Advice on CH7 Sunrise: Put your Wedding on your Credit Card!

[josko]

Hi all:

Let me set the scene and context: (Not verbatum but pretty darn close.)

On Sunrise this morning there was a young lady (maybe mid 20's) who had recently been married and a Wedding Co-ordinator. The topic was about the Wedding Industry booming and the average wedding costing about 55k these days.

When asked what wedding tips this young girl could give to other young people on how to save money while planning a wedding, one of her answers was:

"Put everything you can on your credit card to get as many reward points as you can, so you can use your frquent flyer points on a free trip for your honeymoon."

There was complete silence from Mel and guest host.

I was gob-smacked and I think they were too. No-one was obviously expecting that one!

It just goes to show how some young people have their heads in a cloud with no financial education what so ever.

She also commented on how her parents wanted her to have the best of everything and cost just did not matter.

Koshi's fill in- I am terrible with names- said to her:

"Did you think about maybe saving some of your money and putting it towards the purchase of a home?"

To which she replied,

"Oh no, cost was no issue, my parents just wanted me to have the best of everything and we just wanted to make the wedding as perfect as possible for our friends and family."

Are parents out there still throwing money away on extravagant weddings?


Regards JO

 

[Rob Williams]

I know a young couple with a new baby, living in a rental unit who are getting married late this year or early next year.
When asked if they planned to buy a home while the FHOG was so attractive, they said, "No, the wedding is costing us $15,000 and there is no way we can afford our own home".
It's not just parents being extravagant, it seems.
I can't work out the logic, myself. Maybe I've got it all wrong. What would I know.

 

[LynnH]

"Oh no, cost was no issue, my parents just wanted me to have the best of everything and we just wanted to make the wedding as perfect as possible for our friends and family."

I know of someone who did a similar thing - and the marriage lasted just over a year!

Still, what hope did the poor girl have with parents like that??? I know several parents who indulge their 'little darlings', but that is just plain ridiculous!

Cheers
Lynn

 

[mja]

Couple defy credit crunch with expensive weddings

The following article is probably relevant.

$50k on a wedding?!?

http://www.news.com.au/couriermail/story/0,23739,25071986-23272,00.html

AUSTRALIAN couples are continuing to defy the tough economic times, spending as much as $50,000 on lavish nuptials, according to a new report.

The economic downturn hasn't dampened the bridal spirit with the average cost of tying the knot $49,202, an increase of 25 per cent in the past three years, a Bride to Be report says.

The magazine's Cost of Love report, investigating the financial repercussions of romance, found couples are turning away from the traditional, splashing out to make their big day more personal.

"There's no recession in bridal town,'' Bride to Be acting editor Jacqui Mooney said.

Tell us: What would you spend on your wedding?

"It's about quality not quantity with couples lavishing more money on fewer guests.''

Couples are spending an average $10,476 on their receptions, inviting 97 guests at $108 per head, the magazine's online poll of 1007 couples found.

Less than a third choose to tie the knot in a church, with more than half opting for outdoor civil ceremonies "in a setting that's significant to them as a couple''.

Couples are older now at the age of first marriage, they're more sophisticated and well travelled so they're really taking control of their day,'' Ms Mooney said.

"They see it as a significant life experience and they want to invest heavily so that they can have the day that reflects their personal taste.''

There's a growing trend toward destination weddings with more than a third of couples marrying interstate and almost one in 10 (nine per cent) making their vows overseas.

The average spend on the all-important white dress is up from $1900 in 2006 to $2220.

However, 36 per cent of women are paying between $2000 and $4000 for their gown, while 12 per cent splurge in excess of $4000.

Ms Mooney said the groom's style had become just as important in recent times.

"It's about what the boys are wearing as well as the girls,'' she said.

"One in five grooms are even having skin and hair treatments in the lead-up to the big day.''

While couples are spending three times more on wedding decorations, Ms Mooney says they haven't lost sight of what's important.

