Family and friends of graduates are opting for the versatility of cash instead of gift cards this year. According to the 2009 Graduation Consumer Intentions and Actions survey, conducted by BIGresearch for the National Retail Federation (NRF), 58.9% of Americans who will buy for graduates will fill envelopes with cash, up from 56.8% last year. Just 29.4% will give gift cards, down from 32.2% last year.

The survey also found that Americans will spend an average of $88.01 on gifts for an average of two students, down from $99.79 last year. Total spending on graduation gifts is expected to reach $3.9 billion.

"Many students will pool graduation money for major purchases like electronics, furniture and house wares," said NRF president and CEO Tracy Mullin. "Young adults will have tremendous buying power in the next several months."

The survey, based on a May poll of more than 8, 000 consumers, found other popular graduation gifts to include greeting cards (37%), electronics (9%) and apparel (9.9%).

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