How to save money and plan for wedding season

TORONTO –
Ah weddings. For many, the summer months are inextricably linked to the sound
of clicking champagne glasses, soft violins and wedding bells chiming.

But the
sound of a bursting cash register may be more appropriate.

The
average cost of a wedding in Canada is more than $22,000, according to a
Weddingbells.ca survey of 2,309 readers. 

Throw in
a honeymoon, and the average couple in Canada will spend nearly $28,000 just to
say ‘I do.’

Depending
on where you live, the cost can skyrocket. Weddings in larger urban centres
like Toronto and Vancouver generally come with a bigger price tag. The cost of
renting a wedding venue in Toronto, for example, can range anywhere from $7,000
to $20,000.

So what
can the happy couple do to avoid starting out their marriage buried in wedding
day debt?

Global
News spoke to Ahmad Dajani, Vice President of Investments, GICs and Sales Tools
at Scotiabank to find out what couples can do financially after the big question
has been popped.

Global News: What’s
the most important financial consideration married-couples-to-be should be
aware of?

Ahmad Dajani: Before
couples get married, it’s so important that as a first step they sit down and
have a real and completely honest conversation about their goals and dreams for
their new life together.

That conversation
needs to be about both the type of wedding and honeymoon they want, but it also
needs to move beyond the date of the wedding into what both partners are hoping
for in the first five years of their marriage.

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There are
a lot of important steps of your married life that can happen within that time
frame, like whether you are going to buy your home or rent, whether you’ll
start a family and if you want to travel.

GN: Explain
the importance of figuring out your partner’s financial style.

AD: While it
is not the most romantic conversation when you are planning a wedding, it’s
important to learn your future spouse’s financial style. Everyone is different
when it comes to finances, while one partner might be cautious, the other may
want to take on more risk.  One may be a
disciplined saver, while the other may feel more comfortable with debt.

It’s
important for a couple about to start a marriage to have had a real talk about
the money aspect of their lives and come up with a plan. By knowing what your
goals are and keeping track of the costs, you’ll be in a much better position
to plan for expenses  – both for the
wedding itself and for your new married life.

GN: What is
a smart saving plan for couples planning a wedding?

AD: Once you
know how much time you have to save, and how much you plan to spend, then it’s
a matter of prioritizing. A financial advisor can help with any type of budget,
not just large sums. Often you’re paying for things over the course of time
leading up to the wedding. Being able to set goals along the way and meet them
can remove much of the potential stress and give you every opportunity to enjoy
the big day.

GN: Why is
the first five years so important?

AD: Not
everyone needs five years for every goal. We found though, when we spoke to
Canadians, that thinking about the future in five year chunks makes most
long-term goals (like saving for a down payment on a house, children’s
education, or retirement) seem more achievable. When things feel achievable,
it’s more likely that we’ll commit to the plan. That’s human nature.

However,
saving for a shorter-term goal, like a wedding, furniture for a new home, or a
trip can often be tackled in less than five years. It’s important though, to
consider the importance of planning whether the goal is short or long-term.

GN: What
about wedding guests? Accommodations, parties, showers, gifts –   being a guest to a wedding can get quite
expensive. What are some financial tips for guests?

AD: It’s a
useful exercise to review your budget when you know that you’re going to have
additional expenses coming up. Often, with a little planning, small changes in
your day-to-day life can help create a little breathing room for the extra
expenses. Of course, when the excitement of the wedding is over, these
additional funds could easily be converted into savings for some personal goals
of your own – maybe there’s a trip on your horizon too!

It is
also great to always be planning for life’s expenses as they can come up
unexpectedly, like when you end up as a frequent wedding guest over a summer.
We recommend thinking about setting up pre-authorized contribution to your
savings or investment account (also called a PAC), so that savings remains an
ongoing part of your life.  When you are
saving automatically, it helps you build up a fund that helps you enjoy being a
wedding guest without worrying about the financial aspect.

Editor’s note: This interview has been edited and
condensed