How Much Should You Spend on an Engagement Ring in 2024?

Congratulations! You have just made a decision that would change your life. Before asking the most important question of your life, you need to purchase that unique engagement ring for the love of your life. 

Are you going to go for diamond engagement rings? From choosing the perfect diamond shape to deciding on the carat size, many details come with selecting the perfect ring for your soon-to-be life-long partner. One detail you may need clarification on is how much an engagement ring should cost. 

There is no one-size-fits-all answer, but this blog will attempt to explore what couples today are spending on engagement rings and how they came about with a justifiable amount. 

How Much Should an Engagement Ring Cost? 

The tradition of spending a specific amount on an engagement ring is not set in stone!  The ideal amount to spend can vary based on your circumstances and preferences. 

 Customarily, spending about two months' salary on an engagement ring for women is often suggested. This old-school rule is the most popular way to calculate how much to spend on an engagement ring.  

More and more millennial couples are debunking the two-month tradition. You may have other goals together – a new home or having kids. Thus, budgeting for an engagement ring differs significantly from two generations ago. 

Here are some things to consider when you are shopping for an engagement ring: 

• Consider your current income and financial stability and what you can comfortably afford. 
• Establish a budget based on your financial goals, priorities, and upcoming expenses (the wedding and honeymoon). 
• Consider your long-term financial goals, such as buying a house, starting a family, or furthering your education. 
• Have an open and honest conversation with your partner about expectations and preferences. 
• The type of ring your partner desires, such as metal, gemstone, and overall design. 
• Cost of living, cultural norms, and expectations around engagement rings. 
• Your shared values as a couple. 
• Your savings and how much you are willing to spend. 

There is no one-size-fits-all answer; the thought, effort, and love behind the engagement ring matter most. Indeed, you can find a balance that reflects your values and financial situation while ensuring a meaningful and memorable engagement.

How Much Should an Engagement Ring Cost? 

In 2021 and 2022, the average engagement ring sold was around $7,000. However, some couples spend a lot less while some spend a lot more. 

How to Get the Best Engagement Ring for Your Money

Consider these tips to get the most value for your money when buying an engagement ring:

• Establish a budget to prevent overspending. 
• Familiarize yourself with the four Cs of diamonds (color, cut, clarity, and carat) to prioritize what matters most to you and your partner. 
• Explore alternative gemstones that can be more affordable than traditional diamonds. 
• Consider different options for the metal of your ring. 
• Simple designs or alternative settings can be more cost-effective while still being meaningful and elegant. 
• Ensure the diamond has a reputable gemological certification from the Gemological Institute of America (GIA) to prove its quality and authenticity. 
• Purchase from reputable and established jewelers to ensure quality authenticity, which may come with better customer service. 

Trends Shaping Engagement Ring Spending

Selecting the perfect engagement rings for women can be one of the most exciting yet overwhelming decisions before plunging into your new life with your beloved. Current trends affect the price of an engagement ring. 

Millennials are waiting longer than the past generations to make life-changing decisions like getting married and prefer practical spending over lavish extravagance.  Engagement ring shopping is far from what it used to be. The two-three month’s salary for engagement rings is considered taboo!

The more common in-stock engagement rings are not an option that excites many today. More and more couples want an engagement ring that tells their story, reflects their personalities, and adds a personal touch. Thus, custom designs are a growing trend. 

According to a recent survey by The Knot ( a wedding planning site), millennials spend more than Gen Zers when buying engagement rings, $6,700 against $ 4,100. The cost of the rings varied depending on whether they were diamond engagement rings or not. 

About three out of five couples said they stuck to their budget, while nearly 30% confessed they spent more than planned. Diamonds remain the most popular type of engagement ring (86%), with round (41%) continuing to be the most popular cut. However, the oval shape is fast growing in popularity. 

Close to 25% of diamond engagement rings featured lab-grown diamonds. Moreover, couples are trending away from engagement rings in white gold. Yellow gold engagement rings are soaring in popularity. 

Interestingly, couples today often spend 16.7% of their wedding budget on jewelry.  Roughly 61% of customers buy engagement rings, and their wedding rings are from the same jewelry retailer. 

How to Buy an Engagement Ring

An engagement ring is a significant purchase. Thus, it is crucial to make an informed decision. 

• Determine how much you are willing to spend on the engagement ring.
• Familiarize yourself with the four main criteria used to assess the quality of a diamond: cut, color, clarity, and carat weight. 
• Consider your partner's style and preferences. Do they prefer a traditional or modern design? Do they have a favorite metal (white gold, yellow gold, rose gold, platinum)? 
• Find a style and setting that match your partner's taste. There are various options, from solitaire to halo, and each has a unique appeal. 
• Ensure you know your partner's ring size. 
• Consider adding a personal touch to the ring, such as engraving a special message or choosing a unique setting.
• Look for reputable jewelers with positive reviews and a history of customer satisfaction. Consider both brick-and-mortar stores and online retailers.
• Check for certification of the diamonds. 

Shopping for an engagement ring in brick-and-mortar jewelry stores allows you to see and feel the item so you can inspect its quality and appearance. On the other hand, online jewelers offer more shopping convenience because you can browse and compare rings from the comfort of your home at any time. 

Many buyers of engagement rings for men and women often choose online jewelry retailers because of the vast collections available. Online retailers also offer rings at lower prices because they have lower operating costs than brick-and-mortar jewelers.  

The “Fifth “C”: Credit Card

A cash purchase of an engagement ring for men and women allows you to negotiate a reasonable price with the jewelry store. However, a credit card with an introductory APR offer can be a better choice because you will not incur interest on your purchase. 

With your credit card purchase, you have more time to pay without worrying about paying interest until the end of the introductory period. Additionally, you can also earn reward points and other bonuses. 

The Takeaway

There is no written rule on how much to spend on an engagement ring. Modern couples place more importance on practicality and personal preference. Nevertheless, being informed about the complexities of buying engagement rings makes one an intelligent buyer.