Extreme Spending on High School Proms: Visa Survey Reveals Alarming Trends

Strategic Insights -

The average American household with teens will spend a staggering $919 on the high school prom this year, with a significant portion of that going towards extravagant "promposals" that can mirror a marriage proposal. Notably, the costs of promposals have become significantly more extravagant in recent years, with the average household spending over one third of the total prom cost on these elaborate invitations. While total prom spending is down 6% from 2014, Visa's survey highlights the need for responsible spending habits, especially among families with lower household incomes.

Key Takeaways:

  • The average household with teens will spend $919 on the high school prom this year, with a significant portion going towards promposals ($324 on average).
  • Promposals have become significantly more extravagant, with over one third of the total prom cost going towards these elaborate invitations.
  • Total prom spending is down 6% from 2014, with an average cost of $919.
  • Families with lower household incomes ($25,000 or less) will spend a total of $1,393 on the prom, significantly higher than those with higher household incomes.
  • Parents are backsliding on covering prom costs, from 56% in 2014 to 73% this year, with teens expected to cover only 27% of the total cost.
  • The Visa survey found significant regional and economic disparities, with Canadians spending $508 on prom, compared to $919 for U.S. families.
  • The Northeast spends the most on prom, with an average total spend of $1,169, while the Midwest is the thriftiest, with an average total spend of $733.

Statistics:

  • Average household spend on prom: $919
  • Average spend on promposals: $324
  • Total prom spending: down 6% from 2014
  • Families with household income $25,000 or less: average spend $1,393
  • Parents covering prom costs: 73% (up from 56% in 2014)
  • Teenage contribution to prom costs: 27%

Sources:

  • Visa Inc.
  • GfK Roper OmniTel
  • Practical Money Skills for Life
  • PR Newswire
  • http://www.prnewswire.com/news-releases/cost-of-high-school-promposals-hits-324-300058211.html