Planning A Wedding: Can You Afford The Costs?

Planning a wedding can be a daunting task, especially when it comes to finances. The average cost of a wedding varies depending on location, guest count, and other factors, but it typically ranges from $19,000 to $35,000. With such high costs, it's no surprise that many couples struggle with the financial burden of their big day.

There are several ways to approach funding a wedding. Some couples opt for the traditional route, with family members contributing financially. Others choose to save up and pay for the wedding themselves, which can involve setting up a dedicated wedding fund and making sacrifices to cut back on expenses. Credit cards can also be used strategically to earn rewards or take advantage of promotional interest rates, but it's important to avoid falling into debt. Personal loans are another option, but it's crucial to understand the risks and repayment terms before borrowing.

Ultimately, there is no one-size-fits-all solution to affording a wedding. It's essential to evaluate your financial situation, set a realistic budget, and plan accordingly. Whether you save aggressively, seek help from family, or get creative with funding sources, it's possible to have the wedding of your dreams without breaking the bank.

Saving for a wedding

Start with a Realistic Budget:

The first step is to calculate how much you can realistically spend on your wedding. The average cost of a wedding varies depending on location and other factors, but it is typically around $35,000. Consider your income, expenses, and how much you can save each month to determine your budget. Be honest about what you can afford, and remember that it's essential to stick to your budget to avoid starting your married life in debt.

Create a Detailed Plan:

Break down your budget into categories such as venue, catering, attire, flowers, and entertainment. Prioritize the areas that are most important to you and allocate your funds accordingly. Create a spreadsheet or use a wedding budget planner to track your expenses and ensure you don't overspend.

Save Aggressively:

Once you have your budget, it's time to start saving. If possible, start saving as early as you can to give yourself a longer window to reach your financial goals. Calculate how much you need to save each month to reach your target and make sure you consistently contribute to your wedding fund. Consider cutting back on non-essential expenses, such as dining out or subscriptions, to maximize your savings.

Compare Vendors and Look for Deals:

Shop around for the best prices on wedding essentials. Get multiple quotes from vendors and compare their services and prices before making a decision. Look for seasonal sales and discounts, especially on items like wedding dresses and rings. You can also consider DIY options for certain aspects of your wedding, such as making your own centerpieces or favors, to save money.

Consider Alternative Options:

Opting for a non-traditional venue, such as a restaurant or a vacation house, can be a great way to save money. These venues often have lower rental fees and may include tables, chairs, and linens, reducing your overall costs. Additionally, choosing a less popular month or day for your wedding, such as January or a weeknight, can also result in significant savings.

Seek Help and Be Creative:

Don't be afraid to ask for help from family and friends, whether it's financial assistance or DIY contributions. You can also get creative with your savings by picking up part-time work or freelance projects to boost your income. Remember, saving for a wedding is a team effort between you and your partner, so make sure to communicate and work together towards your financial goals.

Creative ways to make more cash

Planning a wedding can be expensive, but there are creative ways to make more cash to cover the costs. Here are some ideas to help you boost your budget:

Get Creative with Cash Gifts:

Instead of the traditional envelope, present cash gifts in a fun and personalised way. This could be through origami, where you fold bills into creative shapes like roses, butterflies, or even an origami bride and groom. You could also pair cash with a meaningful card, a book about marriage, or a CD case of the newlywed's song.

Virtual Platforms and Gift Cards:

Consider using virtual platforms like Zelle, Venmo, or PayPal to send or receive cash gifts. This adds a modern twist to your wedding and can be more convenient for guests. You can also opt for gift cards from credit card companies or specific stores, allowing the couple to choose what they want while avoiding the hassle of returns.

Funds for Specific Goals:

Instead of a general cash gift, consider contributing to the couple's specific funds, such as a honeymoon fund, down payment on a new home, or even a puppy fund. Many online wedding registries include these options, making it easy for guests to support the couple's dreams.

Donate to Charity:

If the couple is philanthropic, they might appreciate donations to a charity or fund they support in lieu of traditional gifts. This could be a cause they are passionate about, such as animal welfare or world hunger. It's a way to spread love and make a positive impact while celebrating their marriage.

Stock and Bond Gifts:

For a unique and long-lasting gift, consider giving stocks, bonds, or precious metals like gold and silver. These can increase in value over time, providing a thoughtful investment in the couple's future.

Save Money on Wedding Expenses:

One way to make more cash is to cut down on wedding expenses. Opt for a weekday or off-season wedding, choose affordable invitation options, embrace minimalist floral arrangements, repurpose design elements, combine food and favours, and skip the expensive liquor options. These small changes can add up to significant savings.

Pros and cons of taking out a loan

The average cost of a wedding is between $19,000 and $35,000, and it can be challenging for couples to afford this expense. Some couples may consider taking out a loan to cover the costs, but there are pros and cons to this approach.

Pros of Taking Out a Loan for a Wedding:

• Convenience: Wedding loans can provide a convenient way to access money quickly, especially if you need to pay upfront deposits for venues and vendors.
• Easy to Obtain: In many cases, you can apply for a wedding loan online with minimal documentation, and the funds can be deposited directly into your account within a few days.
• Lower Interest Rates than Credit Cards: Wedding loans may offer lower interest rates compared to credit cards, especially if you have a good credit score and strong credit history.
• No Prepayment Penalties: Some loans allow early repayment without penalty fees, which can reduce overall interest costs.
• Improved Credit Score: Successfully paying off a wedding loan can help build or improve your credit score, making it easier to obtain loans in the future with lower interest rates.

