How to fund your wedding

A wedding is a huge milestone where friends and family gather to celebrate the new life that you and your partner plan to build together. It's important to reflect on that as you make your way through the wedding planning phase.

Weddings can be expensive, however. The cost of what you need — invitations, a venue, attire — can add up quickly. The average U.S. wedding costs upward of $33,000. For most people, that's a significant amount of money.

Here are some tips to guide you through planning to save and pay for your wedding effectively.

How to pay for a wedding: 7 options to consider

The best strategy for paying for your wedding will depend on your current savings and how lavish you want your celebration to be. You can also combine strategies to pay for part of your wedding upfront and finance the rest.

1. Use cash and savings

Paying for your wedding with cash on hand and from your savings can help you avoid accruing debt and interest. Offering to pay in cash may give you some negotiating power. Vendors may be willing to give you a discount in exchange for immediate payment.

2. Charge some things to credit cards

Credit cards can be used for some expenses where you can't cover the whole cost now but will be able to in the future. If your credit card offers rewards, it could be a good idea to take advantage of charging some expenses that you pay off quickly, before you incur interest. However, because credit cards have significantly higher interest rates than other financing options, it could increase the overall cost of your wedding if you aren't careful.

3. Ask family and friends for contributions

Asking family members and friends to contribute financially to your wedding instead of giving gifts can offer them a meaningful role in helping you celebrate. Some online wedding registries allow you to accept cash funds for specific purposes, like reception catering or entertainment. However, this strategy can strain relationships if anyone feels pressured to give or can't contribute.

4. Take out a HELOC

If you're a homeowner, a home equity line of credit (HELOC) can be used to finance your wedding with an interest rate that's typically lower than other borrowing options. With a HELOC, you borrow against the equity you have in your home. Unlike a traditional loan, you only withdraw money when you need to make purchases instead of borrowing a lump sum upfront. The repayment terms are flexible.

HELOCs do have potential drawbacks to consider. Your home is used as collateral, which means you could lose it if you're unable to repay the money you borrow. HELOCs also have closing costs that are typically 2%-5% of the total line of credit. These fees may make other financing options a better choice.

5. Refinance your student loans

If you're repaying a federal or private student loan, you may be able to refinance it to lock in a lower interest rate. The money you save can be used to help pay for wedding expenses. If you refinance, be sure to find out how much the fees and closing costs will be so that you come out ahead with this strategy.

6. Get a loan

A personal loan can be used to pay for some or all of your wedding expenses. With an unsecured loan, no collateral is required. If you qualify, loan approvals can be quick, which allows you to start shopping for your wedding right away. However, depending on the term and interest rate, the extra cost of borrowing may not be worth it.

7. Start a side hustle

Working on the side — such as tutoring, consulting, selling crafts or doing gigs — can help you put extra money toward your wedding day. This can take up a lot of your free time, however. If you currently work a full-time job, you may struggle to find the time to take on extra work while also preparing for your wedding.

Tips for paying for a wedding

When funding a wedding, it helps to find ways to reduce the costs while also stretching your money further. With careful planning, your wedding can be both wonderful and affordable.

Start saving early

The more you can pay with cash that you've already saved up, the less you will have to finance, which helps you save on interest. Paying with cash can also help you stick to your budget. With a credit card, the temptation to pay later could cause you to spend more than you planned.

Talk it out

Having open and honest communications with your fiancé and family about money is important for wedding planning. You may discover your family has already budgeted finances to help you pay for it — or not. Be sure to discuss the financial concerns you have with your loved ones and share what you want out of your big day.

Create a detailed budget

Set aside time as a couple to make a detailed wedding budget. Determine the total amount you both feel comfortable with spending, then allocate portions to different wedding expenses (e.g., food, entertainment, alcohol, decorations, videographer, invitations and stationery, etc.). Having a budget helps you stay organized and avoid overspending.

Look for ways to reduce costs

There are many ways you can reduce your wedding costs without making big sacrifices. You might make your own decorations, choose an off-peak wedding date or select a nontraditional wedding venue. If you find little ways to save on each of your expenses, the savings can add up to a significant amount.

Have some fast access to cash

A wedding can be a short- or long-term goal that may take a few months or years to plan for. But venues and vendors often require upfront payment or at least a partial deposit. You'll need quick access to some of your cash to make bookings and lock in rates.

Tips for saving up for a wedding

Saving as much as you can for your wedding can help you avoid debt and interest payments. There are several ways you can grow your wedding savings over time.

Open a certificate of deposit

Instead of keeping your wedding savings in a checking or savings account, consider putting it in a CD to earn a higher rate. With a CD, the money you deposit stays in the account for a specific period or term, which can be a few months or several years. If you know, for example, that you expect to be married in two years, you could open a CD that matches that timeline. A CD lets money that would normally sit in a low-interest account earn a better rate of return, which will give you more to spend on your wedding. One thing to watch out for is that you generally can't withdraw the money before the end of the term without incurring fees.

Open a money market account

A money market account is another savings option with a higher interest rate than a traditional savings account. Unlike a CD, it allows you to make withdrawals, typically up to six per month. Some money market accounts offer check-writing privileges, which makes it more convenient to make a down payment on a wedding venue or pay a florist in advance.

Automate your savings deposits

Most financial institutions have automated savings options. This allows you to automatically transfer a certain amount from your checking account to your savings account each month before you have a chance to spend it. You will need to make sure you have enough money in your bank account to complete the transfer; otherwise, you'll risk over-drafting and paying fees.

Sell unused items

If you have some things you don't use that are taking up space in your closet, basement or attic, consider selling them to help fund your wedding. You can list items for sale online, hold a garage or yard sale or sell them by word of mouth.

Reduce your monthly expenses

Finding ways to cut back on discretionary spending can help you divert money to your wedding savings. Perhaps you could bring your lunch to work instead of eating out, cancel unused subscriptions, skip a vacation or buy things used.

To help you identify what you can cut back on or eliminate, keep a journal of what you buy in a month. At the end of the month, go through the list to spot unnecessary purchases you can avoid in the future.

Who typically pays for what with a wedding?

A couple may not have to pay for the entire wedding themselves. Families often offer to cover certain expenses to help the newlyweds start on stronger financial footing as they start their new life together.

There are many traditions for who pays for what in a wedding. Here are some of the most common customs, though they aren't always strictly followed in modern times:

• The bride's family: Expenses associated with the wedding ceremony, such as the venue, wedding dress, decorations, cake and reception.
• The groom's family: The rehearsal dinner, marriage license, officiant fee, accommodations, transportation, a band or DJ, alcohol, the bride's bouquet and the honeymoon.
• The bride: The groom's wedding band and bridesmaid gifts.
• The groom: The bride's engagement ring, wedding band, tuxedo rental and gifts for the groomsmen.

The important thing to keep in mind is that you can make arrangements however you see fit depending on your family relationship and financial situations.

Planning for the big day

Funding a wedding may seem daunting at times, but there are several ways you can pay for the event. Whether you're paying for it yourself or splitting it with family, use a mix of borrowing and saving options that helps you stay within your budget.

Need a little assistance saving for the wedding? Citizens Savings Tracker™¹ can help you get financially ready for the big day.