What Should Be the Budget for An Engagement Ring?

 Engagement rings are a centuries-old tradition but their exact type, role, and meaning in the engagement process, as well as their prices, have all varied over time. Fortunately, engagement rings today are incredibly diverse, and an increasing number of people are focusing on more affordable options such as non-diamond gemstones, lab-grown, diamonds, and others. Still, the question remains – what should be the budget for an engagement ring? What are the average prices for engagement rings today? Are you expected to spruce a 5-digit sum of money for a huge diamond? Would you be looked down at for a more modest engagement ring? And how can you get the most bang for your buck when shopping? We’ll try to cover all that below.

What is the average budget people set for engagement rings?

The exact estimates for an average engagement ring budget today vary depending on who you ask but most agree the average is somewhere around $6,000 for the US. Even then, some estimate that the current average is even lower than that, with Brides claiming that the Covid-19 pandemic brought down the mean cost for engagement rings down to under $4,000.

Whether we put it at around six or four thousand, that number is indeed going down as it used to be considerably higher just a few years ago.

There is an ongoing trend showing that people are less inclined to overspend on engagement rings with an increasing number of couples focusing on the emotional and symbolic value of the engagement ring rather than how flashy the diamond is.

That, plus the emergence of great alternatives to natural diamonds is making engagement rings more affordable than they have been in decades. But there are still many couples who prefer to go big on the engagement ring, seeing it as a reflection of their values and relationship. 

Whatever the average price is really doesn’t matter for the individual – all that matters is what’s the right price and ring type for you.

What should your budget be for an engagement ring?

The simple and very unspecific answer is – as much as you are comfortable with and not so much that it would stress your finances. Many people feel the pressure to overspend on an engagement ring to show just how much their loved one means to them, but it shouldn’t be that way. 

An engagement ring is supposed to be extremely special, represent your love for the other person and be a shining symbol of your beautiful relationship. And it must also fit your loved one’s taste and preferences. This brings up questions such as – do they want a diamond or a different gemstone, what kind of metal would they prefer, what’s the right setting and design, are they into minimalist or maximalist styles?

In short, getting the right engagement ring is a balancing act between several factors. So, let’s try and see how exactly you can juggle between them.

How to set a budget that’s right for you?

The first step of setting any budget is determining what sum of money you are 100% sure you’d be comfortable spending. How exactly you arrive at that sum is up to you – some people are fine using all their savings because they are confident in their monthly income. Others prefer to always have a buffer of savings they never go below. And then there are people who feel perfectly comfortable taking credit.

Deciding which of these approaches is right for you depends on your personal financial and professional situation. Either way, once you’ve arrived at a specific sum, it’s a good practice to drop that number by about 10%. That’s because it’s not uncommon for people to pick something that’s just a bit over their budget when browsing for engagement rings. 

If you’re looking for a bit of external evaluation for what your budget should be, you can also consult with an engagement ring budget calculator. There are a few such calculators you can find online that will evaluate the “best” budget based on the financial parameters you feed into them. This can give you a relative gauge of how much you’d want to spend, but keep in mind that such calculators don’t know your actual situation and preferences as well as you do.

The next factor to consider is the expectations of your loved one. You should know them pretty well if you’ve gotten to this point in your relationship. Would they want something extra valuable? Would they feel uncomfortable with something that’s too expensive? In the latter case, getting an overly expensive engagement ring may not only be a waste but it may make your fiancé feel uncomfortable.

 If, however, your partner has always dreamed of a flashy diamond ring, giving them a small minimalist stone might not be the best option.

If you know your loved one’s expectations are well beyond your current financial capabilities, some options to consider would be a good payment plan or a fair credit that won’t jeopardize your future finances. Or you can just look for ways to get the highest possible quality for the funds you have available.

How do you get the highest quality engagement ring diamond for the lowest possible price?

The best thing you can do if you want to find the ideal jewelry deal is to invest a bit of extra Time into researching what’s right for you. There are all kinds of jewelry retailers out there offering various prices. While all jewelers always market themselves as offering the greatest prices, that’s obviously not the case and some are better than others.

What’s more, the pricing of diamond jewelry such as engagement rings is typically based on the 4Cs – Carat, Cut, Clarity, and Color – but those don’t really describe all possible facets of diamonds. For example, some cuts are more popular than others but there are those such as the oval cut, for example, that offer a greater surface area and, therefore, look bigger without being more expensive.

Another example would be clarity – while that describes the number of inclusions a diamond has, it doesn’t describe where those are and how well they can be hidden by a ring’s setting.

This can also be exploited as it allows you to pick a diamond with a technically lower clarity grade that nevertheless looks clear on the right ring.

Color is also an important factor. Some stones may not be as colorless as others but if their color hues fit the ring’s metal’s color, that hardly matters. The design of the ring can also make its diamond look bigger as is the case with the popular halo setting.

By exploiting certain small factors, we can often find more affordable and/or larger diamonds that look fantastic on an engagement ring without breaking our budget. Learning these tricks and finding the right stone/ring combination can take a bit of time and effort, however, which is why it’s smart to start looking as early as possible.

An increasing number of people also go for non-diamond engagement rings, such as lab-grown diamond or an engagement ring gemstone such as sapphire, ruby, emerald, aquamarine, tanzanite, or others. Doing this allows you to get an engagement ring with a visually stunning stone and look without emptying your bank account or saddling yourself with unnecessary debt.

In conclusion

Budgeting for an engagement ring can feel difficult and daunting but it doesn’t have to be.

Customers today have more options and tools they can employ than ever before. So, as long as you give yourself a bit of time for research and you’re smart about it, you can find fantastic options that aren’t too harsh on your budget.

At the end of the day, only you can determine the right price for an engagement ring for yourself. If you’re in the market for an engagement ring, we recommend checking out Intercontinental Jewelers. They have some of the best prices for diamond rings and jewelry. Browse their collections here.