"When we asked brides what was most important to them on the day, half of the ladies said it was all about committing to her partner and celebrating their love in front of their closest family and friends,'' she said.

More than 116,000 couples tied the knot in Australia in 2006.

 

[auror]

Wow... I would've loved to see the look on Kochie's face! Shame he wasn't there to hear it.

We got married shortly before buying our PPOR and tried to keep it to a reasonable budget (< $10k). Sure, that's $10k that we could've put towards our PPOR mortgage, but like that Mastercard ad.... wedding = $10k... memories = priceless

Balance is the key thing here, I guess.

 

[stumunro]

I am getting married in April / May 2010, and including the wedding and honeymoon the budget is 12-15k.

This includes a half decent wedding location, invitations, cars, suits, dresses, full sit down dinner, alcohol, photos and a holiday to tahiti for 2 weeks.

I don't see this as overly extreme...

P.S I think we have buckleys of making it within budget but the bride to be is optimistic.

 

[Player]

I know of someone who did a similar thing - and the marriage lasted just over a year!

Still, what hope did the poor girl have with parents like that??? I know several parents who indulge their 'little darlings', but that is just plain ridiculous!

Cheers
Lynn

So true Lynn.

Some people put more time into planning their wedding (one day) than they do planning the marriage....... and the rest of their lives.

The parents are priming their little darlings to become ongoing recipients of economic out patient care. This is a term coined by Stanley and Danko in their fabulous book..."The Millionaire Next Door."

Economic Outpatient Care refers to substantial economic gifts and "acts of kindness" that parents bestow upon their children and even their grand children.

I guess that whilst this is well intended, the outcome will be the ongoing over the top expectation(s) of these darlings. This keeps them in a comfort zone where no responsibility is taken for the true reality of their future financial path.

Jim Rohn terms it best....."casualness (in any aspect of life), leads to casualties. Quite befitting of the term Economic Outpatient Care and the casualty department of a fiscal hospital.

 

[BoatBoy]

Didnt you know that spending a pile on a good pissup for your mates guarantees a marriages success

And if it's the best one and outdoes everyone elses, well, it'll work forever.

Deposit on a house you say, Pfft, who need a house when you can have a dress you'll never wear again and a hangover.

Dave

 

[Aaron Sice]

Didnt you know that spending a pile on a good pissup for your mates guarantees a marriages success

And if it's the best one and outdoes everyone elses, well, it'll work forever.

Deposit on a house you say, Pfft, who need a house when you can have a dress you'll never wear again and a hangover.

Dave

my point exactly

our wedding was $6.5k - still the talk of the town to this very day - which gives me a big head but i don't care.

i'll be suggesting my kids go elope and get married in fiji or wherever - keep the cost low, invest the rest.

 

[weg]

I wonder if the average wedding of 55K is because parents often put in the money and whether these couples would actually pay this amount if they didn't have them contribute.

I've been to a couple Italian weddings of 700 and 550 people and they were very showy and boring. I did not even know the bride and groom existed before I recieved the invite of one and my husband was only an aquaintance of the groom and had not yet met the bride .

With the second the brides father borrowed the money and then the bride and groom had to give the money they recieved as gifts back to the FIL to repay the debt.

I've already had comments from my older son about expensive and silly purchases made by people especially parents buying over the top impressive crap for their children who'll then brag and show off theirs purchases. Son thinks it's tacky and stupid and has already worked out that it hasn't necessarily got to do with having more wealth. Yeh .

My children will more than likely get some help from me towards a deposit on a house but they won't get much towards a wedding. I have boys and support the old fashioned view that the wedding is the girls dream and expense .

 

[Rob Williams]

I have boys and support the old fashioned view that the wedding is the girls dream and expense .

In the case of my ex fiance, it was HER dream and MY expense.

 

[weg]

In the case of my ex fiance, it was HER dream and MY expense.

