With high school graduation quickly approaching, most seniors are already gearing up for their prom. While this can be a very formative and memorable event in any young adult’s life, that doesn’t mean you need to go into debt paying for it.
Rising Cost Of Prom
A recent report from Visa shows that the average amount of money an American household spends on a single prom has risen 33.6 percent from 2021. As a result, this has pushed the average cost to an estimated $1,078, up from $807 last year.
Different Spending Habits Between Income Groups
The report noted that there was a significant rift between the prom-oriented spending habits of different income brackets. Specifically, households that make between $20,000 and $29,999 will spend a baffling $2,635 on prom night expenses. In addition, the next highest group makes less than $20,000 per year and plans to spend roughly $1,200. In contrast, families that make between $40,000 and $49,999 will spend the least, at an average of $695.
Who Is Absorbing The Rising Cost?
The report indicated that parents plan to pay for 61 percent of prom expenses, while their children will only be responsible for the remaining 39 percent. Experts believe that televised red carpet events and reality shows are two driving social influences that may be responsible for the surge in the cost of the average high school prom night.
Regionally, households in the Northeast plan to spend the most at an average $1,944 per child, while Southern families claim they will spend the next highest at $1,047. Meanwhile, families in the West and Midwest plan to spend $744 and $696 on prom, respectively.
While you may think that it’s reasonable to spend a lot of money to please your child, if the expense doesn’t fit your overall budget, try to refrain. Overspending on prom, and subsequently needing a payday loan advance to cover your monthly bills, may give your child short-term satisfaction, but it can hurt your financial future.…