How to Make the Most of Your Graduation Money
Play it smart with your graduation money and other financial windfalls after high school. Check out our tips for making the most of gifted funds.
Personal Finance
College & Trade School Preparation
First—congratulations! You did it! You officially graduated high school, and that’s a huge deal. We’re so proud of you, and we hope you’re proud of yourself, too.
As you celebrate this big milestone, you might find yourself receiving graduation gifts, especially cash. It’s exciting, right? But once the cards are opened and the money’s in your hand, the big question hits: What should I do with it?
Let’s break down a few smart ways to make the most of your graduation money.
1. Start an Emergency Savings Fund
One thing a lot of college students say they wish they had? A savings account for those unexpected life moments. Whether it's a surprise expense at school, a car repair, or needing to buy last-minute supplies, a savings cushion can be a total game-changer. (Here are some of our best tips for building your emergency fund!)
Ask yourself: how much would make you feel secure? There's no perfect number—it depends on your personal situation. Not sure what’s realistic? A often referenced rule of thumb is if you suddenly don’t have income you want an emergency savings to cover 6 months of expenses.
2. Put It Toward Tuition or School Supplies
Another smart move: use your grad money to cover school-related expenses. Whether you’re headed to college, trade school, or another program, those costs add up fast. A great way to make sure these funds only go to school expenses would be to put that money into a 529 plan. Each state has a different plan for their residents and can be referenced here—see Indiana's here and Ohio's here.
Your money could help pay for:
- Tuition and fees
- Textbooks and laptops
- Room and Board
3. Your Money, Your Choice
At the end of the day, this is your money. You get to decide what’s most important right now, whether that’s building financial security, investing in your education, or if you aren’t going to college, getting a head start to your next savings goal.
These are just a few ideas based on what past graduates have done. You might have other plans—and that’s totally okay!
We’re always here to help you navigate your finances. Get in touch with our Youth & College Support Team today!