The old theory on engagement ring spending is that the cost should be equal to three months' gross salary – but younger Americans may be planning to rewrite that rule.
While nearly one-quarter of Generation Z and millennials say they don't ever plan on getting married, the ones that do are not expecting to spend too much on an engagement ring, according to a new study from TD Ameritrade.
While the average engagement ring costs around
$5,000, the majority of younger Americans expect to spend less than $3,000.
Among Generation Z, 11 percent of respondents said a ring should cost less than $100, while 43 percent said it should cost under $1,000. Only 5 percent said an engagement ring should cost between $5,000 and $10,000.
For millennials, the highest number of respondents placed the ideal price between $100 and $999 (31 percent), while the next highest range was between $1,000 and $2,499 (30 percent). That compares with their parents – 36 percent of whom cited costs between $1,000 and $2,499, while 27 percent opted for $2,500 and $10,000.
