Curious about how people afford weddings, particularly when costs are at an all-time high. Well, it turns out that there are a few different methods that people use:
Here is what you need to know about these avenues:
How Do People Pay for Weddings?
The top three ways that people afford weddings are by borrowing money from financial institutions, paying via cash or savings, or getting assistance from family members and friends – it is becoming increasingly common for couples to pay for their own wedding.
How Do Couples Pay for Weddings by Borrowing from Financial Institutions?
It is estimated that one in five couples will borrow money from a financial institution like a bank to pay for their wedding.
The most common way – around 40 percent of couples – to do this is to make payments via a credit card. It is believed that couples take out up to $8000 on their credit cards.
This means that many of these couples will start their lives together in debt. However, a significant portion of these individuals are attempting to pay off their debt within 12 months of taking out these loans.
Others expect to pay off their credit card loans within two years of borrowing the money.
There are also many couples who will take out loans for their wedding in addition to or instead of credit cards. The benefit of loans instead of credit cards is that the interest rate tends to be much lower. Therefore, the risk of continued debt is lower as well.
Some couples choose to take out loans specifically for weddings. These are aptly named wedding loans. Others, though, will take out personal loans instead.
The only downside with loans is that it isn’t easy for everyone to get approved. Ideally, you should have a strong financial history along with a good credit score.
Otherwise, your application may be rejected or you may be quoted a higher interest rate.
It is possible for couples to take out a loan together as this improves their odds. Or, if this isn’t possible, you could ask a trusted family member or friend to co-sign a loan for you.
How Do People Pay for Weddings in Cash?
As mentioned, a greater number of couples are tackling the cost of their wedding by themselves. At the same time, these couples don’t want to start off their married lives in debt.
As there is no rush for people to get married within a specific period of time, couples are taking longer engagements. They are using this time to save up an increasing amount and use these savings to pay for the wedding.
In some cases, the couples attempt to temporarily increase their income by taking on other jobs or taking on more responsibilities at work.
There are also those who will dip into existing savings. Now, those who do this are able to typically pay for their wedding without accumulating any or much debt.
The only disadvantage is that the couple then have to build up their savings from scratch again. Still, many find this preferable to being in debt.
How Do Couples Pay for Weddings With the Help of Family Members?
At one point, it was common – and expected – practice for the bride’s family to pay for most of the wedding if not all of it. The groom’s family pitched in.
However, as generational wealth fell with the 2008 market crash, this happened less and less. In fact, couples will cover about 50 percent of the cost of their wedding by themselves.
The rest of this may be made up by the bride and groom’s family. Although parents used to be the primary contributors, these days siblings, grandparents, and other family members will provide funds.
The only issue with having family pay for your wedding is that they then have the right to be involved. As a result, they often have to be consulted or provide input on important decisions such as the venue, catering, etc.
This can lead to conflict between the engaged couple and their families. And, if both sides of the family are pitching in, this can issues between the bride’s and groom’s families as well.
What is the Best Way to Afford a Wedding?
The best way to afford your wedding is to save up money specifically for this occasion. Not only is this the most stress-free option, but it also ensures that you don’t carry any debt into your new marriage.
If possible, you shouldn’t touch the savings that you currently have. These savings can be used for a mortgage, down payment on a car loan, or as a rainy day fund.
One of the ways that you can save up for a wedding is to have a longer engagement. Create a budget for your wedding and then determine how long it would take to save up for this kind of ceremony. This will give you an idea of when you should have your wedding.
The other option is to find another form of income. You and your partner can join a rideshare service, deliver food, sell clothes and belongings online, try freelance work, and other tactics to make some money.
Budgeting – The Key to Affording a Wedding
The best way to afford a wedding, though, is to have a wedding that you can actually afford. Now, this doesn’t necessarily mean that you have to do something less fancy.
However, wherever possible, try to save money. This could be getting married at an unpopular time of the year, not having a sit down dinner, or even reducing the number of people that you invite to your wedding.
In previous years, people would relegate much of the work to wedding vendors or creators. However, they are increasingly handling much of the tasks by themselves.
From decorating to DIYing center pieces, more and more people are cutting down of supplies and labor by tackling such jobs by themselves.
How Do Couples Afford Weddings?
The main ways that couples afford weddings is by taking out loans or paying for certain services using their credit cards – however, an increasing number of people are also either saving up money or using their savings while there are also those that borrow from family members.