An engagement is a big deal for any couple, but should your engagement ring's price tag be just as grand?
Many people struggle to understand how much they should spend on that perfect ring to woo their partner. Some experts suggest using two months' salary; others suggest going all out for the special occasion.
To help you decide your budget, we've made a handy guide with average costs, the types of engagement rings, and some advice on setting an engagement ring budget.
(Find the perfect engagement ring for your loved one!)
While there's no one price for all engagement rings, many studies have gathered an average engagement ring cost.
The Knot, for example, estimates that the average price for an engagement ring is $5,500 in their 2020 Jewelry & Engagement Study. However, according to the New York Times, the median spend on engagement rings was closer to $3,000.
Of course, those are just averages. Factors like your wedding ring budget, the wedding ceremony, and honeymoon plans also play a role when you go engagement ring shopping.
Depending on your financial situation and your partner's wishes, you could exceed both those ranges and splurge over $10,000 for a fancy diamond engagement ring.
Engagement ring cost myths
There are three popular myths that people believe when they go engagement ring shopping:
Two months' salary
This one is a classic rule, where people spend two months of their annual salary to buy their dream ring. So, if you earn $40,000 a year, your engagement ring budget would be around $6,666.
Some people even suggest using three months of your salary.
This rule is not relevant since modern budgets can vary greatly, depending on preferences and circumstances.
Using the average cost
We know we listed average engagement ring costs, but those prices are just for reference and should not be taken as an accurate measure when deciding your engagement ring budget.
Your financial situation and preferences should be the decider.
Going by size
A larger stone doesn't signify better quality. It's better to invest in a smaller stone that shines on your partner's hands for decades rather than a cheaper, larger stone that dulls quickly.
The type of engagement ring
Engagement rings come in many different designs. We've listed the most popular types to help you out.
Most traditional engagement rings are of the solitaire variety, which features a single gold, platinum, or sterling silver band with a solitaire diamond mounted on top.
Of course, the design of the ring is entirely up to you. You can opt for a fancy-shaped diamond ring or, if you're looking for a thoughtful design that means something to you and your partner, you can find retailers that provide custom rings.