Prom bubble bursts
American households with teens are pulling back on prom spending this year.
The average U.S. household will spend $978 in 2014, according to a nationwide survey released Wednesday by Visa. That's down more than 14% vs. the average $1,139 families spent a year ago on items including tuxedos and prom dresses, limousine rental, tickets and dinner.
The sharp decrease follows three years of steady increases.
'The prom bubble has finally burst! I think people are realizing that prom is a dance, and you don't have to spend like a celebrity to have a great time,' said Nat Sillin, Visa's head of U.S. Financial Education.
States on the West Coast led the nation, spending even more than they did last year. The Midwest, once again, is spending the least, although they too are spending more than last year. The Northeast saw a 27% reduction in spending and the South a 23% drop, when compared with 2013.
Regionally, the survey found:
Western families will spend an average of $1,125 Northeastern families will spend an average of $1,104 Southern families will spend an average of $926 Midwestern families will spend an average of $835
To help families save on prom costs, Visa offers budgeting tips via its free Plan'it Prom app.
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