How to pay for a wedding

A wedding is a huge milestone where friends and family gather to celebrate the new life you and your partner plan to build together. However, these celebrations can be expensive. The average U.S. wedding costs upward of $34,000, and 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.

7 ways to pay for a wedding

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 also give you some negotiating power with vendors, as they may be willing to give you a discount in exchange for immediate payment.

2. Charge sparingly to credit cards

If your credit card offers rewards, you could take advantage of charging a few small expenses to reap those benefits. However, because credit cards have significantly higher interest rates than other financing options, charging indiscriminately may increase the overall cost of your wedding. Make sure you can pay off the balance later and that you factor interest into your budget before using this option.

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, you could use a home equity line of credit (HELOC) to finance a wedding. The interest rate is typically lower than other borrowing options and, 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 often more flexible as well.

5. Set up a vendor payment plan

Most wedding vendors will allow you to set up a monthly payment plan for large balances. Always ask if this is an option, but keep in mind that they may charge interest or a higher fee, which will increase your overall costs.

6. Get a loan

You can use an unsecured personal loan to pay for some or all your wedding expenses. 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 or reselling, can help you put extra money toward your wedding day. Be sure your earnings go directly into savings or paying vendors, so you're not tempted to spend it on other things.

Tips to save for a wedding

As you're wedding planning, it helps to find ways to reduce the costs and save while also stretching your money further. With careful planning, your wedding can be both wonderful and affordable.

Talk it out

Have open and honest communications with your fiancé and family. You may discover your family has already budgeted finances to help you pay for your wedding. Be sure to discuss the financial concerns you have and share what you want out of your big day.

Start saving early

The more you can pay with cash that you've already saved, 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 or can afford.

Create a detailed budget

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

Look for ways to reduce costs

You can reduce your wedding costs without making big sacrifices. You might make your own decorations, ask a friend to serve as officiant, choose an off-peak wedding date or select a nontraditional wedding venue. If you find little ways to save on each expense, the overall savings can be significant.

Reduce your monthly expenses

Finding ways to cut back on discretionary spending can help you divert money to your wedding savings. Bringing your lunch to work instead of eating out, canceling unused subscriptions or skipping a vacation can provide you with savings to put toward your wedding fund.

Open a dedicated savings account

Opening an account dedicated to a specific savings goal can help you save and resist the urge to use the money for other expenses. Setting up automatic deposits and direct deposits into the account will enable you to stash the money away before you have a chance to spend it. Accounts that work well include:

• Certificate of deposit (CD): With a CD, the money you deposit stays in the account for a set term, which can be a few months or several years, but it often earns a higher interest rate than a traditional savings account. Just remember that you generally can't withdraw the money before the end of the term without incurring fees.
• 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 as needed. Some money market accounts offer check-writing privileges, which makes it convenient to put a down payment on a wedding venue or pay a vendor in advance.

What is the 50/20/30 rule for weddings?

When used for weddings, the 50/30/20 rule for budgeting allocates 50% of your budget for necessities, 30% toward wants and 20% to savings.

For instance, you’d allocate 50% of your wedding budget to necessities, like the venue, catering and photographer. Then you can put 30% toward aesthetic costs like flowers and decor. You save the remaining 20% for taxes, fees, tips or any unexpected costs. Remember that this is just a recommendation, and you should allocate your funds in a way that makes sense for your financial situation.

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 begin 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 many families don’t follow them:

• 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 gifts for the bridesmaids.
• The groom: The bride's engagement ring, wedding band, tuxedo rental and gifts for the groomsmen.

You don’t have to follow tradition. You can decide who pays for what as you see fit, depending on your family relationships and financial situations.

Plan for your big day

Funding a wedding may seem daunting, but you have many ways to help you pay for the event. Whether you're paying for it yourself or splitting it with family, use a combination of options that ensures you stay within your budget. A dedicated savings account can help you get a head start.