Are you trying to figure out how much money should you spend on a wedding ring?
While this is an age-old question with many marketing-based answers, it’s a financial decision that can have a long-lasting impact on you and your future spouse.
Choosing the band and the stone consists of two components; an emotional one and a fiscal one.
Whether you’re looking for a matching wedding band or are trying to decide on how much to spend on engagement ring, we’re going to help reconcile these two aspects.
Is There a Traditional Amount to Spend?
Ever since the 1950s, marketers have prescribed the engagement ring rules of spending between two or three months’ salary on a diamond engagement ring. While the prices of engagement ring that fall within this financial bracket will undoubtedly yield you a gorgeous one, it’s not always the right decision for every couple.
Many enthusiasts will tout the claim that a diamond is an excellent investment. However, wedding and engagement rings shouldn’t be thought of in such a manner. When you place a ring on your loved one’s finger, the last thing you should be considering is your ROI if you barter it.
If you adhere to the average engagement ring cost of the two-months salary rule, you may be incurring unnecessary debt as newlyweds.
So, how much money should you spend on a wedding ring? And secondly, how much should an engagement ring cost?
Wedding Rings
Depending on where you’re located geographically, the average amount spent on engagement ring and wedding bands can vary drastically.
Recently, the average cost of wedding rings for men hovered around $500 while women could enjoy a wedding ring around $1,000.
Factors such as which precious metal is used, the setting’s design, and if the band is adorned with gemstones can significantly affect the price.
Engagement Rings
An engagement ring is a declaration of love and commitment, and while you don’t want to place a subpar ring on your beloved’s hand, you also shouldn’t overextend yourself financially.
The culturally accepted average price of engagement rings was manufactured in the 1930s by the diamond company DeBeers. The company at the time stated that one month’s salary should be spent on a ring, until the 1980s when it was increased to two months salary.
These campaigns also solidified the idea that an engagement ring should be set with diamonds in particular.
While this may be an established norm, should you let a 1930’s marketing ploy determine how much to pay for an engagement ring? Well, only you and your future betrothed can answer that question.
As it stands, according to The Knot 2020 Jewelry and Engagement Study, the average engagement ring price is approximately $5,500.
While this statistic may narrow down the answer to “how much do engagement rings cost?” The price depends on the preference of each couple.
Should You Have to Save, Borrow, or Budget for a Ring?
A couple who embraces the beauty and traditions of marriage should be admired, as they are making a public announcement of their commitment to one another.
However, on a less romantic note, marriage is also a financial commitment, and whatever assets and debts each held separately is suddenly shared between both.
While the chances of one of the partners entering the marriage do so with some debt, the more you can mitigate future financial burdens, the better the chances the union will last. If you can avoid adding to the pile with a beautiful, albeit expensive, engagement ring, then you should.
Wanting to give your soon-to-be betrothed the perfect ring is understandable, and saving or taking out a small loan is understandable. However, you want to choose a ring that you can pay off within a reasonably short time.
Keep in mind that a larger diamond doesn’t equate to a happier marriage, and some people would prefer to keep a low profile; not everyone dreams of a diamond disco ball on their finger, but some do.
Spend What You Feel Comfortable Spending
With the above factors in mind, how much money should you spend on a wedding ring? The best answer to this question is to have an honest and frank discussion with your partner about what they desire and what you can reasonably provide.
As a married couple, you’ll have to deal with plenty of hard decisions, and being upfront with your finances will be a significant one.
Planning your future together is a great place to start for determining where your values lie. As a couple, you can decide on financial goals, and this will help you decide whether or not you want to take out a small loan, save for a downpayment, or choose an alternative gemstone.
You may even discover that your future spouse doesn’t want a diamond and may prefer an ethically sourced stone.
Buy a Meaningful Ring, Not an Expensive One
Remember that a wedding and engagement ring is only a symbol of love and not the value of it. While you can find rings that range into the tens of thousands, the price isn’t what makes it meaningful.
Choosing a family heirloom can speak volumes, and an alternative gem can be just as brilliant but at a fraction of the cost.
Remember, saving a few hundred dollars on a ring could mean an extra night on your honeymoon.
Diamonds may have garnered the de facto title of go-to engagement ring stone, but there are plenty of other options out there.
If you and your loved one are looking for a gemstone that can rival a diamond, you should consider moissanite. Highly durable and considerably less expensive than diamonds, moissanite is the premier alternative. As they are lab-grown, you can rest assured knowing that they are conflict-free and eco-friendly.
So, how much money should you spend on a wedding ring and is moissanite the right option for you? Contact Gema&Co. to learn more.