Fewer people will buy graduation gifts this year (31.4% vs. 32.5% in 2009), but each gift giver will spend slightly more, according to the National Retail Federation's 2010 Graduation Consumer Intentions and Actions survey, conducted by BIGresearch.

Gift givers this year will buy for an average of two graduates, spending an average of $89.95 on gifts, up slightly from $88.01 last year. Total graduation spending this year is expected to reach $3.9 billion.

Practicality has ruled in recent years as consumers opted to give cash. This year, however, gift-givers say they will once again invest in apparel (11.4% vs. 9.9% in 2009) and electronics (10.6% vs. 9.0% in 2009). But cash will still be the most popular gift option (58.3% vs. 58.9% last year), and more people (31.6% vs. 29.4% last year) will also give gift cards this year.

"Many young adults, who are impacted by a lack of summer employment options or struggling to find an entry-level job out of college, realize that monetary gifts offer the flexibility to buy everything from college textbooks to furniture for their first apartment," said Matt Shay, NRF president and CEO.

The survey also found that gift-giving among young adults is far different than other age groups. Young adults are more likely than others to give apparel for graduation (24.9%), compared to 11.4% of all adults over 18. Young adults are also far less likely to give cash, with 49% of 18-24 year olds giving cash compared with 58.3% of all adults.

"Young adults, who may be graduating themselves, want to acknowledge special events in their friends' lives with gifts, but are spending on a budget," said Phil Rist, executive vice president, strategic initiatives, BIGresearch. "Many young people buying graduation gifts will opt for greeting cards, college apparel or other inexpensive items to say congratulations."