Cons of Taking Out a Loan for a Wedding:

• Interest Payments: Taking out a loan means you'll be paying interest on the borrowed amount for several years, potentially adding thousands of dollars to your overall wedding expenses.
• Starting Marriage in Debt: Beginning your married life with debt can cause financial stress and delay other important life goals, such as buying a house or starting a family.
• Impact on Future Loans: Existing loans may make it more difficult to qualify for new loans, such as a mortgage or car loan. Lenders consider your existing debt when evaluating your ability to take on new loans.
• Encouraging Overspending: Having a large sum of money from a loan may tempt you to increase your wedding budget or upgrade certain aspects, leading to higher overall costs.
• Potential for High-Interest Rates: If you don't have a strong credit score, you may be stuck with a high-interest rate on the loan, making it even more expensive.
• Additional Fees: There may be unexpected fees associated with the loan, such as origination fees, prepayment penalties, or late payment fees.

Using credit cards

While it is not recommended to go into debt to pay for a wedding, credit cards can be a useful tool to help you pay for your big day. Here are some tips on how to use credit cards to pay for your wedding:

Choose the Right Card

There are many different credit cards on the market, so it is important to choose one that fits your needs. Consider cards that offer rewards or sign-up bonuses, such as travel points or cash back. Look for cards with a 0% introductory APR to give yourself some interest-free breathing room. Also, be mindful of any fees, such as foreign transaction fees if you are planning a destination wedding.

Understand the Rewards Structure

Credit cards typically offer one of three types of reward structures: the sign-on bonus, the flat-rate cash back, or rotating categories. The sign-on bonus gives you miles or points after you spend a certain amount. Flat-rate cash back gives you a certain percentage of cash back every time you make a purchase. Rotating categories give you a small percentage of cash back on every purchase, usually 1%, and then increased cash back in different categories each quarter.

Be Mindful of Your Spending

Do not change your regular spending habits just to take advantage of credit card rewards. Your goal should be to match a credit card to your regular spending. Also, be cautious about spending more than you can afford to pay back. Just because you have a $5,000 credit limit doesn't mean you should spend it all on your wedding.

Timing is Everything

If you are applying for a new credit card, do so a few weeks before you need to make any big deposits. That way, you will have the card available when you need it. Also, be mindful of any spending minimums required to earn sign-up bonuses. A big deposit, such as a catering payment, could help you reach that spending minimum and earn you a generous bonus.

Pay it Off

If you use a credit card to pay for your wedding, go into it with a plan to pay it off as soon as possible. Interest charges can add up quickly, so take advantage of any 0% APR promotions and try to pay off your balance before the promotional period ends.

Other Considerations

• Be mindful of credit card processing fees charged by vendors. Some may charge an extra 3-4%, so it may be better to pay those vendors in cash.
• Set your own maximum on your credit card to avoid overspending. Call your card issuer and ask them to lower the limit to a reasonable amount.
• If you are planning a destination wedding, consider a card that earns you points for hosting your wedding at a specific hotel brand.
• If you are already a loyal customer of a particular brand, consider a co-branded credit card that will earn you extra rewards. For example, if you are a frequent Marriott guest, consider the Marriott Bonvoy Boundless Credit Card.
• If you are a member of a loyalty program, look for a credit card that will allow you to transfer your points to that program.
• If you are a member of a warehouse club, such as Costco or Sam's Club, consider a card that earns rewards on those purchases, such as the Citi Costco Credit Card.

Asking family for money

Have an Open and Honest Conversation:

Start by having an open and honest conversation with your partner to ensure you are both comfortable with the idea of asking family for financial contributions. It is important that you are on the same page and respectful of each other's wishes.

Timing is Key:

Choose an appropriate time to approach the topic with your family. Avoid springing the topic on them unexpectedly. Instead, give them a heads-up that you would like to discuss wedding planning and finances, and agree on a suitable time for the conversation.

Do Your Research:

Before initiating the conversation, take time to outline your ideal wedding budget, guest list, and vision for the wedding day. This will show that you have given the matter thoughtful consideration and are not making impulsive decisions.

Be Direct but Polite:

When asking for financial contributions, be direct and polite. You can start by sharing your wedding budget and asking for their thoughts and input. For example, you could say, "We've prepared a general wedding budget and would appreciate your thoughts and input. Would you be able to contribute financially to our special day?"

Provide Specifics:

If your family is open to contributing, you can provide more specifics on how their financial support would be allocated. For instance, you could say, "We found a venue we absolutely love, but it's slightly over our budget. Would you be willing to help cover the cost of the venue?"

Be Grateful and Respectful:

Remember that any financial contribution from your family is a generous gift. Express your gratitude and respect their decision, even if they are unable to contribute as much as you had hoped. Keep in mind that their involvement and support can take other forms beyond financial contributions.

Keep Them Involved:

Once you have received financial contributions from your family, be sure to keep them involved in the wedding planning process. Traditionally, those who contribute financially may also have a say in certain decisions. Take their ideas and opinions into consideration, especially if they are funding a specific aspect of the wedding.

Manage Expectations:

Be mindful that your family may have different expectations or cultural traditions surrounding weddings. Be open to hearing their perspectives and find a balance that works for everyone.

Plan Within Your Means:

Ultimately, it is important to plan a wedding that you can afford. Financial contributions from family are not guaranteed, so create a budget that you and your partner can manage independently. If you do receive financial support, consider it a bonus that enhances your special day.

Remember, every family dynamic is unique, so tailor your approach to match your specific situation. Open communication, respect, and gratitude are key to successfully navigating these conversations and ensuring your family feels valued and appreciated.

Frequently asked questions