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Entries in Prom (3)

Saturday
Apr272013

Prom Costs Rise 5 Percent to National Average of $1,139

Hemera/Thinkstock(NEW YORK) -- The cost of going to prom -- the perfect dress or tuxedo, a limo, and pre-dance festivities -- has risen to a nationwide average of $1,139.

That figure represents a 5 percent increase from the $1,078 in 2012 that American families who have a teenager attending a prom spent on all aspects of the dance.

"The thing that stuck out the most is that this trend is continuing to grow," Nat Sillin, head of Visa's US Financial Education, told ABCNews.com. "Prom affects so many families in the country, and every teen has an experience, whatever it could be."

Visa surveyed an equal number of men and women, with a random sample of 3,000 live telephone interviews, according to Sillin. Of the 3,000 surveyed, "1,025 had a child going to prom," Sillin said.

According to the survey, there are large disparities in prom spending between regions. While the Northeastern families surveyed will spend the most, with an average of $1,528, those surveyed going to prom in the Midwest will only spend an average of $722.

"Statistics worth further investigating are the difference in spending in different incomes," Sillin said.

Visa found that the parents surveyed who fell within lower income brackets, earning less than $50,000 a year, planned to spend more than the national average with $1,245. Parents who earned more than $50,000 planned to spend an average of $1,129.

The survey also discovered that married parents planned to spend $770, while single parents would spend nearly double, with $1,563.

With the high cost of this special night in every high school student's career, Sillin stressed the need to budget and plan ahead for all the expenses associated with prom.

Copyright 2013 ABC News Radio

Wednesday
Apr182012

Prom Spending Jumps 33 Percent Nationwide

Digital Vision/Thinkstock(NEW YORK) -- Many segments of the U.S. economy continue to struggle in the wake of the recent recession, but the prom industry is booming, according to a new national survey by Visa Inc.

The survey finds American families with teenagers will spend an average of $1,078 each on a prom in 2012, a 33.6-percent increase over the $807 spent last year.

Families in the Northeast will spend twice as much on a prom as every other region of the country.

Jason Alderman, senior director of Global Financial Education, Visa Inc., says, “Prom season spending is spiraling out of control as teens continuously try to one-up each other.”

Alderman adds, “It’s important to remember that the prom is a high school dance, not a wedding, and parents need to set limits in order to demonstrate financial responsibility.”

The survey also reveals that parents are planning to cover 61 percent of prom costs while their teens are only covering the remaining 39 percent.

“One of the reasons that prom spending may be running amok is that parents are paying the vast majority of costs, giving teens little incentive to economize,” says Alderman.

Other notable survey results:

  • Northeastern families will spend an average of $1,944.
  • Southern families will spend an average of $1,047.
  • Western families will spend an average of $744.
  • Midwestern families will spend an average of $696.

Prom spending broken down by family income:

  • Parents who make under $20,000 will spend an average of $1,200.
  • Parents who make $20,000-$29,999 will spend an average of $2,635.
  • Parents who make $30,000-$39,999 will spend an average of $801.
  • Parents who make $40,000-$49,999 will spend an average of $695.
  • Parents who make over $50,000 will spend an average of $988.
  • Parents who make over $75,000 will spend an average of $842.

The Visa Inc. survey is based on 1,000 telephone interviews.

Copyright 2012 ABC News Radio

Friday
Apr132012

Prom Season: How Much Are You Spending?

Digital Vision/Thinkstock(NEW YORK) -- A new survey by Visa finds that high school students and their parents are spending more on the prom this year.

The average family will shell out $1,078 for their kids' red carpet event this year, up from last year's average of just more than $800.

Analysts say peer pressure is turning the prom into a social arms race, as teens attempt to impress and outdo each other with limos, flowers, and lavish gowns and tuxes.

Copyright 2012 ABC News Radio







ABC News Radio