1. Surely he will pay.
2. I find a lot of stuff on
www.Nordstrom.com and sometimes it will go on sale. They have a great selection there, too.
www.bcbg.com has sales right now, but that may be too much for you. Some will be $300 or so and then marked down to $140. They are great classic dresses you can keep for a while. We also borrowed dresses all the time so we wouldn't have to buy so many formals.
Finally, maybe check a consignment shop.
3. I think it's polite to wear a shorter heel in this case. I'm taller than my husband when I wear heels. He doesn't care now but when we were in college dating, I
never wore heels!