Most parents would probably like to give their child the gift of a memorable wedding day. That includes me! When it comes to my own daughters, I’m tempted to just pull out my wallet and open it wide for whatever they want. But weddings are not cheap. Helping finance your child’s wedding can be a big expense, and it takes careful planning to make it more manageable.
Here are some tips for providing financial support for your child’s wedding:
Determine your own financial needs and create a limit. Parents can be tempted to give more than they can afford. How much can you truly afford to contribute? If putting on the wedding of the century puts you behind on your retirement plan, your mortgage or any other expenses, you cannot afford it. Make sure to avoid getting into debt for the wedding.
Discuss how much you will contribute to the wedding. It’s important to have open and honest communication with your child about your financial situation and what you’re able to contribute to wedding expenses. This will help avoid any misunderstandings or hurt feelings down the line. Ensure that the engaged couple understands that they will be responsible for any expenses beyond what you contribute.
Set a budget. Before you start spending money, it’s critical to create a wedding budget. This will help you stay on track and avoid overspending. List all the expenses you’ll need to cover, such as locale, venue, food, beverages, entertainment and décor. Allocate a specific amount of money to each item.
Prioritize needs over wants. Once you have a budget in place, prioritize the wedding expenses that are most important to you and your child. For example, if your child really wants a specific venue, you may need to cut back on other expenses to make it work.
Have written contracts with each vendor. I have heard many stories about unethical vendors who present invoices that contain surprise charges. Make sure to have a contract — and to read the fine print of everything you sign. There may be additional expenses that were not discussed in initial meetings with vendors. Sort out the details well before the wedding.
Consider alternative options. Money can flow quickly when planning a wedding, especially with inflation. But there are many ways to save money and stick to your wedding budget without sacrificing quality. For example, you could have the wedding during the offseason, choose a less expensive venue or create some of the decorations yourself. Get creative and tap your network for ideas.
Plan ahead. If you know your child is destined to be married, start saving early. Many parents will create a wedding fund and begin saving before their child is even engaged to be married. Planning ahead gives you more time to build up your savings and avoid any last-minute financial stress.
If you’ve saved for a child’s wedding but learn your child isn’t interested in a wedding, you may also give them the option to use the money you’ve saved for them as a down payment on a home, a business or other large expense.
Either way, with some forethought and planning, you can be ready to support your child’s next step. A CFP® professional can help you get started. Find yours today.
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