Getting engaged feels like a whirlwind of excitement – but planning a wedding can in some cases make the heart flutter in a bad way. This is particularly true if you don’t start with the practicalities and tackle budgeting early.
To remove some of the stress and to help keep things as simple as possible, Simon Ripton of Ikano Bank offers his top tips on how to budget for a wedding:
Set expectations
Before creating a budget take time to research the cost of everything you think you want for your big day. This will help paint a picture of an overall budget. By working through a simple checklist of the necessities, plus any extras you want, you’ll be able to total up costs to form a realistic target.
You might be pleasantly surprised by the cost of some factors, while others might come as a shock.
And by investigating individual costs and comparing different options you could lower your budget too.
Asking the (really) big question…
Yes, you may need to talk to your parents and future parents-in-law about money. Unfortunately for many, the days of the ‘father of the bride’ picking up the bill for everything are over. Nevertheless, in 2016 the ‘bank of mum and dad’ did contribute £5,300 to the average wedding, so it’s worth a tricky conversation or two.
Alternatively, think about whether anyone in your family has a skill or area of expertise to offer your wedding. For example, could a friend or family member be responsible for your wedding cake? Or could anyone help with arts and crafts to help decorate your venue? Or are there any budding photographers in your family who could capture the special day?
You could save a small fortune by enlisting the help of friends and family, easing the financial burden on yourselves or the bank of mum and dad.
Start saving now
Our research also shows that 42% of the average wedding spend comes from couples’ own savings. So, if you don’t have a regular saving routine start saving small, for instance £10 a week, then increase the amount every time you get paid. Try putting money into an easy access savings account, which will allow you to dip in and out if needs be.
On the other hand, if you’re a pro at saving and already have a lump sum, a fixed-term savings account will lock your money away for at least a year which will stop you spending it, and you’ll earn interest on what you’ve saved – giving you extra towards the big day.
Consider the best ways to borrow
Although you may want to use your own savings to pay for your wedding, you should also consider whether borrowingpart of the budget would suit your circumstances.
For some, the structure of a fixed-term, fixed-repayment wedding loan might be particularly helpful. You’ll be able to see exactly what you’re going to borrow and what your monthly repayments will be. Our research shows that across the UK, 12,000 couples took out a wedding loan last year.
Alternatively, using a 0% interest credit card could be a good option if you’ve got a good credit rating, and you’re confident you’ll be able to pay the balance before interest is charged after the introductory period. If you choose to do this, you wouldn’t be alone in relying on extra support to spread the cost of pay for your big day. Last year UK couples had an average credit card bill of £900 after their wedding.
But you should only use a credit card if you know you’ll have the means to pay if off. Make a budget planner to see how much your weekly/monthly income and outgoings are so you can work out what repayments you can cope with.
Keep it fun, and work together
The silver lining of saving for a wedding is that you and your fiancé(e) are in it together – it’s part of your journey as a couple.
Or alternatively if you like a little healthy competition, you could reduce the monotony of saving by seeing which of you can win the savings race! One option is designating jars or a joint account as a saving space, then competing to see who can contribute the most each week, the winner gets to choose how you spend the weekend – or maybe even the honeymoon.
And finally, crowdsource…
Speaking of honeymoons… you wouldn’t be the only couple to think about asking your guests to cough up for one aspect of your wedding. Arguably, a honeymoon isn’t part of the ceremony – and it’s increasingly popular to ask for donations instead of wedding gifts. There are websites that help you do this (for example buy-our-honeymoon.com) or you can choose to ask for cash donations rather than traditional wedding gifts. Every little helps!
Simon Ripton is Head of Consumer Banking at Ikano Bank.
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