How much should I spend on a new TV?

How much money should my family spend on television? I'm always a bit skeptical when it comes to spending money on television. I know for many it is a very important form of inexpensive entertainment. For others though, the cost of owning and maintaining cable television could be invested in more worthwhile activities. If you're thinking about investing in a television, be sure to think of the message it sends to your family. If the investment is large, this might signify to them that television watching is very important. Will your larger investment be useful, or will your smaller investment be regrettable?

The amount of money a family spends on their television should depend on how much time they plan to spend in front of the television, and on what else the television will be used for (games, movies, computing, etc..)

Minimal TV Watching: Families that are in this category wish to encourage their children and other family members to spend time outside, reading, playing games together, or sitting around the table talking. These families might watch television 1-2 hours a day, but do not want or cannot justify the additional expense of cable television because they simply do not use the television that much. These families watch cartoons on Saturdays, occasionally the local news, and occasionally a broadcast movie. These families may rent movies 2-3 nights a month and own a basic DVD player.

Average Cost of a 19-24 inch LCD television with digital brodcast antenna = $300-500

Moderate TV Watching:Families in this category use their TV an average amount. Their children may be in the teen age group, and spending time at home together watching TV/playing video games is their preferred night at home as a family. They may subscribe to basic or upgraded cable, purchase movies from their television subscriber, own a large collection of DVDs, and rent on a regular basis of 1-2 movies per week. These busy families may also own a gaming console, a DVR device, and an MP3/audio system.

Average Cost of a 24-40 inch LCD television = $400-1000 + $500-600 per year on cable.

Above Average TV Watching:Families in this category use their TV at least 5 hours each day. They may have high school age or college age students living with them, they may be single or childless households, or they may just enjoy playing video games and watching several movies each week with their families. These families may also be sports fans who watch subscription games and throw gameday parties. These families may have multiple televisions, expanded cable, DVR, two or more gaming consoles, a Blu-ray player, and surround sound.

Average Cost of a 40-65 inch LCD/Plazma television = $1500-$3500 + $800-1000 per year on cable.

How much money should my family spend on a new television? Not all families will fit neatly into one of these groups, but seeing where your family falls here should help you decide if you want to spend more on TV, or less. In my opinion, it makes less sense to spend $2000 on a large television if you will not be watching cable, movies, sports games, and high end video games on that television. Broadcast television will work just as well on a smaller television and serve your family's basic needs for news, educational television, and sitcoms. Similarly, a 19 inch television just will not be as satisfying for a 4 player evening around the Wii, or for entertaining friends on Super Bowl Sunday. Planning for your intended uses in advance will help you pick the right price point for your next television purchase.