How Much Should You Spend on an Engagement Ring?

Buying an engagement ring is one of the most significant purchases you’ll make in your life. It’s not just about the cost – it’s about finding a ring that symbolizes your love and commitment while aligning with your financial goals. So, how much should you really spend on an engagement ring? Here’s what you need to know.

1. The Origins of the “Two Months’ Salary” Rule

You’ve probably heard the common guideline suggesting you spend two or three months’ salary on an engagement ring. This idea was popularized by a diamond advertising campaign in the 20th century to encourage higher spending on rings.

However, this rule is not a financial requirement. It was a marketing strategy that stuck around culturally, but the amount you spend should depend on your personal financial situation, not an outdated advertising concept.

2. Average Cost of an Engagement Ring

In Canada and the United States, the average cost of an engagement ring ranges between $3,000 to $6,000 depending on location, retailer, and diamond specifications. Some people spend less than $1,000 while others choose rings upwards of $10,000 or more, especially for custom designs or premium brands.

Remember, these are averages – not expectations. Your focus should be finding a ring that is meaningful, beautiful, and within your budget.

3. Factors That Affect Engagement Ring Cost

Several elements determine how much an engagement ring will cost:

• Diamond or Gemstone: Size, quality, and type of stone are the biggest price factors.

• Metal Choice: Platinum costs more than gold due to its density and durability.

• Design Complexity: Intricate settings, hidden halos, or custom designs can increase prices.

• Brand: Designer brands often cost significantly more for similar materials due to brand value.

4. Tips for Setting Your Budget

Here’s how to decide what you should spend:

✅ Assess your finances honestly. Don’t go into debt that will strain your future together.
✅ Prioritize what matters. If your partner values a larger stone, consider a lab-grown diamond to reduce costs without sacrificing size or quality.
✅ Think long-term. You may have upcoming wedding costs, a home down payment, or travel plans to save for.
✅ Choose meaning over cost. A modestly priced ring with a thoughtful proposal will mean far more than an expensive ring purchased under financial stress.

5. Alternatives to High Spending

If you want a beautiful ring without overspending:

• Lab-Grown Diamonds: They look identical to natural diamonds but cost up to 30-40% less.

• Alternative Gemstones: Sapphires, emeralds, and morganite offer stunning, unique looks at lower prices.

• Smaller Carat Weight: Choosing slightly below popular weights (e.g. 0.9ct vs. 1ct) can save significantly.

• Simpler Settings: Solitaires are timeless and often more affordable than halo or intricate designs.

6. Focus on What Truly Matters

Ultimately, an engagement ring is a symbol of your love, not your net worth. Your partner will treasure the thought, effort, and meaning behind the ring far more than its price tag. Being financially responsible as you enter this next chapter will benefit your relationship in the long run.

Final Thoughts

There is no universal amount you “should” spend on an engagement ring. Instead, choose an amount that feels right for you, your partner, and your financial plans together. Whether it’s $1,000 or $10,000, the perfect ring is one that reflects your love story and commitment.

Explore our curated collection of stunning engagement rings toronto at every price point or book a consultation with our experts to find the perfect ring for your proposal.