The Best Way to Finance a Wedding: How to Weigh Your Options

Are you engaged or planning to be soon? Whether you are planning to be married in five years or five months, paying for a wedding can be overwhelming with the many expenses that are thrown your way. As the wedding industry becomes increasingly expensive, it’s essential to have a financial plan where you can keep track of your money and manage it well to stay out of unnecessary debt. In this blog, we’ll break down different ways you can prepare for the wedding you’ve been dreaming of while staying aware of your financial wellness.

What Should You Include In Your Wedding Budget?

Since there are so many moving pieces in wedding planning, you’ll want to nail down exactly what needs to be paid for and when. Before breaking down your budget, you’ll need to decide how many people you want to invite. The guest count will determine most of the largest expenses in your wedding, so that number will be key for what you’ll need to have to pay for your wedding. Consider the size of your wedding you and your spouse want to have:

Elopement – under 25 guests

Micro Wedding – under 50 guests

Intimate Wedding – 50-75 guests

Small Wedding – under 100 guests

Medium Wedding – 100-150 guests

Large Wedding – 150 and above

Once you decide how many people you and your spouse want to invite, you now can determine what you’ll need for your budgeting strategy. While there are some obvious expenses affiliated with weddings, there are some things you may forget about and don’t think to include. Here are some key expenses to include in your budget.

1. Venue

Your venue cost will vary depending on the size and location of your wedding. You’ll want to consider if the venues you’re touring include or offer the following:

• Chairs/Tables
• Décor
• Lights
• Kitchen for catering
• Sound system/stereo
• Security Guards
• Option to stay on property – onsite Airbnb or Vrbo
• Distance to the nearest hotel
• Total hours allowed to be on property for rehearsal and wedding day
• A tent if an outdoor ceremony.

2. Floral Décor

Flowers can be far more expensive than you would think; one arrangement can cost up to $3,000. Even if you just want simple arrangements for the wedding party and minimal table décor, the average cost for wedding flowers can make up 8-10% of your wedding budget.

3. Catering

Whether you want to just serve hors d’oeuvres or a full sit-down meal, you’ll want to set aside a part of your budget for catering costs. The price of professional catering services can add up quickly, so you’ll want to visit different catering businesses to compare costs and quality. You might discover that some vendors have a higher price for less portions. The cost of catering really comes back to the number of wedding guests. On average, couples can spend up to $4,000 on catering costs alone, and you’ll also want to consider if you want to serve alcohol.

4. Wedding Cake

For your wedding cake, prices can vary depending on how intricate you want the design to be and the popularity of the bakery. You’ll also want to consider if the bakery charges a delivery fee and tip after the delivery. Always go to a cake tasting! You don’t want to pay $300-700 for a cake that looks beautiful but tastes awful.

5. Entertainment

Another significant cost to consider is what entertainment you’ll want to have for your wedding, such as a DJ or jazz band. While you may decide just to play music from a Spotify playlist, you still need to know if you need to pay for a sound system, party lights, and someone to run sound and oversee announcements during the reception.

6. Wedding Party

One expense that can add up quickly are needs for your bridesmaids and groomsmen. From the bachelorette trip to gifts the day of the wedding, caring for your wedding party can be pricy, so you’ll want to have flexibility with your budget. Depending on the financial situation of your wedding party, you’ll want to set aside some extra money in case a bridesmaid can’t afford a dress or to have back-up ties for the groomsmen.

7. Wedding Attire for Bride & Groom

The Bride

For the bride, you’ll want to set aside how much you want to spend on your wedding dress, but you’ll also want to consider…

• Alterations
• Shoes (for ceremony and reception)
• Veil
• Perfume
• Jewelry
• Hair Pieces
• Hair stylist (trial appointment and wedding day)
• Rehearsal Dinner Dress
• Bridal Shower Dress (might need more than one if you have multiple showers)
• Bridal PJs for photos
• Clothes for the honeymoon

The Groom

• Tux
• Shoes
• Socks (extra pair for reception)
• Haircut
• Cologne
• Tie or Bowtie
• Vest, cufflinks, or other special items
• Belt
• Dress shirt
• Rehearsal Dinner Outfit
• Formal outfit for wedding shower if doing a couple’s shower
• Clothes for the honeymoon

8. Lodging and Family Accommodations

Depending on the location of your wedding, you might need to pay for lodging your wedding party and close family members. What you and your future spouse decide to pay for is up to you, but it is something to consider in your budget, especially if you are having a destination wedding.

9. Honeymoon

Whether you are receiving financial assistance for your honeymoon or paying it all yourself, it’s important that you don’t forget to include it in your financial plan. The wedding is already an expensive event, so you’ll want to also account for what expenses you are responsible for your trip. Many expenses, such as booking flights, hotels, or excursions, might occur when you’re also making purchases for the wedding. That’s why having a strategy early and keeping up with your payments is crucial for your financial well-being. Costs for honeymoons can vary drastically, so here’s how to narrow down what to budget for your trip.

Accommodations – 36%

Travel – 33%

Food & Drinks – 31%

Activities – 30%

Keep in mind these numbers will equal more than 100% due to couples who valued each category uniquely in the survey from the Knot.

10. Wedding Bands

It’s time to put a ring on it! The wedding bands are essential for your ceremony and your marriage. Aside from being an integral part of your wedding, they are also an important part of your budget. Wedding bands can be $500-$2,000 each.

