For many Americans, the final year of high school means more than getting a diploma. Senior year has long served as an unofficial transition from childhood to adulthood, giving teens one final chance to revel in their youth before being thrown into the “real world."
As such, senior year can be one of the most memorable periods of one's life—but also one of the most expensive. Once-in-a-lifetime events (like prom and graduation) come at a cost, as do senior pictures, yearbooks, trips and other senior-year experiences.
How can families plan ahead to help their children launch into the next phase of life? Read more about what expenses are common for high school seniors, when to start saving and how to cut costs to minimize the strain on your household budget.
What's the Real Price of Senior Year?
To get started on a senior-year budget, it's helpful to know what common expenses families will encounter during 12th grade.
Graduation
The graduation experience is more than walking across the stage. Common graduation-related expenses include:
- • Cap and gown
- • Pictures
- • School graduation fees
- • Graduation outfit
- • Graduation party
- • Graduation invitations
College expenses
It's no secret that a college education is expensive, but the costs start well before your child enrolls. If your child is planning to attend college immediately after high school, be prepared to pay for:
- • College applications
- • Test registration fees
- • Transportation, food and lodging for campus visits
- • Enrollment deposits
The average college application fee is nearly $45, but some schools charge as much as $100.1 The base cost for the SAT is $60,2 and the base cost for the ACT without the writing exam is $66.3 If your child took Advanced Placement (AP) classes for potential college credit, AP exams cost $97 per test.4
Prom
The cost of prom night alone can creep into the thousands.5 Today's prom must-haves often include:
- • Prom tickets
- • Pre-prom dinner
- • Dress or suit
- • Shoes
- • Accessories
- • Flowers
- • Hair/nails/makeup
- • Limousine/party bus/rental car
- • Post-prom party
Other expenses
Many high school seniors like to have mementos of this special time in their lives. Families often pay for experiences and items such as:
- • Senior pictures
- • Yearbook
- • Class ring
- • Senior parties
- • Senior trips
6 Tips for Saving Money on Senior Year
Tallying up all the expenses, senior-year costs can easily run into the thousands.6 It's tempting to pay top dollar for every experience, but if you have a limited budget, don't let high school senior-year purchases cut into the funds you plan to use for college or other post-high school expenses. Money spent on college tuition might have longer-term benefits than what you spent on a high school class ring collecting dust in a jewelry box a year later. Here are a few ways to prepare for the upcoming costs, and tips for saving money.
1. Make a plan
Now that you have a general idea of common senior-year expenses, you can use this planning period to save and to involve your child in the process. Talk with your child about how they can make a budget and contribute to some of the costs. You can identify everything you plan to pay for as a parent, have your child decide what “extras" they'd like to cover and work together to develop a savings plan to afford those things.
Another option is to have your child pay for part of the experience they select—maybe they pay for prom tickets, dress shoes or the dinner before the dance, while you cover everything else. It all depends on what works best for your family's budget and savings.
2. Look for deals
You can find ways to save money on some experiences. A less experienced (but talented) photographer might offer you a free or inexpensive senior photo shoot to build their portfolio. Many gently used (but spectacular) prom dresses and suits can be found at consignment stores at prices much lower than retail. Online resale apps like Depop and Poshmark often feature upscale dress wear that would be great for prom.7
Community organizations also sponsor prom dress or suit giveaways in early spring, giving many young people a lovely prom or graduation outfit for free.
3. Seek financial assistance
If you're struggling to pay for certain expenses, see if your child's school offers financial assistance for items like a cap and gown or other costs considered mandatory for graduation. Your school could have funds designated for lower-income families, or they might waive certain costs.
In addition, contact college admissions offices to see if you qualify for an admission fee waiver or if enrollment costs can be rolled into a financial aid package. Standardized test fee waivers are also available for families meeting certain income guidelines.
4. Choose the right savings vehicle
Get ahead of the game! Save for senior-year expenses by putting aside money into the right savings vehicle. Once you've automated your contributions, try not to touch the funds until your child reaches 12th grade. A few options for savings accounts:
High yield savings account, money market account or CD
Opening a savings account with a competitive interest rate can help you earn additional money on your deposits. High yield savings accounts or money market accounts are good choices if you want to consistently make deposits from each paycheck, while a certificate of deposit (CD) could be ideal if you have a lump sum to deposit for a few months or years. Most CDs have higher interest rates than high yield savings accounts.
Your savings plan can include both: a high yield savings account or money market account for frequent deposits, as well as a CD to help gain more interest on funds you won't need immediately. When the CD reaches its maturity date, you can transfer the money to the other accounts and begin using it to pay for what's needed.
College-focused savings account
For college expenses, consider opening a 529 college savings plan if you haven't already. If you have one, continue to make contributions. The money can only be used for qualifying college-related expenses (such as tuition), so you can't use 529 funds for college application fees, standardized tests or the cost of college visits.8 Still, what you save now, plus any interest earned, will help your family once your child completes their senior year of high school.
Contributions can reduce your overall tax burden, and if your child chooses not to attend college, you can use the money for a second child, withdraw the funds or—thanks to a law passed in late 2022—roll up to $35,000 into a Roth IRA.9 Be aware that if you withdraw 529 funds and don't use them for college expenses, there's a 10% penalty on your earnings and the money is subject to income tax.
5. Utilize savings from summer or part-time jobs
If your child works during the summer or has a part-time job during the school year, have them put aside a set amount from their paycheck to cover certain senior-year expenses. They can also save some for any post-high school expenses, such as college costs, rent or job-related transportation.
6. Get help from family and friends
While family and friends may already be contributing to your child's college fund, see if they might be willing to chip in for a senior-year expense or gift one to your child as a birthday or holiday present.
If you have any cultural or religious birthday/rites of passage celebrations taking place during their teenage years (sweet 16, quinceañera, bar/bat mitzvah), create a savings account for senior-year expenses with funds that might be gifted on those occasions.
Don't Drown in Senior-year Debt
Finishing high school is a time to celebrate, and the party often starts as soon as a child enters grade 12. Start your financial planning now to make it more affordable for everyone, and send your high school senior off in debt-free style.
Shannon Shelton Miller is a writer living in the Midwest who enjoys finding stories at the intersections of health, beauty, sports, business, history and culture. A writer and journalist for more than 25 years, her work has appeared in numerous national websites and publications.
READ MORE: How to Save Money in College: 40 Totally Doable Tips
Sources/references
1. Wood, S. Colleges With the Highest Application Fees. U.S. News & World Report. Published January 28, 2022.
2. How Much Does the SAT Cost? College Board. Updated May 25, 2022.
3. Current ACT Fees and Services. ACT. https://www.act.org/content/act/en/products-and-services/the-act/registration/fees.html
4. AP Exam Fees. College Board.
5. Adams, S. How Much Does It Cost to Go to Prom? We Added Up Some Average Prices for Gowns, Tuxes and More. PennLive. Updated April 21, 2022.
6. Sweeney, H. I Had No Idea How Expensive Senior Year of High School Is. I Spent Over $2,100 Before It Even Ended. Insider. Published August 30, 2022.
7. Oh, H. and Rivera, B. 10 Ways to Sell Your Prom Dress and Make Major $. Seventeen. Updated May 1, 2023.
8. Qualified Education Expenses. IRS. Updated October 27, 2022.