To Party or Not to Party
Taryn Bradley
We are in the midst of graduation season and family and friends are ready to party, but how much does a good time cost? GraduationParty.com claimed the average amount spent on graduation parties nationwide is $985; this average comes from a range starting at $525 and pushing $6,500, all dependent on the quality of your party. A party that is lame might divert people from coming, just like a bad product lacks a high demand, and celebrating with a lower RSVP number means less money donated to the graduate. If there is not a large profit margin should the parents funding these parties instead cancel the party and put the money back into the child’s college fund?
Most people convince themselves that a grad party is worth the energy because of the cash they rake in. A party thrower may claim their profits exceed the cost of the party, making the event a success. However, these days parties are no simple task. You can not throw out a bag of chips and a few cans of soda and call it a day, there are high expectations. People plan months in advance by ordering expensive invites, renting venues, paying for entertainment and food, as well as buying a boat load of decorations to set the mood. Pictured below is a budget planner that highlights all of the moving parts of a successful graduation party
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The opportunity cost of skipping the party might be the fun of celebrations and some funding towards college. However, sending the announcements alone might rake in the same amount of cash as throwing an extravagant event. When graduation rates were low years ago, people threw grad parties because making it through high school was actually quite rare. Nowadays graduating is way more common (as seen in the graph below), so the grad party industry blew up. By 2013 average graduation rates rose to 81%, a record high. The graduation trend continues despite the fact that graduating high school has become customary. Had everyone decided to forgo their party a positive externality would be the stack of money safe in everyone’s bank accounts. Not only is everyone throwing graduation parties, but everyone is attending them as well. Let’s say a graduate makes a lot of money off their neighbors, it is possible that they are going back to their neighbor’s party in a few weeks to celebrate that student’s graduation. A circulation of money occurs that balances back out, causing no one to benefit. On the other hand, if one boycotts their own party they still might give to the funds of others and receive nothing in return. Either way this growing rate of graduates should pressure people to quit stressing the importance of graduation parties. This influx of graduates and their party could also contribute to the 5 billion dollar market for event/party planners that grows by 4.3% annually.
The benefits of a grad party are spending time with family and good feelings associated with opening up cards full of money, but only the bank account knows how much those benefits truly cost in the long run.
Works Cited
Bidwell, Allie. "High School Graduation Rate Hits All-Time High." U.S. News. U.S. News and World Report L.P, 12 Feb. 2015. Web. 23 May 2017.
"Hosting a Graduation Party?" Graduation Party .com. N.p., n.d. Web. 23 May 2017.
"Party & Event Planners: Market Research Report." IBISWorld. N.p., n.d. Web. 23 May 2017.
I'm not sure if a "lame" party would prevent people from coming. A lot of family members tend to go to graduation parties, and most family members come from at least two hours away. Parties are a time to congratulate graduates for all of their hard work, and I think people would feel like they're being rude for leaving because the party isn't as decorated or lively as they might have thought (it would be rude). Also, you pointed out that there might be a circulation of money, so why would the bank account suffer? I think you're right that the bank account would suffer, but there wouldn't be a circulation of money. Gifts go to the graduates, and graduates aren't usually the ones spending the money on the party in the first place.
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It is interesting that these grad parties cost so much, and for a truly great party all of these things need to be accounted for. However, couldn't the hosts send out an evite or something of the sorts to cut back on some costs that could be unnecessary? Another idea which has become very popular, is throwing a joint grad party, so that multiple families can save money on the costs, and there are more guests, and therefore more money sent as gifts towards the graduates. Overall though, the parties can get very expensive, and it might make sense to just skip the party and put that money towards college and buying the supplies you really want instead of the ones your family and friends think you want.
ReplyDeleteIn my perspective, a graduation party doesn't have to be that big and grand, especially since basically everyone graduates. There can be the occasional big and expensive one, but they don't really need to be much more than a small get together. It feels a bit excessive when an entire grad year hosts parties around the same time, which ends up causing conflicting times and friends needing to choose which parties to go to. That being said, in the interst of the student, the bigger the party, the more the gifts, and the more money that could be used towards college. Depending on how generous the people are, the cost of an expensive party could certainly be worth it in terms of getting extra funds if it can pass the budget for the party, making it a worthy investment.
