There are countless wedding traditions that couples are pressured to abide by because it's the so-called proper etiquette. But there also are plenty of rule-breakers out there who say that old norms have no place in the current conversations about money and marriage.
One of the classics is how much to spend on an engagement ring. There's the outdated "three-month rule," which argues spending one-fourth of your annual salary on a ring for your fiance is the ultimate way to show your love.
But before you go spending three months' worth of your hard-earned income on a diamond, remember that this rule started as a marketing tactic created to drum up diamond sales during tough economic times, reports the wedding website, The Knot.
To put that number into perspective, the three-month rule means that someone making $50,000 per year ought to spend $12,500 on the engagement ring.
If a budget of three months' income seems like too big of a stretch for your lifestyle, you've got plenty of company. According to a 2019 survey from The Knot, the average engagement ring cost is actually somewhere around $5,900, and a good number of survey respondents (10%) said they spent less than $1,000. More recently, in a 2020 Brides'American Wedding Study, couples reported spending an average of $3,756 on an engagement ring, which is more than $2,000 less than the average 2019 price tag above.
Like everything to do with love and marriage, there's no one right answer and no right amount to spend on an engagement ring. The answer, in simple terms, is that you should spend exactly how much you can afford and want to spend.
It might be more romantic to buy a modest ring this year and use the extra cash to build a joint savings account that puts you on-track toward the shared future you want. It might sound more practical than romantic, but a shared nest egg could help you kick-start the life of your dreams, which could be more important in the long run.
But if buying an expensive engagement ring is of utmost importance, there are ways to finance it if you don't have the cash upfront. For some, making a low monthly payment is the most manageable way to go. Just make sure you can afford to make the monthly payments for the duration of your finance period.
Need help financing an engagement ring?: Using a card like the Amex EveryDay® Credit Card could help you finance an engagement ring with a 0% intro APR for 15 months from the date of account opening (after, 15.99%-26.99% variable; see rates and fees), plus earn 10,000 Membership Rewards® points after you make $2,000 in purchases in the first six months after opening the card.
When considering low-or-no-APR financing, look into a 0% APR credit card that also has a good welcome bonus. That way, you can pay over time without accruing interest charges, while also maximizing your savings by earning cash back or rewards points to use on a honeymoon or to furnish your first home as a married couple.
If you don't qualify for a 0% APR credit card, you could sign up for a store card with your jeweler. Even though store cards come with a few hidden pitfalls, they do often offer consumers a special 0% interest period. Be sure to look out for deferred interest and/or sign-up fees if you go this route and make sure you have a clear debt repayment plan.
Not sure if you'll qualify for a 0% APR credit card?: The best 0% ARPR cards require good or excellent credit. If your credit score needs some work, look into a personal loan or consider these five ways to finance an engagement ring.
However much you decide to spend, make sure you feel comfortable with the cost. A diamond might last forever, but high-interest debt can hang around for a pretty long time.
Information about the Amex EveryDay® Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
For rates and fees of the Amex EveryDay® Credit Card, click here
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
FAQs
According to a 2022 study from Credit Donkey, most couples reported wanting to spend between $1,000 and $5,000, though the average cost of an engagement ring was around $5,225.
What is an appropriate amount to spend on an engagement ring? ›
While engagement rings are a pricy investment, the usual cost tends to be below $10,000, with a national average of $6,000, according to The Knot's 2022 Jewelry and Engagement Study.
What is an acceptable amount to pay for an engagement ring? ›
We have all heard of the saying 'an engagement ring should cost 3 months' salary' and although this is a great way to set a goal for saving there is no set rule for this.
What is the standard amount for an engagement ring? ›
The average cost of a gemstone engagement ring is approximately $8,000. Though, as with the price of all engagement rings, the cost of a gemstone engagement ring will depend on the size (carat weight), colour, cut and clarity of the gemstone.
What is the rule of thumb for engagement ring cost? ›
It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse. For context, The Knot's 2023 Jewelry and Engagement study found that the average cost of an engagement ring in the US is $5,500.
Is $10,000 enough for an engagement ring? ›
Perhaps one that offers a bit more than just a diamond? If so, then $10,000 is an excellent budget to work with. You may have heard by now that $10,000 engagement rings are becoming more and more popular. The average of spending $5,000 on your engagement ring may soon be a thing of the past.
Is 5000 too cheap for an engagement ring? ›
Understanding the Average Costs
The national average cost of an engagement ring hovers around $5,000, but prices can vary significantly based on factors like the cut, carat, clarity, and setting of the diamond.
Am I spending too much on an engagement ring? ›
For example, if you bought a $5,000 engagement ring and lost it, would it force you to change your every day spending habits? If so, then $5,000 is too much. If $3,000 is an amount you could cope with (you'd still be upset) and not change your spending habits, then that should be the maximum budget you set.
Is $20000 too much for an engagement ring? ›
The answer to whether $20,000 is a lot for an engagement ring depends on your personal financial situation, preferences, and what you believe the ring represents. It's a significant amount of money for many people, but it's essential to find a balance that aligns with your values and budget.
How do you pay for an engagement ring? ›
Because of the high cost, there are a few options you can explore if you need to finance the purchase of your ring.
- Jewelry store financing. Many major jewelry retailers offer in-house financing to help their customers pay for an engagement ring. ...
- Credit card. ...
- Personal loan. ...
- Buy now, pay later loan.
According to a 2022 study from Credit Donkey, most couples reported wanting to spend between $1,000 and $5,000, though the average cost of an engagement ring was around $5,225.
What should your engagement ring be worth? ›
The value of an engagement ring depends on various factors like its colour, cut, carvings, design, style, and type. Diamond engagement rings hold a huge value, and their value is calculated based on the carat weight, cut, clarity, and finally, the type of diamond and its value.
How much do they say you should spend on an engagement ring? ›
You Should Spend Three Month's Worth of Your Salary on a Ring. "There is a long-standing cultural tradition of spending two to three months' salary on an engagement ring.
How much should an engagement ring be traditionally? ›
According to the classic engagement ring cost rule, you should spend three months' salary on an engagement ring for your loved one – after all, they'll be wearing that ring for the rest of their life.
What is the old rule for engagement rings? ›
You've probably heard the old “rule” that you should spend 2 month's salary on an engagement ring. Although the 2 month rule may work for some and the simplicity of this theory is attractive, it is flawed because of our unique individual situations.
How much would a guy spend on an engagement ring? ›
According to a 2022 study from Credit Donkey, most couples reported wanting to spend between $1,000 and $5,000, though the average cost of an engagement ring was around $5,225.
Is $20000 a lot for an engagement ring? ›
Is $20,000 a lot for an engagement ring? For the average person, almost certainly. However, while this generous budget provides ample flexibility, it's important to understand how to make the most of it.
What is the average salary to spend on an engagement ring? ›
The two-to-three-month-salary rule
For example, if you take home $4,000 a month, you should spend $8,000 to $12,000 a month on an engagement ring; if you take home $10,000 a month, you should feel obligated to spend $20,000 to $30,000.
Is $3000 a lot for an engagement ring? ›
Is $3,000 Enough for An Engagement Ring? Yes, $3,000 is definitely enough for an engagement ring. You can get a beautiful, high-quality diamond and a setting with this budget.
