The prom isn’t only a major rite of passage for teens, it has also become a financial burden for families, with the average expenditure slated to reach $1,139 this year.
That’s a 5% bump from last year, according to a survey from Visa (V -0.91%). That means prom spending is rising faster than the rate of inflation, which has hovered below 2% this year.
Another trend emerged in Visa’s survey: It found that poorer parents plan to spend more than wealthier ones. Families earning less than $50,000 a year will spend $1,245, while those earning more will fork over only $1,129.
The biggest spenders of all are single parents, who said they’ll shell out $1,563 to outfit their children in tuxes and prom dresses, hire limos and buy other accoutrements. Meanwhile, married parents are relatively frugal, budgeting just $770, the survey found.
So is the culprit the rising cost of corsages, or something else? According to one analyst, teens are buying fancier dresses and don’t want to rely on one pair of shoes.
“Dresses are more elaborate. . . . They are now buying two pairs of shoes, one to go to prom and one to dance in,” Marshal Cohen, an analyst at NPD Group, told the Daily Mail. “This crop of kids cares about prom.”
Remarkably, this year’s prom costs represent a 41% jump in spending from 2011’s $807 average, according to the Mail.
As broken down last month by MSN Money’s Smart Spending, families shell out not only for prom tickets ($20 to $250) but for a pre-prom dinner that can cost as much as $130. Then there’s the limo, which can cost as much as $500.
Who’s paying for all this? Visa said parents pay about 59% of the costs, while teens cover the remainder.
(source–Aimee Picchi/MSN Money)
Remarkably, this year’s prom costs represent a 41% jump in spending from 2011’s $807 average, according to the Mail.
