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Marriage remains a major life milestone many spend years working towards. Yet, for many young Americans, fears of descending into debt are holding them back from walking down the aisle. Couples can legally formalize their partnership through marriage registration or civil union. When it comes to celebrations - weddings - tying the knot often comes at a cost.
In June the Thriving Center of Psychology interviewed over 900 Gen Z and millennials about marriage. The results showed the vast majority of respondents want to marry their partner, but nearly three-quarters - 73% - felt it was too expensive to get married in the current economy.
Wedding sticker shock is real. Americans are spending more than ever on their big day thanks to historic inflation trends. Financial consultants acknowledge the pressure young couples are under. Yet, with planning and foresight and a little help from family and fintech, there are still budget-friendly ways to pull off the big day.
The Rising Cost of Weddings
For more Americans, the big day comes with a big price tag. The pandemic severely impacted weddings as in-person ceremonies came to an abrupt halt. Yet, with life back to normal, prices are soaring. The Knot estimates the average United States wedding, including the ceremony and reception, cost $30,000 last year--$2,000 more than what it cost, on average, to get hitched the year prior.
In some coastal cities, like Boston and San Francisco, the average wedding reached a whopping $50,000. For many, it is difficult to resist all the trappings of a big bash.
Many hired hands are needed to pull off a wedding, from musicians, photographers, caterers, and chauffeurs. With intricate, personalized designs, wedding cakes are time-consuming to create and, as a result, notoriously expensive. Surveys show they typically cost at least several hundred dollars.
When asked for their advice, financial planners across the U.S. urge couples to stay focused and identify a couple's priorities.
"Budgeting for a wedding is deciding what is and isn't important. It's easy to get lost when planning a wedding and spend too much on things you don't care about," says Caleb Vering, Associate Wealth Advisor for Farnam Financial.
"Couples should establish a firm budget at the beginning of the planning process, whether it's $5,000 or $50,000... wedding is ultimately another budgetary goal and should be viewed in the broader context of one's whole budget."
There are other places money from a wedding can go. For instance, it can get a head start on a mortgage. Considering that the average downpayment for a mortgage nationwide is around $20,000, around two-thirds the cost of an average wedding.
Approached the right way, this pregame phase is an ideal opportunity for the bride and groom to take their relationship to the next level.
"Planning a wedding is a fantastic exercise in teamwork for a couple," says Jessica Bishop, founder of The Budget Savvy Bride, whose site has been sharing resources on wedding planning since 2008.
"From communicating your values and priorities to budgeting effectively and dividing and conquering a long to-do list, wedding planning puts couples to the test," she adds.
"The financial management of it all is a large and challenging aspect, but if you can navigate the process together while sticking to your budget, you'll be in good shape!"
However, it is not only about the lovebirds themselves. Weddings are also about bringing families together.
Family Factors and the Cost of Weddings
Families aren't just guests of honor; they often bankroll the whole extravaganza. A recent report published by Zola found that among 4,000 engaged couples, 42% had all or part of their weddings funded by their parents.
"In many cultures, it's traditional for parents to contribute or even cover wedding expenses. However, while parental help can ease the financial strain, it sometimes comes with expectations or strings attached," says Doug Greenberg, President at Pacific Northwest Advisory. "It's vital to strike a balance to ensure the wedding remains a personal reflection of the couple."
For those who want to go the self-funded route, a range of software solutions are available.
"There are several fintech apps and platforms designed to help couples save. Apps like Twine or Honeyfund allow couples to save together for their wedding or honeymoon," says Greenberg. "Some mutual funds or savings accounts can also be earmarked for wedding expenses."
Bishop also recommends Zeta and Hitched Money, two platforms that boast banking functions and are purpose-built for couples to help them reach financial goals together.
As costs rise, special events that mark major life milestones require more capital. Nowhere is this more true than for weddings. Forging a marriage without breaking the budget is no small feat.
Yet with careful planning, clear communication among all stakeholders, and the help of some fintech apps available to individuals or financial advisors and their wealth tech tools, couples will be in a better position to walk down the aisle in a financially secure style. If they are to happen, dream weddings must meet financial realities.
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This post was produced by Wealthtender and syndicated by Wealth of Geeks.