on average than those in the Midwest, South or West.

Did The Class Of 2013 Out Earn Last Year’s Grads?

The NRF data suggests the Class of 2012 may have picked the right time to graduate. Last year, the average gift giver planned to spend $100 in total, a figure which dropped to $94 this year. Though, this was up from 2011, when the average American spent just over $90 on the graduates in their life.

To see detailed graphs that can put these year-over-year statistics into perspective, click here.