A 27-year-old asks The Ramsey Show how much her boyfriend should spend on a ring. They say forget the 2-3 month salary rule — 3 expenses matter more

The show hosts didn’t like that. Host Ken Coleman called the rule “artificial.” The panel dismissed the claim as marketing drummed up by the diamond industry. Rachel Cruze, daughter of financial expert Dave Ramsey, suggested couples focus on big ticket purchases instead.

Why the 2-3 month salary rule may be fool’s gold

Hosts called the 2-3 month salary rule “marketing,” claiming it comes from the diamond industry.

The rule dates back to a 1930s ad campaign by diamond company De Beers. BBC documents how De Beers was rocked by a Depression-era sales slump, so to drum up sales, De Beers launched a campaign designed to link diamond spending to one’s salary. The idea was to make it normal for couples to spend a one, two, three months’ salary on rings.

Regardless of whether De Beers is solely responsible for the current state of things, rings remain a significant expense for couples. A study by The Knot reveals the average cost of an engagement ring is $5,200, and almost two-thirds of respondents say they spent less than $6,000 for their purchase. That’s about one month of the average American salary.

Many couples think a ring is worth going into debt over. One study by fintech SoFi and wedding planning company Zola revealed almost 25% of those surveyed went into debt to buy an engagement ring.

The Ramsey panel didn’t dismiss salary entirely. Cruze called what someone makes per month a “good gauge” of what’s reasonable. What she disliked: the rigid 2-3 months rule. She also suggested the couple avoid debt by paying in cash.

Jeff told The Ramsey Show hosts he was debt-free.

One expert endorses a bucket strategy

Cruze suggested the couple put all the money into one “bowl” and divvy by priorities. Three expenses she flagged: the wedding, honeymoon, and mortgage down payment.