Buzz
With the tough economic climate of the 2020s, financial advice that was once practical now feels almost outdated. A prime example: the idea that spending three months’ salary on an engagement ring is a standard. Who came up with this, and is it based on any real reasoning?
As per wedding advice website The Knot, you can thank (or blame) the De Beers diamond empire for this tradition. Back in the 1930s, De Beers started marketing diamonds as symbols of true love, promoting the idea that spending a month’s salary on a ring made sense. As inflation rose, so did the amount, eventually reaching the three-month benchmark.
For those not well-versed in jewelry and wanting to avoid giving a low-quality zirconia, the idea of spending three months’ salary—a considerable amount of money—helped reinforce the notion that an engagement ring should be a significant investment. However, in truth, there’s likely little connection between your income and the type of engagement ring you choose to buy.
For most individuals, the right amount to spend will depend on a mix of your desires, your partner’s preferences, and your financial situation. Spending 25 percent of your yearly salary may not align with this balance.
While everyone’s financial circumstances are unique, we can look at an average. Before 2020, the typical cost of an engagement ring ranged from $6000 to $8000. In 2020, the average dropped to $3756, according to a survey of 1400 newlyweds by Brides.com.
Instead of focusing on what you’re ‘supposed’ to spend—an idea largely driven by outdated marketing—it might be wiser to decide what you’re comfortable spending and then collaborate with a jeweler who can help you find a ring within your budget. Many discover that being flexible with the four Cs—clarity, cut, color, and carat—can lead to savings; others consider antique rings. Diamonds may last forever, but debt shouldn’t.