ReplyDeleteGraduation parties can definitely cost a lot of money. However, spending time with family and friends is never a bad thing. Graduating high school, although more common now than in the past as shown, is still an accomplishment that affects the rest of someone's life. A high school diploma opens doors to better jobs. Better jobs mean more money. Although people spend a lot to celebrate, the most important part of the celebration is being with family and friends to celebrate the success you've had and the success that is hopefully on its way. A simple party will accomplish all of these tasks and will not cost a lot.
ReplyDeleteI think a lot of people don't even want to throw grad parties, but their parents or friends pressure them into throwing one. In an ideal world I'd love to just tell people I graduated and then they send me sealed envelopes with phat checks inside. Also, I wonder what the overall economic impact has been of rising graduation rates. If I had to bet, our national GDP graph probably somewhat resembles that graduation rate line.
ReplyDeleteI always knew it wasn't cheap to throw a grad party but I always thought it was worth it. It surprises me what some of the higher end parties cost. It seems as if these people don't want to make money but I feel like in these cases many of them don't intend to make money because they will have no problem paying for college anyway. However I disagree with the statement that you said people are less likely to attend lower end parties. I feel as if grad parties are a different kind of party that really only depend on the time and who the person is hosting the party. If it is a well liked person with a big family, they can make a lot of money without spending too much.
ReplyDeleteFirst, just gotta throw it out there, I love how you wrote that final sentence to conclude the topic. Very nice. Anywho, I've been to several graduation parties in the past, each one very different from the others. There was one for my cousin that had everything red and white, including a badger balloon, and the party was held in the kitchen and porch with food. As for another, I wandered around the house looking for cats before finally heading into the kitchen to grab a burger and later smashing a watermelon in the yard. That's all that happened at that other party; there were no decorations or buffet, just a sort of simple family cook out with a small handful of friends invited. My point is, no graduation party is the same because not only does it depend on the amount of money and time that the family is willing and/or able to spend on it, but also because each individual is different and has different tastes. Because of this wide range of differences between the individuals graduating each year, the "graduation party" section of the economy is not shooting through the roof with expensive parties or falling through the floor with swing-bys. Instead, having these differences helps to even it out to a fairly reasonable amount and keep it stable.
ReplyDeleteI disagree with the fact that a "lame" graduation party will detour people away. The graduation party isn't about how fun it is, it is about the graduate and spending some time with family and friends before you head out to college; it's about congratulating the graduate on their hard work in high school and making it into college. Yes, the graduate will earn a profit from this party with money and gifts, but that isn't what it is all about. I find that there are many more positive externalities than just making some money off family and friends.
ReplyDeleteAlso, yes. Some parents might go all out on their graduates party and loose some money in the process, but the graduate usually won't loose money. They aren't usually the ones paying for the party and a lot of the time, they don't give money to their friends at their graduation parties (well, because to be honest, a lot of high school students don't have a lot of money to spare because they need to pay for college!).
I did not even realize how much graduation parties costed and how much money a year the party industry makes from them. Personally I have no idea how much my parents are willing to spend on my grad party but I think its crazy that some people will spend $6,500 on a party just to impress others. I also completely forgot about the profit that some families make from throwing them so that kinda surprised me at first. Overall nice job.
ReplyDeleteI’m surprised that the average graduation party is so expensive. I knew that they could get pretty costly, however $985 is pretty expensive. I do agree with you in that the money could be spent on more effective things, such as sending the kid through college, which nowadays is pretty expensive in itself.
ReplyDeleteI agree that graduation parties are good way to bring in money, and lose it. When I graduate my twin brother will also be graduating so my parents will pay twice the amount of products that will go towards the celebration. They will have to buy more food and a larger space since we each have different friends coming. One positive aspect is that they get to rent a venue only one time. Also since there are two of us people might give us each less cash than they would for just one grad.
ReplyDeleteEveryone loves attending graduation parties and I am sure it's the same way with throwing them depict the money cost. Since I will be graduating this year I can relate to how everything you want at your party is costly. But I would have to agree that people could be saving their money and spending it on college base ideas or even college funds, but whats the fun in having no party?
ReplyDeleteConsidering the true origin of grad parties along with the high costs of actually throwing these parties, it’s easy to say that they’ve started to lose their appeal. Especially when looking at the seemingly endless cycle of money given to graduates at their parties. However, there are some options people have that can help make the cost of grad parties more bearable. For example, having a joint grad party with another person/friend or group of people. This way, everyone can split the costs. Regardless, I can appreciate the idea of grad parties in the sense that they celebrate someone completing a portion of their life and moving onto the future.
