Have you ever heard the old adage, “You should spend three months’ salary on an engagement ring?” Good news—this is no longer the gold standard (haha, pun intended, we love a good jewelry mention).
So, if you’re hoping to propose but haven’t yet determined a budget for your token of love, here’s everything you need to know about how much to spend on an engagement ring in 2024.
How Much Should An Engagement Ring Cost?
Cardi B claims the 8-carat, pear-shaped diamond engagement ring she received from Offset is worth half a million dollars. But don’t panic—this isn’t anywhere close to what’s expected of the everyday American.
The average couple drops approximately $6,000 on their engagement ring budget, but that amount varies significantly between Millennials and Gen-Zers as well as by region.
It also depends on whether the couple is reusing gemstones they already own, using a colored stone for the center, or buying a mined diamond vs. a lab-grown diamond alternative. Larger diamonds and high diamond quality can also affect the cost.
How much do Millennials spend on engagement rings?
The average price a Millennial pays for an engagement ring, according to The Knot, is $6,700 (not including the wedding bands).Most of our engagement ring shoppers fall into this category. The younger Millennials tend to choose lab-grown diamonds or colored gems for their center stones or repurpose a family diamond.
What style of engagement rings are popular with millennials?
Colored gems are popular with millennials. They can withstand the daily wear and tear of a wedding ring and include sapphires (which come in every color, by the way) and rubies.
Mined sapphires and rubies can be very pricey—some even more so than mined high-quality diamonds. But many people choose lab-grown colored stones, which are far less costly and stunningly beautiful.
How much does Gen Z spend on engagement rings?
Gen Zers are just entering the wedding age, and they tend to gravitate towards non-traditional engagement rings. They may choose a smaller stone, and their rings average $4,100.
What style of engagement rings are popular with Gen Z?
Colored gemstone centers, lab-grown diamonds, and moissanite rings are the most popular choice. Sustainability and non-conflict gemstones are big on the list for Gen-Zers, along with meaningful symbols that add personality and uniqueness.
How does engagement ring cost vary by region?
According to a 2020 study, the Southwest spends the least on engagement rings, with an average cost of $5,200. Mid-Atlantic couples tend to spend the most, clocking in at an average of $7,600 per engagement ring. Here in the Midwest, couples spend slightly below the national average, around $5,400.
Lab Grown vs. Mined Diamond Engagement Ring Cost
With the technical advances made in the past 10 years, lab-grown diamonds have become a bigger player in the ring market. Their prices have continued to come down, and more manufacturers have emerged around the world.
Just like their mined counterparts, lab-grown diamonds can vary in clarity, color, and quality. The biggest difference is that people can generally afford a better clarity, whiter color, and higher quality lab-grown diamond than they could with a “natural diamond.”
For instance, a 1.10ct round brilliant lab created diamond with an E/VS1 grading and ideal cutting (the best proportional cutting in round diamonds) has an average cost of $1,335.
The exact same qualities in a diamond mined from the earth would run over $16,000! That’s why customers who want a mined diamond generally have to choose a much lower color, clarity, and cutting for it to be affordable.
Colored Gemstones & Non-Traditional Engagement Rings
According to The Knot, about 10% of couples choose a non-diamond for their center stone. Colored gemstone rings are full of personality and generally cost less than traditional diamond rings, at around $2,500. Many people also use colored gemstones as accents around their center diamond.
While round-shaped diamonds (both mined and lab-grown) are still the number one choice, oval shapes are coming in hot for 2024! They’ve grown in popularity by over 19% since last year.
Another trend is yellow gold. It’s up in popularity by over 11% since 2017. Personally, over 90% of our engagement ring customers are requesting 14k yellow gold now.
The Knot also reported that while online jewelry stores continue to be the leading resource for ring research and inspiration, most customers now value the importance of the in-store experience and connecting to a store for their jewelry.
In 2023, 67% of rings were purchased in-store, up from almost half of in-store purchases happening at local jewelers in 2021. That’s a trend we certainly can get on board with!
How To Save Money On Engagement Rings
Yes, you want the ring you choose to symbolize your love and commitment. But it’s equally important to ensure that this significant purchase does not become a financial burden.
Set an engagement ring budget.
The outdated notion of spending three months’ salary on an engagement ring is not a one-size-fits-all rule. Instead, decide on a comfortable amount you can afford without compromising your financial goals or emergency funds.
Be wise with credit cards.
Credit cards can be a double-edged sword. On one hand, if you have a card with a rewards program, making a large purchase like an engagement ring can earn you significant points or cash back. Have a plan to pay off the balance quickly to avoid high interest charges.
Be wary of personal loans.
While personal loans may offer lower interest rates than credit cards, there are better options for financing an engagement ring. Taking on debt for non-essential expenses can lead to financial strain—especially if you’re already managing other significant debts (like student loans).
Explore lab-grown diamonds.
An increasingly popular way to save money without compromising on the value and beauty of your engagement ring is to consider lab-grown diamonds. These diamonds are chemically, physically, and optically identical to their mined counterparts but cost less.
Plus, opting for a lab-grown diamond reduces the environmental impact associated with the traditional diamond mining process, making it a more sustainable choice.
Lab-grown diamonds also circumvent many of the ethical issues linked to diamond mining, such as labor practices and conflict diamonds.
How Much To Spend On Engagement Rings: Frequently Asked Questions
What is the three-month salary rule?
The three-month salary rule is out. It’s an outdated guideline suggesting that one should spend the equivalent of three months’ gross income on an engagement ring.
This rule originated from a mid-20th-century marketing campaign and does not reflect today’s financial situations or values. Instead, it’s more important to focus on what you can comfortably afford without compromising your financial stability.
What is an appropriate amount of money for an engagement ring?
The appropriate amount to spend on an engagement ring varies greatly depending on personal financial circumstances and priorities. Remember, the ring’s significance comes from the love it represents, not its price tag.
Are lab-grown diamonds a good option for engagement rings?
Yes, lab-grown diamonds are an excellent option for those seeking a more affordable, environmentally friendly, and ethically sourced alternative to mined diamonds. They are identical to natural diamonds in terms of physical, chemical, and optical properties but typically cost less.
Explore Affordable Custom Engagement Rings
Whatever budget, stone, or style you choose for your ring, quality workmanship will always be valued. And being able to work with an engagement ring designer (like at our store) is a definite plus.
We’re here to guide you to ensure your ring is as unique as your love (and within your budget). We can’t wait to design your dream engagement ring—start a conversation with us today.