How can you effectively set aside money for a wedding?
As tradition goes, the parents of the bride pay for the cost of a wedding. While purists certainly remain true to this protocol, it is becoming more common for the families to share the costs. In some cases, the children contribute or even foot the bill entirely on their own.
However, if part of your plan is to save money for all or part of your child’s future wedding, then these three tips can surely help you make the most of your efforts.
Decide How Much You Want to Spend
The cost of a wedding depends on many factors: Where will it be? What day of the week? How many guests? While it is impossible to know these answers years ahead of time (especially because prices will go up in the future), you can think about a number that you are comfortable with now. Later, if you have extra cash, you can adjust the amount if you wish.
Know How Much Time You Have
Saving for your child’s wedding from the time he or she is a newborn is different than if you wait until they are in their teens. Obviously, one gives you more time to save than the other. You already decided how much you want to spend, so if you start early you can put aside a smaller amount each year. Otherwise, if you only have a few years, then it is time to buckle down.
Work with a Financial Advisor
Saving for a wedding is as much a part of your financial plan as saving for retirement, or at least it should be. When you work with a financial advisor, you can get an idea of how much money you need to put aside every year – and when that amount needs to go up or down as your circumstances change (such as if you lose or quit a job, you buy a new house, start a new business, or go back to school). The wedding savings will need to work alongside your other financial responsibilities, which might include a down payment for a home (or second home), emergency funds, and of course, retirement savings.
Guidant Wealth Advisors offers full-service financial advising services for individuals, couples, and families who want to develop a financial plan to try and accomplish all of their goals.