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By far, the best Graduation gift for elementary and middle schoolers is a prepaid cell phone. I just bought my 11 year old boy a NET10 plan (SamsungT104 slider phone). It's his first cell phone so I think he's going to love it! I thinks the prepaid is actually the best way to get them started on the whole cell phone concept because since they have a limited amount of minutes per month, they really need to watch how they use it. The NET10 plan is 10 cents a minute and 3 cents a text, so the 150 minutes he will be getting every month (for just $15!!) should be more than enough - if he learns to use it wisely that is. Anyways, that my graduation tip, and I think its a really good one if you're trying to teach your kids good habits while saving a ton of money.
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