Deciding on a budget for an engagement can be a daunting task. There is a lot of misunderstanding about how much one should plan to spend on an engagement ring. For example, some people may have heard the old saying, “You should spend 3 months’ income on an engagement ring.” This doesn’t have to be true! The answer lies within figuring out what is MOST COMFORTABLE for your financial situation.
Thankfully, there are ways people can budget for their engagement ring purchases.
Learning Your Payment Options:
The first thing you will want to decide on is how you want to pay for this important purchase.
- Saving Up: If you are a financial planner, you may begin thinking about this important purchase a year or more in advance of beginning your search. If you are this person, you will want to start saving ahead of time. Placing money in a savings account is a good way to keep these funds set aside from everyday funds.
- Personal Credit Cards or Personal Loans: Another option is taking advantage of all the different credit-needed options. Some people will consult their bank and take out a personal loan. Others will turn to traditional credit cards with rewards.
- In House Financing: Most jewelers, including Toner Jewelers, will have in-house credit options that offer special low or no interest financing plans when paid off in a certain time frame. For example, any purchase of $1000 is eligible for 12 months at zero interest for qualified customers. The key to this type of financing is that it must be paid off in the 12 month time frame, or interest from the time of purchases will be added to the bill. For more information about in house financing or to apply, see our Financing page.
- Layaway: This option requires a down payment, usually 30% of the total, and then you have 6 months to pay towards your purchase. The one downside to this option is that the ring cannot be taken out of the store until it is completely paid off.
At Toner Jewelers, you can always combine any of these options! Many people save some amount and then finance the remainder. This allows them to have a smaller monthly payment, or stretches their budget without putting them in an uncomfortable financial situation.
Things to Consider when Determining Budget
Understand the Expense
One mistake people make when purchasing diamond engagement rings is not researching the costs. Engagement rings are a significant lifetime purchase. The following offers a breakdown of the costs involved in buying engagement rings.How the Four Cs affect budget:
The center diamond is the most expensive aspect of the ring purchase.The higher the carat weight and quality, the more expensive the diamond. There are four essential things to remember when it comes to choosing a diamond ring. Remembering the four Cs will help buyers prepare for their purchase while being able to give the most beautiful ring for their budget.
- Carat size has the greatest impact on the cost of a diamond. The larger the diamond, the more rare the diamond is, and therefore more costly.
- The color of the diamond is the next factor that determines the affordability of the diamond. A colorless diamond will cost significantly more than a diamond that appears a little “warmer”.
- The clarity of the diamond offers flexibility. Buyers do not necessarily have to purchase a stone with high clarity, depending on the size and setting.
- The cut of the diamond is of extreme importance. The cut will determine how the diamond sparkles.
Choose Budget-Friendly Options
When purchasing engagement rings from the jewelry store in Kansas City, buyers have many options.
Diamonds continue to be the most popular options for engagement rings, and can vary greatly in price based on the 4 Cs mentioned above. Diamonds are the hardest substance on the earth. Although they aren’t indestructible, they do not scratch or break easily. Another factor to consider is deciding if an earth mined diamond is the right choice for you and your budget, or if lab grown diamonds are an option. This topic is worthy of its own conversation! But in short, a lab grown diamond is a great budget-friendly option to get a larger size and/or high quality within a more conservative budget. Visit our lab grown diamond page for more information.
While diamonds are the most popular choice for engagement rings, there are many other precious stones. Any gemstone can be used in an engagement ring. The most common alternatives are Sapphire, Ruby and Emerald. Trends have favored Aquamarine and Morganite in the last 5 years as well. Pearls and Opals are widely requested. The key to choosing alternative gemstones is understanding the durability of your choice, and what special care needs they have. Regardless of what you choose, there is something for every budget.
How Much will the Mounting Cost:
There are a ton of factors that go into how to choose a mounting and how much it will cost. The most cost-effective mounting option is a solitaire with no stones. On average this mounting will cost $750 to $1000 depending on the size of the center stone. From there, the price will go up depending on how much diamond weight will be on the band. If a band has a small number of diamonds on just the band, that may not add more than $500-$800 to the cost. However, a large diamond band or elaborate halo can add thousands of dollars. The cost between 14k Gold, 18K Gold, and Platinum can also greatly affect the price.
Consult your Partner
Because this is a big financial decision, some couples may choose to talk about the expense ahead of shopping. Agreeing on how much to spend might be very easy, and indicate that a couple is on the same page. If it’s not an easy agreement, don’t worry! You will just want to agree on what is most important to the other person. Is the size of the diamond more important than the quality? Or do they care more about a unique, interesting setting?
It’s fairly likely they’ve thought about what they’d like to wear. Knowing what their vision or style preferences will not only ensure you pick out a ring they will love, it will also help you determine if you should be looking for a larger center stone, an elaborate mounting, or diamond alternative. All 3 of those options will greatly affect the potential budget.