How Much Should You Spend on an Engagement Ring?

When you’re in the market for a ring, here are some things to consider:

Spending between one and three month’s’ salary for an engagement ring is a long-standing tradition. But millennials, generally saddled with student loan debt and high costs of living—and who may have waiteding longer to get married—have thrown out this old rule of thumb. Less than half of millennials spend two month’s’ salary.¹ Instead, they often reallocate those funds into experiences, like the honeymoon or the wedding.
 
Today, the average cost of on an engagement ring is about $6,000, with about 33% of Americans spending between $1,000 and $4,000. And 8% of ring shoppers are spending under $1,000. That national average is influenced by many factors, including region—for example, couples in the Mid-Atlantic tend to spend more than the average (around $8,400).² This tracks with a study that found New York City to boast the biggest average diamonds, at 1.45 and 1.29 carats, respectively.³
 
There’s no one-size-fits-all formula. How much you spend on an engagement ring is a very personal decision. Consider your current and predicted income, expenses, and savings, then establish a budget and stick to it. Don’t go into debt just to “keep up with the Joneses.” Of course, you’ll want to carefully consider input from your partner as well. For example, 54% of women say the ring style is the most important factor, not the price,⁴ however, this may not hold true for everyone.

To help you get the most for your money when buying an engagement ring, experts suggest keep the following tips in mind:

Engagement ring spending statistics reflect how both younger generations and older couples who are remarrying are changing the dynamic of buying engagement rings.
 
People are getting married later, with more life experience and a more developed identity. As a result, they want greater originality in what they purchase, how much they spend, and how they buy. These expressions of individuality have manifested in several trends: unusual stones, settings, colors, shapes and styles. More couples are opting for sapphire, emerald, moissanite or lab diamonds because they are unusual, affordable, and sometimes more socially responsible (not “blood diamonds”).
 
Only 70% of millennials stick with traditional diamonds, in contrast to 80% of couples in 1990.^6,7 Older couples getting married for a second time are making a similar shift, seeking unique engagement rings that reflect their personalities.

The best way to buy an engagement ring is to be an informed purchaser. Whether you purchase online or at a brick-and-mortar store, if you’re opting for a diamond it’s important to do your research on the “four Cs”: Cut, Clarity, Color, Carat. And possibly on a fifth “C”—credit.
 
If you prefer to see and touch a purchase before pulling the trigger, the best way to buy may be from a:

But many believe the best way to buy an engagement ring is via online retailers, where the average cost of an engagement ring tends to be about 40% lower than at local jewelers. Many diamond websites allow users to search available stones based on their desired mix of the four Cs, and have setting-design features to help shoppers achieve the unique customized rings they seek. However, beware of bogus websites; reputable sites will be able to provide diamond certification which can be cross-checked with tools like Report Check from GIA. Reputable online jewelers will also insure your shipment and offer a customer-friendly return policy.

Many agree that best way to pay for an engagement ring is with cash. Cash may provide more negotiating power with a certain jewelers and of course, allows you to sidestep any interest. But buying on credit does have it perks and doesn’t always have to mean paying interest on the balance. One payment option is a 0% APR credit card with an introductory promotional period that aligns with your ability to pay off the balance is another payment option. This scenario offers flexibility, gives you extra time to pay (as long as you meet the minimum payment each month), and the ability to pay extra whenever you can. As a bonus, taking this approach may also allow you to earn rewards or a welcome offer, depending on the card terms, since welcome offers typically require you to meet a short-term spending threshold.