Saving for a Wedding – The Avg is $33,391* in the US
Weddings are awesome but brushing financials can costs you thousands
Congratulations on your upcoming nuptials! Getting married is an exciting event, but with so much to think about, it can be easy to put off the discussion about how you will manage your money together after your wedding day. Taking time before you say "I do" to agree on how you will deal with your finances as a married couple will pay off in the long run.
- Planning your wedding
- Organize your finances
- Discuss financial goals
- Organize your will, insurance and retirement
Planning your wedding
Weddings can be very expensive. On average, weddings cost American couples $33,391, according to The Knot. There are multiple ways to keep the costs of your wedding down without spoiling the magic of the day.
Follow these steps to keep wedding costs under control:
- Decide how much you want to spend on each item, including food and drinks, the venue, cake, the suit and the dress and music to create a total cost of the wedding.
- Start saving for your wedding now. Open a savings account or a certificate of deposit to earn a high interest rate.
- Look for ways to cut costs by researching online or asking other people how they saved money on their weddings.
- Avoid using your credit card whenever possible. Pay for big items, like the wedding dress or reception venue, in installments, so you aren't left with huge debts that can take years to pay off.
Organize your finances
Relationships can run into trouble if people have different saving and spending habits, so it's important to discuss your habits with your partner. Decide whether you want to share a joint account, keep separate accounts or have both.
Having a joint account can make it easier to pay shared bills, but it can be risky to pool all of your money into one account.
Some couples prefer to keep their own separate bank accounts and transfer a set amount each payday into a joint account to cover shared bills. This option may be best if you have very different incomes or if you just want your own spending money.
Some people simply keep their own separate bank accounts and work out who is responsible for each type of payment, rather than setting up a joint account. Discuss who is going to pay which bills. This will keep you from incurring late fees or accidentally paying the same bill.
Every couple is different, so talk to each other to determine which option will work best for you.
Discuss your financial goals
You and your partner may have completely different financial goals and not even realize it. For example, one person may prioritize paying off the mortgage as soon as possible, while the other wants to save money for an overseas vacation.
The best thing to do is sit down and work out the goals you want to save for together. Whatever your plans are for the future, talk about them with your partner so you are both clear on what you want and when. Then you can work together to achieve your goals.
Organize your will, insurance and retirement
Once you're officially a family, anything that happens to you will directly affect your partner. Make sure to update your will, insurance policies and retirement plan to reflect your new married status.
- Update or create a will. A will can include how your assets will be shared, who will look after your children, what trusts you want established, how much money you’d like donated to charities and funeral instructions. Appoint someone as your power of attorney who will have the legal authority to look after your affairs on your behalf.
- Your insurance policies should reflect your new status as a couple. If one or both of you have health insurance through your employer, determine which plan makes the most sense for both of you, or if it’s better for you to remain on separate accounts.
- Discuss your retirement plan. Update your beneficiary details and discuss how you can build your future together.
The single best thing you can do to keep your finances on track as a couple is to keep talking to each other. By having regular conversations about your bills and your savings, you will both know whether you’re on track to achieve your goals or if you need to adjust your plans.