Why Engagement Rings are Not Necessary

Why younger generations are forgoing expensive engagement rings and what that means for their finances

Jewelers have been raising concerns as engagement ring sales continue to decline. Signet — the U.S. jewelry giant behind Zales, Kay, Jared, and Diamonds Direct — reported a noticeable drop in sales compared to decades before. De Beers, the world’s leading diamond supplier, described demand for rough diamonds as “soft,” while Pandora cited growing consumer hesitancy in the U.S. market.

But why? For generations, the diamond engagement ring has symbolized love, status, and tradition — a sparkling promise of forever. However, for many Millennials and Gen Z, that symbol is losing its shine and is no longer necessary. A growing number of couples are skipping or significantly scaling back on traditional engagement rings, opting instead for alternatives that better align with their values, budgets, and priorities. The result? A quiet revolution in the jewelry industry — and a new kind of financial freedom.

The Price Tag Isn't Worth It Anymore

The average engagement ring cost in the U.S. has hovered around $5,000 to $6,000 for years, but that figure is starting to slip. According to a 2024 study by The Knot, nearly 25% of couples spent less than $1,000 on an engagement ring — a sharp contrast to previous generations. Some are even ditching rings entirely or opting for less conventional options like gemstones, lab-grown diamonds, vintage rings, or tattooed bands.

But why the shift? Several cultural and economic trends are driving this change:

• Financial Priorities Have Shifted: Younger generations are saddled with rising student loan debt, astronomical housing costs, and an unstable job market. In that context, dropping thousands on a ring often feels impractical — even irresponsible. For many, that money is better spent on a wedding, a home down payment, travel, or simply building an emergency fund.

  
  

• Changing Values and Norms: There's also a broader cultural reevaluation of what marriage and commitment should look like. Many couples are rejecting the pressure to follow outdated norms, including the idea that a diamond ring is required to validate love. Personalization and meaning matter more than carat size.

  
  

• Sustainability and Ethics Matter More: Conscious consumerism is on the rise. Concerns about the environmental impact and ethical sourcing of mined diamonds are pushing people toward lab-grown diamonds, recycled metals, or no ring at all. Younger buyers want to feel good about what they wear — and how it was made.

  
  

The Upside: Long-Term Savings

Forgoing or downsizing an engagement ring can have meaningful long-term financial benefits. A $6,000 ring invested in a diversified stock portfolio could grow to over $20,000 in 20 years — enough to contribute toward a child’s education or accelerate a couple’s retirement savings.

And beyond the math, skipping the ring arms couples with a powerful financial habit: aligning spending with shared values. It’s an early test of communication, compromise, and long-term planning — traits that, studies show, are better predictors of a successful marriage than the price of the jewelry involved.

The Ring Isn’t the Relationship

Ultimately, the engagement ring is just one tradition among many, and for younger generations, it’s no longer a non-negotiable. As values evolve and financial pressures mount, more couples are choosing symbolism that feels right — not just sparkly.

The takeaway? Love is still priceless — but that doesn’t mean it has to come with a price tag.