The annual prom season is approaching, and kids and their parents are digging deep to pay for the big event. According to Visa's third annual survey of prom spending, the average family will put out $1,139 on the prom for expenses including clothing, corsages, limos, event tickets, hair and makeup this year. That amount is up from the $807 average spent on proms just two years ago.
"Prom has devolved into a competition to crown the victor of high school society, but teens shouldn't be trying to keep up with the Kardashians," said Nat Sillin, Visa's head of US Financial Education, in a statement. "The prom is an opportunity to teach teens how to budget. If they want that sparkling dress, fancy dinner, and limo ride, this is the opportunity to set a budget and save."
According to the Visa, parents will pick up 59 percent of prom costs while kids with pay the balance. Amazingly, lower income households as well as single parents will spend the most on proms. Families who make less than $50,000 a year will spend $1,245. Single parents will spend $1,563.
To help deal with rising costs, some consumers are turning to consignment shops, retailers and websites that sell previously owned dresses.