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June 09, 2024 2 min read

Custom Engagement Rings in Dallas Addison TX 75001

While engagement rings are an expensive investment, the typical price is less than $10,000, with a national average of $6,000, according to The Knot's 2022 Jewelry and Engagement Study.

What amount should you spend on an engagement ring?

The solution is as practical as it is romantic: Spend only what you can afford without incurring long-term debt. "There just isn't a concrete rule for what you should spend on an engagement ring anymore," says LaDonna Cook, a certified financial counselor at Green Path Financial Wellness, a nonprofit debt counseling organization.

"In the past, you may have heard something like 'spend at least two or three months' wages,' but this is more marketing than genuine counsel. It does not take into account income stagnation, price rises, new patterns in student loan debt, and other factors."

Cook suggests taking a comprehensive look at your financial status to determine what you can afford and how much to spend on an engagement ring. This includes:

  • Your present and projected income, including the average monthly amount
  • Your normal bills, such as rent, electricity, food, and medical care.
  • Your current credit card debt.
  • Long-term debt, such as vehicle, school, and mortgage loans.
  • Where you live (prices for rings vary greatly throughout the country).
  • How much you have saved
  • Large future costs.
  • Your partner's view, as this will probably become a shared debt.

Does this seem overwhelming?

Before you choose the right sparkler to fit into your loved one's ring finger, use our easy engagement ring calculator, which considers various criteria such as your future aspirations and present lifestyle.

"The important thing to remember when deciding how much to spend on an engagement ring is that it's just one part of your life together as a couple," says Grant Speed, adding that you'll have several large major expenses in the near future that will affect you far more than the ring—think wedding, honeymoon, purchasing a home, and/or children.

You should also avoid purchasing an engagement or wedding ring for financial purposes. "In the past, people saw jewelry as an important part of their household wealth," says Grant. "But the truth is, it is a depreciating asset, and you'll never be able to sell your ring for what you bought it for."