After purchasing your bands, you’ll want to be sure that they are covered by insurance. Some jewelry stores offer a warranty plan you can purchase with your ring, but it can be more worthwhile to have it covered by your insurance company. That way if you move away or something happens to your estate, they are protected wherever you go. Typically, the cost for insuring your ring could be 1-2% of the ring’s value. That means if you have a $2,000 ring, you’ll pay around $20-$40 per year.

Are There Alternative Ways to Save on Wedding Costs?

As you and your future spouse begin implementing your wedding plans, there are some ways you can be mindful to cut down on costs.

DIY Décor

• Make welcome signs, table numbers, and other items yourself. Ask your friends and family to help you along the way.
• Put together bouquets using flowers from Trader Joe’s, Sam’s Club, or Costco. Make it fun by having a bouquet party with your bridesmaids.
• Order lanterns, candles, and other items in bulk from Amazon instead of renting. Depending on the item, it may be cheaper to just purchase instead of rent from a professional event vendor.
• Ask your venue what décor they have already to use. It won’t hurt to go ahead and ask, even on your first tour with them, to see what they offer for free instead of purchasing or renting items you don’t need.

Attire and Wedding Bands

In-House Alterations are a game-changer for saving money. When shopping for your wedding dress, ask the store if they have an in-house seamstress. Some bridal boutiques have a seamstress on-site who can answer questions you may have about the dress you’re considering to buy. Before saying yes to the dress, have the seamstress look at it to see what alterations are needed and if they are possible with the style you chose. Their insight can provide you a clearer picture of how much you’ll need to pay in alterations and protect you from purchasing a dress that may not work.

Rent the tuxes instead of buying them brand new to lower costs for the groom and groomsmen. Tux rentals can sometimes include the shoes, socks, and other essentials along with the suit itself, so you can save more money overall.

Do your research with wedding bands! While there are popular name brands like Tiffany’s and Brilliant Earth, try looking for lesser-known brands or a local jewelry shop to see what cheaper deals you can find while also getting great quality rings. Manly Bands is an option for the groom’s ring that offers quality rings while also being conscious of your budget.

Order bridesmaids dresses online. Another way to cut down on costs is to order bridesmaids dresses from an online company like Azazie. Stores like Azazie offer a wide range of dresses with cheaper prices, with dresses ranging from $69 to under $200.

Try to Plan it Without a Wedding Planner. Wedding planners can be very expensive, so try to schedule everything you can without hiring a professional. That being said, planning a wedding is no easy feat, so be sure to ask for a lot of help from friends and family along the way. While you can try doing everything yourself, that will just create stress for your wedding season and a strain on your financial well-being. Hire a day-of wedding coordinator instead to help you and your family enjoy your big day stress-free!

Limit alcohol. Alcohol can significantly impact your catering budget, especially if you want to have a menu of drinks for your guests. One way to not make the bill too overwhelming is to limit the drinks to one per person or have a cash bar.

What Are the Most Common Ways to Finance a Wedding?

With weddings that can cost over $20,000 or more, it can be tempting to decide how you want to finance your expenses. Before beginning to pay for your venue and other major expenses, you’ll want to consider how you want to manage your payments together.

Save Early

The more time you have before your wedding, the more time you have to save money for your wedding and honeymoon. Start putting your savings into a high-yield savings account, so you can grow your money as the wedding draws near. The key thing to remember is you want to go into as little to no debt as possible. Even if you and your spouse are wanting a shorter engagement, it is essential to be proactive in caring for your financial stability. Working together towards a shared goal can help establish trust between each other.

Accept Generosity

You may be surprised how generous others can be when it comes to wedding season. While you don’t want to make financial decisions based on someone saying they’ll give you money before they do, being open to receiving monetary gifts from loved ones can help lessen some of the financial stresses of wedding planning. You can use the money to cover key remaining items on your budget.

Open a Credit Card, With Limitations

We realize you may not be in place where you can pay for all your wedding expenses upfront. For certain situations, it is fine to open a credit card to help make your payments manageable. A key thing to remember is finding a card with low interest and finding a credit card with rewards or cash back points, which you can turn around to use for your wedding costs.

How Can You Make the Most of Your Wedding Registry to Reduce Expenses?

Through the hustle and bustle of your wedding and honeymoon, it can be easy to forget about all the things you’ll need on your wedding registry for your new home together. Your registry can look different depending on how old you and your spouse are. If you are just out of college, you might need to register for every day essentials like bedding, dinnerware, and other necessities. Building your registry intentionally can help prevent you from having to pay a lot out of pocket.

A tip to know the price and number of gifts to put on your registry can look like this:

25% of gifts – under $50

50% of gifts – $50-$200

25% of gifts – above $200

The $50-$200 range is good middle ground, especially if you are having a medium-sized to larger wedding. People like to have options to choose from, with some of your guests buying one large expensive item to others who like to buy multiple less expensive ones. Having a variety of prices can help ensure that most of your items will be purchased, leaving you with less to worry about financially and also being mindful of your guests’ wallets.

Build the Financial Foundation of Your Marriage with Leaders

You already have a ton on your plate financially navigating the wedding season, so let Leaders handle the rest! We are happy to help you and your future spouse as your financial journeys become one. Be sure to check out our free smart budgeting tool kit to learn how you build a budget not only for your dream wedding, but your financial future.

Leaders is federally insured by the NCUA.