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Engagement costs

Whether it’s romantically planned or joyously spontaneous, your engagement is a special day.

How much should I spend on an engagement

We know it’s exciting popping the question. We also understand, it can be financially stressful. Whether you’re a planner, or a real spur of the moment person, we have the financial options to help you save and pay for your engagement.

According to an urban myth: you’ll need three months’ salary to pay for the engagement ring. The truth is, how much you spend is up to you, your context and what you value. In fact, if you’re planning where to pop the question or scoping out venues for the engagement party your budget will be larger.

You may have seen the perfect venue for a garden party and need to save for hiring costs, catering, etc. Perhaps you want to pop the question underwater on a long-planned for diving holiday because you’re both mad keen divers? Or you want to celebrate with your friends at home?

What you spend on your engagement - on the rings or tokens, on the party or quiet dinner – comes down to how you want to express yourself. We can help you save and pay for your dream.

If you’re a saver and you have the time, then setting your savings goal and finding the right savings account can help you reach your financial goals.

But not all of us are savers, or have the time.

If your proposal is more spontaneous, we have other financial options that can help you pay for your engagement and the ring or expression of love you choose.

If you and your partner have something specific in mind for your engagement, you might want to consider a loan to fund it.

You may have joint savings you could use to part fund your engagement, which you might then supplement with a loan. We can help you calculate how much you can borrow and how to manage your repayments.

Taking out a loan could help you meet your engagement needs. You can read more about how a personal loan might help you here.

Setting your engagement goals

When it comes to what you can spend on your engagement, it’s totally up to you. You can find handcrafted rings for under $1000 or more than $100,000. You could be going away for a romantic weekend or celebrating your announcement with friends. How you finance your engagement, is an important consideration.

Whether it’s setting up a savings account or considering a personal loan, or a combination, having a plan will help.

The Saving for an Engagement Plan has seven simple steps. It can help you work out your finances.

  1. Start by listing out your goals. For example: the engagement ring.
  2. Write down the dates you’d like to meet the goals. Be realistic.
  3. Estimate the amount of money you need to meet each goal. For example, if your ring goal is to save $3500, enter $3500 as the cost of the goal even if your target date is a year away.
  4. Work out the gap between the cost of your goal and the money you currently have available for it.
  5. Calculate the time to your target date.
  6. Calculate how much to save each month, and then consider if your target date is manageable & reasonable.
  7. You can also note how much you may need to borrow and how you will manage your repayments.

Meeting your engagement goals

If you’re paying for more than one goal – the party, a traditional ring or more contemporary personal tokens, the wedding, the honeymoon - consider how you can manage your long or short term goals in one account.

Thinking about using credit

You may want to think about making deposits or small incidental purchases using a credit card. We can help you find a credit card that suits your needs. For example, some credit cards can help you rack up frequent flyer points and rewards that you can use for your honeymoon or when you next travel together. We can also help you with your repayments through SmartPlan.

SmartPlan helps you structure credit card repayments by breaking them down into a number of regular monthly instalments.

For the savers

You might choose from a savings account that rewards you with bonus interest, or an online savings account with a great introductory interest rate, we can help you get the right account.

How can I meet my budget

Often meeting your budget comes with compromises. If you’re going in for an engagement ring with a gemstone, this is where the 4Cs matter.

The 4Cs and why they are important

Colour, clarity, carat, cut – these are the 4Cs behind the grading of any gemstone. The better the colour, the clearer the stone, the more weight (carat) and the style of cut - all add to the cost of the gemstone and so affect the price of your engagement ring. For example, many of the expensive rings use Princess or round cuts – there are nine popular cuts for gemstones.

What’s important to you when it comes to the 4Cs will help you find the perfect engagement ring.

Of course, there are many couples who would shy away from the traditional gemstone ring, choosing, instead, a token of love that expresses who they are and how they view their commitment. From a Claddagh Irish ring to shared tattoos, talking together about what you want and how you will achieve your dream is important.

The 5th C - compromise

You’ve done your sums. You know what you have and what you might need to borrow and comfortably manage financially. Deciding what matters to you and what you are willing to compromise on can help you decide where you might cut costs. It could be in the traditions, such as the ring. There are services which offer stone upgrades. You can buy a stone within your budget now but can upgrade the stone as time goes by returning the original and putting the value against the new stone.

You may decide you can pop the question without the expense of a special dinner or reduce the guest numbers at the party. Your choices can help you achieve the perfect engagement within your budget.


The information above is general in nature. Always seek professional assistance to assure that your decisions are appropriate to your personal circumstances and objectives.