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Graduation is an exciting milestone—and if you’re one of the many high school or college grads who received financial gifts from family and friends, you might be wondering: What’s the smartest way to use this money?

Whether it’s $100 or a few thousand, how you use your graduation money can have a meaningful impact on your financial future. So, keeping that in mind—let's look at some smart, practical ways to put your graduation money to good use in 2025 and beyond.

1. Create a Simple Spending and Saving Plan

Before you treat yourself to something fun (and yes—you should!), take a few minutes to sketch out a basic budget. Think of your graduation money as a launchpad, not a windfall.

Here’s a simple rule to follow:

• 50% for future you – Savings, emergency fund, student loans, or investing
• 30% for all the essentials – Textbooks, work clothes, college supplies, apartment items
• 20% for the fun – A weekend trip, a new gadget, or a well-deserved night out

Why this matters: Splitting your money this way helps you enjoy your gift while also building a strong financial foundation.

Middlefield Tip: Open a checking and savings account to separate your “spend now” and “save for later” money. This makes it easier to avoid accidental overspending—and you’ll earn interest while you plan your next move.

2. Start an Emergency Fund

Unexpected expenses happen—especially when you’re just getting started with college or adulting. Leaky pipes, a broken phone, or a surprise medical bill can throw off your budget.

Your goal: Save at least $500 to $1,000 for emergencies. This creates a cushion you can fall back on, so you don’t have to rely on credit cards or loans.

Where to keep it:

• A high-yield savings account offers easy access to your funds while earning interest.
• Make sure it’s separate from your checking account so you’re not tempted to dip into it for non-emergencies.

Middlefield Tip: Our savings accounts are built for young adults who want to grow their money responsibly—with no hidden fees.

3. Tackle or Prepare for Student Loans

If you’re a college grad with student loans—or a high school grad heading to college—graduation money can be a smart tool to reduce debt before it snowballs.

• Already have student loans? Make a lump-sum payment toward your principal to reduce interest over time.
• Heading to college? Use the money for textbooks, tuition deposits, or supplies to minimize what you’ll need to borrow.

Even small payments now can lead to big savings later.

Middlefield Tip: Consider setting up automatic payments through your checking account to stay on top of loans and avoid late fees.

4. Invest in Your Future (Literally)

If you have a few hundred dollars or more left over, consider using part of your graduation money to start investing. Yes—even if you’re still in school.

Some great beginner options include:

• Roth IRA – Contribute after-tax dollars now in a Roth IRA and enjoy tax-free growth for retirement.
• Micro-investing apps – These let you start investing with just a few bucks.
• Certificates of Deposit (CDs) – CDs are ideal for short-term savings with guaranteed returns.

Middlefield Tip: Not sure where to begin? Our team can help you explore investment options that make sense for your age, goals, and risk comfort level.

5. Make a Smart Purchase That Sets You Up for Success

Sometimes spending money is the smart move—as long as it’s purposeful.

Consider using part of your graduation money for items that support your goals:

• A reliable laptop for school or job hunting
• Professional clothing for interviews or internships
• Furniture or kitchen basics for a new apartment
• Online courses or certifications to build career skills

Middlefield Tip: Use a Middlefield Bank credit card for these purchases to start building credit and earn rewards on money you were already planning to spend.

6. Build Your Credit the Right Way

If you’re over 18, graduation money can help you take your first steps toward building credit—a crucial piece of adult financial life.

Here’s how to do it responsibly:

• Apply for a student or secured credit card
• Use it for small, regular purchases like gas or groceries
• Pay off the balance in full every month

This shows lenders you’re responsible, which can help you qualify for better rates on auto loans, apartments, and even future mortgages.

Middlefield Tip: Ask us about our student-friendly credit card options that help you build credit history—without the fees or confusion.

7. Save for a Big Goal or Experience

Graduation is just the beginning. Maybe you’re dreaming of a backpacking trip, a first car, or a down payment on a new apartment. Setting aside a portion of your gift now can make that goal a reality sooner.

Set a clear goal (with a dollar amount and timeline), and then automate monthly contributions into a goal-based savings account.

Examples:

• $1,000 toward a study abroad experience
• $500 for a move-out fund after graduation
• $250 for a career-boosting conference or event

Middlefield Tip: Open a separate savings account just for your goal and nickname it—like “Future Europe Trip”—to stay motivated.

8. Give Back or Pay It Forward

A small portion of your graduation money can be used to support something bigger than yourself. Whether it’s a donation to a cause you care about or helping a younger sibling with school supplies, giving back can feel just as rewarding as spending.

Middlefield Tip: We love seeing young people get involved in their communities. Ask about local causes we support or ideas for getting involved through your bank.

The Bottom Line: Graduation Money Can Go a Long Way

Graduation gifts might seem like free money (and they kind of are), but how you use them matters. This could be the first step toward lifelong financial confidence—whether that means growing your savings, preparing for college, or learning to build credit.

At Middlefield Bank, we’re proud to support Ohio grads as they move on to their next big thing. From checking and savings accounts to credit-building tools and financial guidance, we’re here for you—just like your friends and family who celebrated your big day.

Stop by your local Middlefield Bank branch or visit middlefieldbank.bank to explore your options and start building a brighter financial future.

Congratulations, graduate—your next chapter starts now!