The wedding of your child is one of the most important days in their life. For many people, this will be the first time they have spent so much on a single event, and their wedding budget can seem overwhelming at times. However, it is still possible for you to make this a special day without breaking the bank. It is a good idea for parents who are footing the bill for the ceremony and reception to set aside a certain amount of money periodically to be ready on their child’s big day.
Here are some tips to help fund your child’s wedding:
ENABLE AND ENCOURAGE YOUR CHILD TO BE SELF-SUFFICIENT
When you are setting aside money for your child’s big day, the couple must be able to have at least some input into where it comes from. It can be done by encouraging them to set goals of their own and work towards achieving these goals so they can save up enough on their own. For example, if you are saving towards your child’s wedding, you could start by encouraging them to save for their own house first. This way, they will afford the wedding day and home, which is what most people aspire to buy after marriage.
START SAVING EARLY
The earlier you start saving, the bigger your wedding fund will be. Therefore, it is wise to start planning at least a year ahead of your wedding. Instead of accumulating all your money into one big fund, try setting up a separate savings account and contributing to it monthly. This way, you will accumulate enough money without feeling any pinch in your monthly budget.
It is a good idea to invest money from other sources such as an inheritance or your child’s birthday money. It will help you benefit from compound interest and grow your fund faster. Research different types of investments and opt for those with the highest returns, like real estate and equity funds. You can also invest in real estate projects or start your own business.
GET SUFFICIENT INSURANCE COVERAGE FOR PROTECTION
As you are saving up for this momentous day, it is important to be cautious about your financial future. Ensure that you have sufficient life and health insurance coverage so that if something happens to either of you, your loved ones will not have to bear the brunt of the expenses.
BUDGET FOR ALL THE BASICS IN ADVANCE
Firstly you will need to sit down and make a wedding budget. It does not need to be an extremely complicated affair. You only need to list all the major expenditure areas, such as venue, catering, and entertainment. Then, when you begin approaching vendors (photographers, bridal shops, etc.), ask them for their quotations, and compare them with your budget to see any major discrepancies.
DO NOT DRAIN YOUR RETIREMENT CORPUS
Another big mistake people often make is that they deplete their entire retirement corpus planning for their child’s wedding. This can be avoided by saving carefully over the years, starting with small monthly contributions, which you gradually increase as your income grows. This way, when the big wedding day comes around, you will not be forced to sell your house and car or dip into your emergency funds to make it a pleasant experience.
ENSURE THAT THE WEDDING IS WITHIN YOUR FINANCIAL MEANS
Remember, a wedding can be whatever you can afford. It does not have to take place in the most expensive hotel or have the best DJ in town if you are trying to stay within a budget. It is perfectly possible for two people who do not have much money to spend on a beautiful wedding day by keeping things simple and sticking to the basics. However, one shouldn’t drain all of their life savings on a single event with unnecessary extravagance.
ONLY TAKE LOANS THAT YOU CAN REPAY
The last thing you want to do is take a loan that you cannot repay. If there are any expenses for the wedding that are not covered by your savings, it might be better to wait until you have enough cash saved up to pay for them rather than taking out a loan. And make sure you read all the terms and conditions of the loan before signing anything.
It is essential to start planning for your child’s wedding as soon as possible so that you have enough money saved up and ready by the time the big day arrives. Take care not to overstretch your budget and only take out loans you know that you will be able to repay. Also, remember that a simple wedding with basic amenities can be just as beautiful and memorable as a grand and opulent one. Follow these tips to ensure that your child’s big day is a success without burning a hole in your pocket!