ReplyDeleteI have always been told that graduation parties are bigger then any birthday party you will ever have. I think that is a matter of perspective. But as graduating becomes more of a common thing happening now days people don't see it as special but there is always the opportunity cost, whether to spend the money and make the most out of you graduation, or to not spend the money and save it for further funds. There are always alternatives to having a graduation party as well.
ReplyDeleteAs someone who is still debating whether or not to throw their own graduation party, this topic really hits home. I totally agree with you on the fact that the point of a grad party is to spend time with family and friends (as well as get money from family members you didn't know you had). However, when all your family lives in different states, it gets hard to see that opportunity cost of even throwing one in the first place. Yes, you have your friends coming and spending time with you and that's all in good fun. However, being able to see family one more time before you travel off to college is very important too.
ReplyDeleteI agree with what charlie said about how many people don't want to throw graduation parties. I for sure don't because I don't feel like talking to relatives about school for three hours. Now that High School graduation rates are higher, and the amount of grad parties have risen, people may feel like supposed to have a graduation party. If you're having a grad party, odds are you're doing it for the money, or the food, it's not as common anymore to be proud of your high school career.
ReplyDeleteAs a senior whose graduation party is coming up, I can attest to the high costs. Just to get enough food for all your friends and family is expensive enough.
ReplyDeleteIt is very surprising how expensive a graduation party can be. Many companies that make invitation or graduation cards have a very high revenue during graduation time. Also companies that make paper plates and other disposable eating or drinking utensils make a lot revenue not only during graduation time, but in general during summer because there is a higher demand for these products since many parties have many people and tend to take place outside.
ReplyDeleteGraduation parties are a fun way to start the summer yet it involves heavy costs. These costs are often accompanied by all the stress associated with organizing a party of this magnitude. This leaves a heavy burden on the graduates parents, yet could have the potential for a large upside. This upside could be a large sum of cash towards paying for college. After all the planning and costs of the party, it is an enjoyable time to catch up with distant family and friends.
ReplyDeleteI didnt know that graduation parties were this expensive and people spend this much money on them. I get it that it the last fun as a high schooler going into either college or the workforce. But I didnt know that people spend 900 dollars on a party.
ReplyDeleteI never really thought about how much it will cost to have a graduation party. A good way to cut costs is to make your own food or ask guests to bring a dish to pass. Decoration can be created by you and your family as well. I know for my graduation party we will be finding ways to cut costs but still have a good time. Thankfully my parents will be willing to help me enough that they will be spending their time and money to help me receive money for college (opportunity cost)
ReplyDeleteI think graduation parties can be harmful, but also can be helpful. When tons of people come, you do open the doors to more income from cards and gifts, but also open to doors to more spending to meet the needs of all the guests. Sometimes, people feel the need to invite everyone they have ever talked to to their graduation parties, and that is when they risk spending a lot of money for people who aren’t willing to return it. There needs to be that right amount of people, so the income is higher than the spending to make the party successful. Also, I totally agree with the cash circle idea, maybe I’ll sign a dollar bill and see if I get it back after the grad party season.
ReplyDeleteGraduation parties are a great way for family members and friends who one might not see very much to come for a visit and congratulate the grad. Although graduation is becoming more common and grad parties used to be used as a congratulations, the grad still has put in a great deal of work to 1) have graduated and 2) have determined and settled on what their next step is. Despite the great sum of cash that the family of the grad will have to pay for the party, they can benefit greatly from the gifts that the grad will receive from guests who are trying to give them some money to start off a new way of life.
ReplyDeleteAlthough graduation parties have become a customary tradition, I didn't ever think that in past years they held more importance, because less students were graduating back then. Graduation parties now have become a popular event, because the prices of college are steadily increasing and this provides a chance for the new students to make a small profit to help them begin their college experience. There is a lot of time and money that can go into these parties and make them outweigh the benefits, especially now that people try to have the most creative or most attended party almost as a popularity thing. Overall though graduation parties provide an opportunity to celebrate the hard work that students have put in over the years and to celebrate all that is ahead of them for college.
ReplyDeleteI know you said there's a 5 billion dollar market for party planners, but I feel like not many people hire a party planner for a graduation celebration. It's honestly not that expensive to blow up a couple balloons and cook up some food... and in the age of social media, you don't really need to send out too many hard copy invitations. I feel like it's not that large of an expense especially when grads usually recieve hundreds to thousands of dollars in gifts at the celebration. Ultimately, I just believe there are more pros than cons...
