Prom on a Budget
Already, high school students are planning for Prom night. According to a national survey by Prom Guide magazine, the average high school couple spends anywhere from $400 to a whopping $1,000 on this annual event.
That's not hard to conceive, if you consider all of the expenses: Prom tickets, an outfit, shoes, dinner, hair styling, professional photos, and maybe even a limousine. But there are ways to prepare for staying within the budget.
"It's important to sit down with your kids as soon as they start talking about Prom and discuss expectations," explained Cherrish Holland, financial manager with Lutheran Social Service's credit counseling program. "Create a clear picture before they make plans, or the expectations will be larger than life, and they'll be disappointed-and
in debt."
Here are some basics for helping you and your child prepare for Prom on a budget:
Plan Your Budget: Decide on an amount you can spend. Then, itemize all your expenses to determine where you may need to cut corners. Once you add up all your expenses, divide the total by the number of weeks until prom and you'll know how much to put away each week to pay for everything.
Set Limits: Determine how much money that parents and the prom-goer will each contribute to the budget.
Do It Yourself: Girls can easily cut expenses by doing their own nails, and having a friend or parent style their hair. Prom-goers might also consider throwing a pre-prom dinner party at home with a gourmet meal. Parents could even prepare and serve this meal.
Shop For Bargains: Shave expenses by buying a dress at a consignment store, or shopping for a discontinued bridesmaid dress.
Cut Unnecessary Costs: Skip the limousine; it's a big drain on your budget. Borrow costume jewelry.
Start Planning For Next Year: After Prom, shop for a sale-priced dress for next year's event. Set your Prom budget for 2002 and begin saving for expenses now. Depending on typical costs for this big night, you could be setting aside anywhere from $30 to $80 a month.
Some kids and their parents make the mistake of buying now, and worrying later when the credit card bills start coming in. Plan ahead, eliminate anxiety, and enjoy this special occasion.
Lutheran Social Service of Minnesota is a nonprofit, community service organization that provides confidential counseling, debt management and education programs on money management. The agency is also a member of the National Foundation for Credit Counseling. For information about services, call 1-888-577-2227, or visit
www.lssmn.org/debt.
