Families Spending an Average of $1,078 on Prom: Too Much, Too Little, or Just Right?

Schools may be cracking down on sexy dresses, but prom spending is on the rise. According to a recent Visa survey, this year families are spending an average of $1,078 on the springtime rite of passage. That is an increase from the $807 average last year.

Where is all this money going you may be wondering? The most costly item is usually the tux or the dress, and these days, families are willing to spend more for one-of-a-kind outfits.

"There's a general sense of people wanting to be differentiated," said Jatlow Levy, a retail strategist at consulting firm Kurt Salmon. "Going to a national chain and getting the same dress that 18 other girls have is not a chance for me to differentiate myself or express my individuality, which is such an important part of my social experience today."

But let’s not forget all the other prom expenses: dance tickets, corsages and boutonnieres, rides in limos or party buses, professional hair and makeup services, visits to the nail salon, new shoes and jewelry.

And this kind of “social-arms-race spending,” as Jason Alderman (director of Visa’s financial education programs) describes it, is not limited to the extremely wealthy. According to the survey, parents in one of the lowest income brackets reported planning to spend the most on prom. Those in the $20,000 to $29,999 salary range will spend more than $2,600—that’s twice the national average—while families in high income brackets plan to spend between $700 and $1,000.

So what do you think SodaHeads? Is $1,078 too much (or too little) to spend on prom? Or is it just the right amount to make it a special night to remember forever?