ReplyDeleteThis is a very good point! Graduation is an exciting time and it is nice to celebrate with friends and family and recognize their hard work, yet the opportunity cost is spending money of supplies and food when that money could instead be going towards college. Depending on where you get the invite and how many you send out, that could amount to over $40 easily, not to mention that you still need to fund food and drink for everyone, as well as utensils and supplies. Grad parties are fun to go to and I am looking forward to going to many this summer, but from an economical standpoint, I can see why some families think the opportunity cost of having a party might not be worth decreasing their funds for college.
ReplyDeleteThis is a very relevant post because it is the season of grad parties. People will be spending all sorts of money on these parties and opportunity cost of not throwing one is almost too great for someone to pass up on the festivities. The marginal benefits of not throwing one would help you in the long run with college expenses. It would be interesting to see the amount of money in gifts that people spend on these parties and how that affects the economy.
ReplyDeleteLike so many other seniors, I am planning for my grad party. Grad parties are expensive from the food, drinks to the decorations, invitations, etc. People are willing to spend the money because graduating from high school is a once in a lifetime experience and a definite cause for celebration. Besides the grad party, some of my family is flying in, which is another cost of graduation. The opportunity cost of the money spent on a grad party is worth the memories and celebration. Even though the circulation of money may break even from spending and receiving, there is still a benefit through tangible gifts, but there is also the gift of being in the presence of family and friends, which is really what a grad party should be about.
ReplyDeleteI also kinda struggled to decide whether it was worth it to have my own grad party. Not only was the cost daunting, but as you said, it's also extremely time consuming. However, I think there are more benefits to actually hosting this event, including the opportunity to see family that lives in different states/countries. Also, there are lots of families that I am friends with, but don't talk to often. If it weren't for a grad party invitation, they probably would not have given me any money to begin with. Therefore, there are some financial benefits to having a grad party.
ReplyDeleteIt's true that the money you receive may only make up for the money spent for the event. Since that is the case there's no harm in throwing a party to say goodbye to all of the family friends you most likely won't go out of your way to see when you come home. The one issue is that you'd be depending on the money brought in to make up for all of the food and invites. If the gifted money wasn't to make up for the money spent the graduate may not notice depending on how the parents handle the gift money. If the plan is that the kid gets all of the money and they can do whatever with it, then that's a win for the kid because they got a party and the money. If the parents plan on taking all of the money from the kid to go toward books and other costs then that's an actual profit from the event. Many people this year are having either a small party or no party then in return the parents are buying the graduate something like a laptop or big gift. This would be the more economical option because you don't risk losing money, you still spend a great amount of money, and the money being spent is going toward something important.
ReplyDeleteYour post had some very interesting points that I never thought about for this time of the year. Grad parties are a huge thing now compared to back then. However, I feel like graduating high school today is still really important as well. I don't really see grad parties as a way to fundraise money, I see them more as a time to celebrate with family and friends your great accomplishment. The graduation rate might be rising but that still doesn't even show anyone how hard graduates worked to get through high school and figure out their future. Overall I think that having a grad party might create some costs, but it also creates memories.
ReplyDeleteThe perspective that you have brought up is very interesting. I always thought that seniors should and would have a graduation party but when you add up the costs and time associated with the planning there many be a point to possibly forgo one due to the opportunity cost that is associated with it. As a whole, these parties have an impact on the economy as there would be an increased supply and demand which as a continued effect on complements and thoroughly have an impact on the nation’s GDP.
ReplyDeleteTo me, the opportunity cost of a graduation party is worth it, because it's another reason to see family that I typically don't. Although parents pay for graduation parties, they kind of pay themselves off, because the amount of money you get in cards to pay for college is that much less that you or your parents have to contribute to tuition.
ReplyDeleteIn my opinion graduations are totally worth it. Who doesn't love seeing family and friends and celebrating an important time of someones life? I know I do. Jenna does make a good point too as although they do cost money, the money the student gets from people attending will definitely help them pay for some books in college.
ReplyDeleteIt seems like people are spending more and more on graduation parties because there is competition between the numerous grad parties and because people want to celebrate the end of their high school career. I agree, it's crazy that people have such a high profit margin because then any gifts they receive are just covering the party. However, parties have such a positive externality because people are happy having a celebration and it's totally worth it.
