Graduation from University represents the successful achievement of a task that has taken someone between three and six years to complete. As such graduation deserves to be celebrated properly.
Part of that celebration is giving gifts to the graduate. They have earned it, so go ahead and be a bit more geneous than you would be at their birthday. After all this is a once in a lifetime event for them. It is doubtful they will ever spend so long focusing on one specific goal again in their lives.
What sort of gift is appropriate for a graduation?
Something personalised is a good idea. Graduation Goblets and tankards for boys and jewellery for girls.