Did you leave her at the alter when you heard alarm bells instead of wedding bells or did you mean ex wife .

 

[Perp]

While couples are spending three times more on wedding decorations, Ms Mooney says they haven't lost sight of what's important.

"When we asked brides what was most important to them on the day, half of the ladies said it was all about committing to her partner and celebrating their love in front of their closest family and friends,'' she said.

Said without a hint of irony?

 

[Rob Williams]

Did you leave her at the alter when you heard alarm bells instead of wedding bells or did you mean ex wife .

Actually she left me at the alter. Took the ring AND the dress, despite agreement to keep one and return the other to me.
The only good part of the whole deal was that it didn't go ahead.
The next one (so far, no takers) gets a $500 Bevilles gift voucher to buy her own ring and she can sort the dress out herself.
If it's love and it's meant to last, then all that other nonsense really doesn't matter.

 

[weg]

Actually she left me at the alter. Took the ring AND the dress, despite agreement to keep one and return the other to me.
The only good part of the whole deal was that it didn't go ahead.
The next one (so far, no takers) gets a $500 Bevilles gift voucher to buy her own ring and she can sort the dress out herself.
If it's love and it's meant to last, then all that other nonsense really doesn't matter.

It sounds like now that you're a little older and wiser you're unlikely to get as far as planning to marry someone like your ex again. Maybe the next one will suggest the $500 limit herself .

I think wedding planning in 'some' cases can be very revealing of a persons attitute towards money... a make it or break it factor in many marriage.

 

[Rob Williams]

It sounds like now that you're a little older and wiser you're unlikely to get as far as planning to marry someone like your ex again. Maybe the next one will suggest the $500 limit herself .

I think wedding planning in 'some' cases can be very revealing of a persons attitute towards money... a make it or break it factor in many marriage.

Only a year or so older but SO much wiser.
I agree with your other comments, too. A lot of younger people could benefit greatly from those sentiments.

 

[wylie]

The last few weddings we have been to have been paid for by the couple themselves. The last one was a couple, him 29 years old and she a little younger, so they were not exactly just out of home. I have three boys, so not sure what the etiquette is now. Of course, it used to be the bride's parents paid for most things, and the groom's parents paid for the drinks. That was how it was 22 years ago when I got hitched anyway, at least that seemed to be the "norm".

I would not want to pay for any silly extravagances and would rather give them a gift of money towards a house, as long as it went to a house, and not on some shoes and handbags. Maybe a house "gift voucher".

To be honest, if any of my sons was engaged to somebody who WANTED the whole silly, extravagant, keeping up with the Jones's type wedding, I would be very afraid for what would be in store. Spare me the "Princesses" .

 

[Rob Williams]

Spare me the "Princesses" .

That's hillarious!! How did you know her nickname was "Little Princess"?

 

[Ms Jade]

The economic downturn hasn't dampened the bridal spirit with the average cost of tying the knot $49,202, an increase of 25 per cent in the past three years, a Bride to Be report says.

This is hard to believe. I'm sure I heard 10 years ago that the average was $20,000. That's some inflation! And imagine what the top end ones are costing. I wonder what sociologists would say about the concept of Marriage becoming about Weddings. A big part of our early talks about getting married was about what changes it would make to the rest of our lives - e.g. Not having children, having joint finances & how that would work, where we aspired to go & do... It's unfair of me to assume that young people aren't having these conversations. Yet i can't help thinking that the importance of the "fairytale wedding" underscores an inclination to dwell on the fairytale rather than the realities of sharing a life together.

BTW, i am not one to talk as i did have the wedding that i wanted too - except that it involved eloping overseas rather than spending $ on gigantic cakes & dresses.

 

[Minxdamanx]

My son and his partner are having a civil ceremony followed by a barbecue.

They could afford whatever they wanted so I'm assuming this is exactly what they want!

Good on them. They are not financially responsible in all areas - but are learning.