ReplyDeleteOne of the biggest influences on whether or not a grad party is worth the cost is the type of people you invite. If the guest list is comprised largely of other graduates, you’re likely to lose out on potential income. If you have a good balance of friends and family, I believe you’ll either break even or actually pull in revenue.
ReplyDeleteWhen I think of a graduation party I think of a chill kickback with the boys and some family members, so I find it extremely surprising that people spend this much money on their parties. It's hard to see very many people's profits exceed their costs with prices this high for parties. However, it's important to know where you're getting the information from. GraduationParty.com, being a premium party supplier, is likely to record higher averages than actual averages as people who spend less on their graduation parties are much less likely to even visit sites like GraduationParty.com to buy supplies. Along with this it's possible that GraduationParty.com manipulated their data in an attempt to regularize higher spending levels per event in order to increase the actual average money spend on grad parties to increase their own profits.
ReplyDeleteI completely agree that often times parent's will spend too much on their son or daughter's grad party. However, I think a balance is possible to obtain. I think grad parties are more than just money makers I think it is a time to celebrate the accomplishments. Money will be spent but memories last forever. This is a positive externality that will outweigh the opportunity cost of the expenses.
ReplyDeleteGraduation parties are very worth the cost because the amount of profit that comes with it over extends the cash that your are going to get to put in your college fund. From family members giving you money to not only pay off the party but to celebrate your achievement to passing high school.
ReplyDeleteIn my opinion, graduation parties are worth it. You get to see family members that you don't see that often and you some money to put towards college, which allows you to save more money for the future.
ReplyDeleteAlthough the viewpoint that either having a graduation party or not are the only two options, there are plenty of other options to commit to. If there is a worry about financing for colleges, the option of having a cheaper, more casual graduation event is there. Graduation parties do not have to be all extravagant and held at the most prestigious ballrooms in order for it to be a good event. Something simple like going to get some ice cream with friends and family could be good enough as an event. All of these assumptions that you have to pour out hundreds and hundreds of dollars to produce a quality graduation party are false. A simple and cheap event will do just as good as someone who goes all out as it is the purpose of the event, celebrating the scholarly accomplishment of graduating high school, that should matter most to people.
ReplyDeleteJaeger
I think that was good point to make that the graduation rates are increasing so these events are not very obsolete anymore. People have blown so much money on these parties so I don't know if it is worth having them if you could save that money for college, despite the fact that it is the graduate's parents money. The other thing is graduation parties are so awkward. Basically a bunch of people congratulate you and you have to greet everyone that comes.
ReplyDeleteWhen it comes to grad parties, it is kind of a must. Graduation parties are a great way for family and friends to gather and celebrate the graduate. Whether the cost of having the party increases or decreases people are still going to continue to throw these parties. Just like in previous post about holidays, just because the price was raised does not mean people are going to end the tradition. For most people, the benefit of having a graduation party out ways the cost.
ReplyDeleteThe last two graduation parties that I attended were very comparable. I think they are so fun to go to and see what food the host had, the games and activities, everyone there, and the table set up of the graduates accomplishments. Both of the parties I attended, went all out and it makes it a very fun time. However, I can't imagine how much money they spent on decorations themselves. This is why it's important to budget accordingly to try and save the most money. If you use the most products you can that you own, borrow as many goods as you can from friends and family, be creative with the decorations, then hopefully the majority of money is spent on food. I wonder what the specific items are (at a grad party) that people spend the most money on. I also wonder how many of those items are not necessary or could be substituted by something else.
ReplyDeleteOkay, I gotta be honest... what in the world type of graduation party are you having? The reason you're saying it costs so much it because of how much you feel you need to put into it. A graduation party is not your bachelor party--it can be simple and still be fun. You're just celebrating the fact you're getting out of high school, you don't need to make it one big blow out. But of course that is your own choice to make if you want that kind of party (for whatever odd reason...). If you care more about the things at your party then the actual fun and celebration of the party, your party isn't really successful to begin with.
ReplyDeleteI would not have expected graduation parties to cost that much! I was thinking maybe $200, but not nearly $700. That seems like too much. However, it is completely worth the memories that are made, not to mention almost every person who shows up brings a gift. While I've never been to a graduation party, I will be experiencing one for the first time over the summer. It'll be interesting to keep in mind that graduation parties cost so much.
