Budget Busting Weddings

Take Charge America Offers 6 Alternatives

PHOENIX, Ariz. (May 17, 2006)... As wedding season kicks into full gear, newlyweds are busy making plans. Memories from the big day are supposed to last a lifetime—not the bill.

According to a recent survey by the Conde Nast Bridal Group, publishers of Brides, Modern Bride and Elegant Bride, the average cost of a wedding has increased 100 percent since 1990 to nearly $28,000.

Mike Sullivan, director of education for Take Charge America, a non-profit credit counseling company, says cutting wedding costs could prevent a lot of financial heartache in the future.

“Your wedding day will be one of the most memorable and exhilarating experiences in your life, no matter how much cash you shell out,” he said. “Exceeding your budget can put extra strain on your marriage as soon as the wedding day has ended.”

The Conde Nast Bridal Group says 36 percent of couples end up paying more for their wedding than they originally planned.

Thinking of charging it? Sullivan says that’s a bad idea too. “You could still be paying off the wedding bill when the kids enter college.”

Sullivan has six alternative ways to spend the money couples are thinking about spending on their wedding:

• Pay Off Debt – High-interest rate credit cards can take decades to pay off. Paying them off now, could save you tens of thousands of dollars in the long run. You could also consider putting the money toward car or student loans.
• Create a Nest Egg – Are children in the near future? Use the money you would have spent on a wedding to create a nest egg. Set aside money for baby expenses, home remodeling or relocating. You could also create an emergency fund for unexpected events like job loss or health problems.
• Down Payment for New Home – If your first big purchase together is a new home, consider putting part of your wedding budget toward a down payment. A larger down payment will decrease mortgage payments and free up more money in your daily budget.
• Fund Your Education – Are you still in college, or thinking of going back? Keep in mind that the average budget-busting wedding costs the same as four years of tuition at a public college or university. If going back to class isn’t in your future, what about your children’s future? Start a college fund to prevent the financial pinch 18 years down the road.
• Invest – If you’re entering the marriage without any debt, start saving for the future now. Consult a financial planner to help set you up on an investing track with your individual goals in mind, like retiring early or extensive traveling.
• Save for Retirement – It’s never too early (or late) to start saving for retirement. You can use part of your wedding budget to set up an IRA or contribute more money to an existing one.

About Take Charge America
Founded in 1987, Take Charge America, Inc. is a non-profit organization headquartered in Phoenix, Arizona. TCA offers a variety of services including financial education, credit counseling, and debt management. To learn more about TCA or its programs please call 1-800-823-7396 or visit www.takechargeamerica.org.