Prom prices rise, financial experts offer advice

INDIANAPOLIS (WISH) — Prom season is upon us and financial experts say the big night can add up to more than $900.

It can add up quickly, the dress or tuxedo, hair appointments, the limo, dinner and in some cases the tickets alone cost more than $100 a piece. Another big cost is the ‘promposal,’ which now has risen to $324 on average.

Brian Benham from Benham Advisory Group said to set priorities and a strict budget. Sit down with your teen and discuss all of items that will need to be purchased for the prom and then come up with a hard figure that you’re willing to spend as a parent. Benham said any other costs or overages should be picked up by the student.

Also, don’t forget to jump online and do some research before making a prom purchase.

“It’s fine to fall in love with that particular dress, but look at it and find it different places and make sure that dress or that product or that service, regarding your prom, you’re getting the best price and teaching that skill at an early age is certainly something that will stick with them for the rest of their lives,” Benham said.

Benham said giving your child a flat amount of money to use can also teach them about saving.

“It gives an opportunity for parents to say, hey, we’re going to pay 75 percent of this, but we’re not going to go over, so you’re going to be responsible for any overages or if you spend a little bit more in one area, you probably should cut back in another area,” Benham said.

Only about 1 in 5 teens say they know how to manage money, so Benham said let them keep whatever money in the budget they don’t spend. Then he suggested opening a bank account with those savings.