ReplyDeleteThis kinda makes me want to send out graduation invites and through a bigger party than I am. I never thought that people would I guess feel obligated to show up or at least send money. It's crazy the amount people spend on these parties and the amount people receive from these parties. I'm not supper social and don't have a huge family I don't come from money so this would be so beneficial to me and my future, not just me but anyone that doesn't exactly have the funds for collage and don't think they can go to collage because of lack of funds. This idea should be prorated and advertised to those students to try to encourage them to get future education.
ReplyDeleteThis kinda makes me want to send out graduation invites and through a bigger party than I am. I never thought that people would I guess feel obligated to show up or at least send money. It's crazy the amount people spend on these parties and the amount people receive from these parties. I'm not supper social and don't have a huge family I don't come from money so this would be so beneficial to me and my future, not just me but anyone that doesn't exactly have the funds for collage and don't think they can go to collage because of lack of funds. This idea should be prorated and advertised to those students to try to encourage them to get future education.
ReplyDeleteIn my opinion, graduation parties don't have to be extravagant and expensive. No hate to anyone who wants to go all out, but lately there's been more and more pressure to have the biggest and best parties. Obviously businesses benefit more from people who spend more on invitations, catering, decorations, etc. Grad parties have grown in importance because more students are graduating now than have been in the past, not to mention that you only graduate once. For me, at least, my grad party will just be my friends, because my entire family lives on the other side of the world, so the cost for me will be lower since I'll spend less on food and invites.
ReplyDeletePersonally, I find graduation parties to be totally worth it; it's one last chance to celebrate your accomplishments throughout high school and prepare for the future ahead. I don't find it necessary to go all out for a graduation party, however. It's not important to be showy when the party is to celebrate what the graduate has accomplished. In the past years combined grad parties have been a popular thing which may save families money as they have to spend less money on decorations and food.
ReplyDeleteI can see how one might need to look at the cost of what the party will be and the graduation money they will bring in, the benefit, to determine if the party will be worth it. With my grad party, my parents are paying for the food and supplies, so any money that I get for graduation will be profit for me, so for me it is worth having a grad party. Also, with some families it is an expectation to have a grad party, so they just have to try to find a way to do it as cost effectively as possible. I can see how some extravagant parties might not be worth the money they put into it, but if you do a simple party with the normal necessities then you should be able to make money off of the party, or at least break even with your cost benefit analysis.
ReplyDeleteI could see this coming. My brothers graduation party cost us $1000 so seeing that some/average is $700 seems pretty realistic. I think the price indeed is too much but It's something you only have once in your life so I guess its how you perceive it as. At the least you spend money which in turn helps the economy so I suppose it isn't all that bad in the end.
ReplyDeletePerhaps it is just me, but it doesn't seem like having expensive grad parties are as common as you make it seem. Parties that are costing as much as $1,000 have got to be from the wealthy that have money to waste. Even $500 seems to be a lot unless it's a wedding party or something. Money doesn't buy happiness--you choose how you have fun, not the amount of money you spend.
ReplyDeleteI think that graduation parties are a pro and con. There is no secret when talking about the cost of a party. With extra costs like decorates to invites and food, the total cost of the party almost seems endless. Not to mention the hassle and stress that they cause with trying to organize it and pick a good date that works for everyone. However, when people show up, it gives more of an opportunity to make income from the fits and cards people give. Although the cost of the party might be equate to the money the graduate brings in, I think the most important part of a graduation party is spending time with family and friends, celebrating the success and accomplishments of the graduate and preparing to send them off to college. Overall I think that graduation parties are fun events to attend. I know that I am looking forward to my own and my friends this summer. That being said from a economical point of view I understand why some people choose not to have a party because they think the opportunity cost is not worth it.
ReplyDeleteAlthough graduation parties may be quite expensive, some people think that there are more benefits of having them rather than costs. Most people think of the memories and good times created at these graduation parties with family and friends which outweigh the costs of having one. It all depends on how much one's willingness to pay for throwing a party is. Some people have simpler parties which don't cost as much while others might like to have huge ones. In the end, it comes up to the decision the person throwing the party makes.
ReplyDeleteI think it is important to account for the opportunity cost if a person chooses to not have a party. They miss out on a great opportunity to celebrate and have a good time with family and friends, although it may cost money, people don't do it just so they can get money in return, they do it so they can share a big moment in their lives with others.
