How Much Should You Spend on an Engagement Ring in New Zealand?

One of the most common questions people ask when they start looking for an engagement ring is: “How much should I spend?”

You’ve probably heard the rule that you should spend two or three months’ salary on an engagement ring. But let us let you in on a little secret… It wasn’t a tradition or a cultural rule. It was a marketing campaign.

In the 1930s and 40s, the diamond company De Beers began promoting the idea that an engagement ring should cost one month’s salary. Over time, the campaign evolved into two months, and eventually three months’ salary, all designed to encourage people to spend more on diamonds.

And while it was a very successful advertising campaign., it doesn’t mean it’s a sensible guideline for couples today.

The right budget depends on things like:

• Your financial situation
• The type of ring you want
• The size and quality of the diamond
• Whether the ring is custom made

The most important thing is simple: Buy a ring you love that fits comfortably within your budget. You don’t need to follow a dated marketing rule to have a meaningful engagement ring. Spend what feels right for you. Some couples choose to spend more because they want:

• A larger diamond
• A custom-designed ring
• A piece they’ll wear every day for decades

Others prefer to spend less and put money toward things like:

• A house deposit
• Their wedding
• Travel or experiences together

Both choices are completely valid. The engagement ring should be something special, not something that creates financial stress.

If you’re trying to decide what budget makes sense, it helps to understand what drives the cost of a ring.

1. The diamond

The centre diamond is usually the largest part of the price. Diamonds are valued using the 4Cs:

• Cut – how well the diamond reflects light
• Colour – how white the diamond appears
• Clarity – natural inclusions inside the stone
• Carat – the size of the diamond

Small differences in these characteristics can significantly change the price.

2. The ring design

The style of the ring also affects cost. For example:

• Solitaire rings tend to be the simplest and most affordable
• Halo rings add extra diamonds around the centre stone
• Three-stone rings include additional diamonds
• Custom designs vary depending on the level of detail

A well-designed setting can make a diamond look larger and more impressive without dramatically increasing the price.

3. The metal

Common engagement ring metals include:

• Platinum
• White gold
• Yellow gold
• Rose gold

With the price of gold rising significantly in recent years, many couples are now considering platinum as a durable alternative. Platinum is naturally white, very hard wearing, and doesn’t require the same re-plating that white gold can over time.

A good manufacturing jeweller can talk you through the pros and cons of each metal and help you choose something that suits both your style and your budget.

If you want the most beautiful ring possible within your budget, there are a few smart ways to approach it.

1. Focus on cut quality

A diamond with an excellent cut will sparkle more than a poorly cut diamond that is technically larger.

In many cases, a slightly smaller diamond with a better cut will look more impressive.

2. Consider lab-grown diamonds

Lab-grown diamonds are real diamonds. They have the same chemical structure, physical properties, and sparkle as natural diamonds.

The main difference is simply how they’re formed. Natural diamonds form underground over billions of years, while lab-grown diamonds are created in controlled laboratory environments using advanced technology.

Because they can be produced more efficiently, lab-grown diamonds are typically a more cost-effective option. For many couples, this means they can choose a larger diamond, a higher quality stone, or a more detailed ring design, all while staying within the same budget.

Some jewellers don’t offer lab-grown diamonds, but at Jubilee Jewellers we believe couples should understand all their options so they can choose what feels right for them.

Read our guide on lab-grown diamonds here.

3. Buy from a manufacturing jeweller

When a jeweller manufactures their own jewellery, there are fewer middlemen involved. This often means better diamond sourcing, more flexibility in the design process, and better value for the same budget. It also allows couples to personalise a ring so it suits their style and preferences.

An engagement ring is a symbol of your relationship, not a financial rule you have to follow.

Whether you spend $2,000 or $20,000+, what matters most is choosing something that feels right for both of you. There’s no “correct” amount. Just the ring that tells your love story.

Thinking about an engagement ring?

At Jubilee Jewellers, we design and manufacture engagement rings locally in Wellington and work closely with couples to create something special within their budget.

If you’re starting your search, we’re always happy to give straightforward advice and help you explore the options. We offer complimentary consultations in our studio or online.

You’ll chat with a jeweller, not a salesperson. We’ll guide you along the way with no pressure. Just honest advice.