Saving for the future is a common goal that we often assist our clients- retirement, future healthcare costs, college education savings are all fairly common goals. But what about saving for the cost of future wedding expenses?
According to the results of a study done by the popular wedding website The Knot, who received feedback from over 27,000 couples married in 2019, the average cost of a wedding in the United States was $33,900. This figure includes the cost of an engagement ring, but not honeymoon expenses. Keep in mind that is the average, and the figure does vary depending on location, number of guests, and many other items that comprise planning for the big day.
The average age of when couples are getting married has increased in the last 10 years (30 now for women and 34 for men, compared to 28 and 31 in 2010), which translates to more couples contributing to the cost of the wedding than in the past. However, the parents of both bride and groom are still on average paying for 52% of the cost of a wedding and reception. For families who are asked to shoulder part, or all of the expenses associated with a wedding, coming up with that sort of money can be difficult.
Beginning to save for some of those anticipated expenses now, instead of potentially having to scramble (or worse, go into credit card debt!) to come up with the funds in the future, can go a long way towards relieving any potential stress associated with the cost of the wedding. Taking into account inflation of 3% per year, investing about $100 per month today for the next 25 years and earning 6% per year on the investment would grow into enough savings for a family to pay for the average cost of a wedding without having to dip into any other resources or accumulate debt.
Especially for our clients with young families who are currently balancing enjoying life now, while planning for the future, it is never too early to begin saving for future expenses, even things like our children's wedding. If you have any questions about how to plan for future expenses, please feel free to contact us as we help our friends and families "Move Life Forward."