ReplyDeleteI think there is quite a wide range when it comes to the extent people go regarding grad parties. Some people go all out inviting dj's and lots of activities where others have a small get together with close family and friends. However, in both scenarios, money is spent and therefore there is an opportunity cost to spend this money rather than save it. However, the more they spend on the parties and the less they save, there will be an increase in Real GDP due to the increase in consumer spending.
ReplyDeleteI think although it's nice to get donations from your grad party, I don't think that's the only reason to have one. I think the point of a grad party is to have fun with your friends and family and celebrate your graduation. I think the opportunity cost of not having a party out weighs the margins.
ReplyDeleteSince I am not a senior, I had no idea about graduation parties until I read this article. High school graduation is one of the most fundamental steps that students achieve and it represents their determination in moving forward in life. I also agree the fact that students should celebrate for their accomplishments and spend time with their family before they leave to college, but does that mean that everyone should spend a lot of money to gain money in return. Personally, I would not gain anything because I probably going to get same revenue or profits to the costs I spent on my party. Graduation parties should not be treated like business, they should create positive externality to the person who was graduated and the people around that person.
ReplyDeleteI never expected graduation parties to cost $700 but there are probably a lot of hidden fees that someone who hasn't had their graduation party yet, like me, wouldn't really be aware of. I totally think that it's worth it because for one, I'm not the one paying for it, and two, high school graduation will only happen once and I think it's important to go all out for it.
ReplyDeleteAlthough grad parties are for the graduate and supposed to celebrate them. Sometimes the parents and parents friends get just as much out of it as the kids. Especially the more expensive grad parties. As well as they are tradition so even if it is not big most kids will always have some sort of even if it is just family.
ReplyDeleteGraduation parties are a lot of work, and they do tend to rake in some cash, but they do not exist purely for financial gain. In many cases, it is a good opportunity to attract family members and friends from all around for a simple gathering in celebration. The money comes second, although it really is quite fun to open cards full of cash.
ReplyDeleteMost graduation parties are good, but only because they are celebrating a student graduating, and not for any economic reason. The cost of hosting and running one of these parties is quite large as you mentioned, but the marginal benefit received from each individual is not worth the costs incurred by running one of these parties. While most attendees do enjoy themselves at these parties, for the most part they don't have enough fun to make it worth the high price of running the party.
ReplyDeleteIt is interesting that the average person spends up to $985. That is a substantial amount of money. However, I personally think that graduation parties are worth it. It is an accomplishment that seniors should be proud of because they are ending one chapter of their life and starting a brand new one. Graduation parties allows students to get some extra cash before they start college. College is expensive, and what better way of getting money than throwing a party. You get to spend time with friends and family to celebrate your accomplishments, open the door to your future, and get some money to push you in the right direction.
ReplyDeleteGraduation parties are definitely something many people look forward to when they graduate. I did not know how much money some people spend on their grad parties, but if you really think about it, the total ends up making sense. I personally am not having a grad party since it is more expensive and I would rather spend that money on something else or for college. If the average person who spends up to $985 on a party put that money towards college, it would help them in the future.
ReplyDeleteGraduation Parties is something everyone looks forwards to, wether its a family member's, friend's, or your own. Even though I am only a Junior, I am looking forward to at least some graduation parties this year. What I know of graduation parties is the gifts that the host receives. My sister had a shared graduation party last year, and she was able to get around $1,000 worth in gifts from friends and family members. Going along that note, if someone spends $985 on a graduation party, and they get roughly $1,000 worth of gifts, the were able to get a profit off that grad party, and save that extra earnings for college.
ReplyDeleteGraduation parties may see an increased demand due to consumers' sentimentality and social expectation to host a party for graduates. Many consumers are willing to spend a little extra money in order to make their children feel accomplished and help them celebrate their achievements. Some families also use the opportunity to have a reunion of sorts with family that they don't see very often. I was surprised that the minimum amount spent was $525, I would have thought that some people would host a smaller grad party with proportionally less guests.
ReplyDeleteGraduation parties have almost become a requirement over these past years. Graduates are expected to entertain guests with something new and different than the sum of other parties. Whether it's the food, games, or decorations parties have gone more and more over the top. It's interesting how much money people spend on these parties, especially when some people require you not to bring gifts or donate the money to a charity. Yes, the causes are something to root for and it's amazing to be so selfless, but in a time when every penny matters for college, is it really worth it? Personally, the gifts are a cool part but being able to celebrate with family and friends exceeds all of it.
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