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Giving Your Daughter the Wedding of Her Dreams

Zoe Team and Carol Dixon, CFP® (Zoe Network Advisor)

Sep 8, 2022

5 min read

A financial advisor reviewing a plan with two clients at a table

Key Takeaways

Establish clear financial expectations with your child early on.
Set up a separate, earmarked investment account to fund the wedding.
Account for inflation and prioritize costs like food, venue, and music.

Frequently Asked Questions

How do I start planning for wedding costs?

Begin by setting a clear budget and discussing financial expectations with your child to ensure everyone is aligned on contributions.

Should I combine wedding savings with my personal funds?

It is best to treat wedding funds as an independent account, earmarked specifically for this event to track progress more effectively.

What happens if I have leftover funds after the wedding?

Since the investment account is in your name, you can redirect any surplus funds toward other goals, such as your own retirement.

How Businesses Can Prepare for a Recession

The time to plan for your child’s dream wedding might be closer than you think. Big bells churning, fancy table decorations, and the most wonderful attire must be on the list of items you need to factor into your budget.

Every significant milestone holds financial implications. As a parent, you think about what the future may bring for your child. We set budgets and plan for their back-to-school clothing and supplies, upcoming birthdays, Halloween costumes, and for their education. Then we plan for one of your child’s most monumental milestones, and likely the last one you will be 100% responsible for, before your child starts planning for their own children.

Here are a few tips on how to give them a magical day:

You Smile When the Dream Becomes a Reality

Does the thought of planning your child’s dream wedding make you smile, or does the financial stress make you cringe? Maybe you haven’t thought of it at all because you thought you’d avoided that obligation. Well, times have changed, and now everyone has to play their part – whatever that looks like for your family.

The first step in making plans to give your child the wedding of their dreams is establishing clear expectations. You need to understand what your child is hoping to receive from you, and your child needs to understand your commitment to them. Unfortunately, many parents become so overwhelmed when planning their contribution that they fail to connect with what their children may want or need. Sometimes, despite paying the bills, parents forget how to budget for such a large event. And while it can be hard to remember at that moment, this day is for them and should be focused around what they want in that day.

Prepare Your Wallet For Fancy Invitations and Exquisite Decorations

The next step is to start saving if you haven’t already. Remember that one dollar today will be worth a lot less in the future, especially with today’s increasing inflation levels. Determine how much you can contribute to this wedding, and consider helping your child set a budget.

Whether you plan to cover the entire event or plan to set a budget and leave it up to your very financially savvy child to pay for the rest, every wedding requires a decision on food, flowers, photos, entertainment, location, accommodations, decor, attire, the reception… to name a few! Let’s not forget that the price increases depending on the number of guests you invite. Since you do not know what your child will want and how extravagant or minimalist they’ll want it to be, come up with a baseline for each component of the wedding:

Food/drinks – We all know that food and beverages are among the most important parts of the wedding. Do you want your child to have top-shelf alcohol and an extensive food assortment? If so, come up with a reasonable dollar amount per person.

Entertainment (because we all know getting people on the dance floor is key for a successful wedding) – A live band will be the most expensive and the price can quickly increase, while a DJ may cost significantly less. Decide what you would want to cover yourself.

Allocate a portion to location – This may be simplest by deciding on a fixed amount, as the cost can fluctuate significantly based on the venue and whether food is included in the price per person.

Allocate the remaining portion to all other items. This bucket may be more than the first three items combined and depends on your child’s preferences.

Set It Up - A Wedding Investment Account

Once you have set your budget, start contributing money to an investment account and put that money to work. For compounding interest to be most effective, allocate a fixed amount to your account each month. Depending on the time frame, this account can grow significantly. It should also be noted that these funds should be separated and earmarked for this event and not comingled with your personal investment funds. While it can be within the same account, the amount you’ve budgeted for your child’s wedding should be treated independently for these savings to be implemented as planned. Setting up these accounts and organizing your investments does not have to be as stressful as it sounds. Consult a financial advisor who can guide you and share advice regarding your decisions.

From a Dream to a Reality

Once the wedding is on the horizon, have an open and honest conversation with your child about what they may expect and how much you plan to contribute. Don’t be surprised if your child asks for money outright for a financial venture, like a down payment on a house or a contribution to their honeymoon.

Also, remember that you may also have a surplus of funding. After you reach your funding goal for the wedding, if you don’t gift the amount to your child, you may be able to use the remainder of the funds for your retirement. Remember, this is an account in your name, and you can do whatever you want with it, so it’s a perfect savings vehicle on its own. Regardless of how you use the funds, remember that this is one of the most memorable days of their lives, and you may still have a small nest egg left over when all is said and done.

How Businesses Can Prepare for a Recession

Here are a few tips on how to give them a magical day:

You Smile When the Dream Becomes a Reality

Prepare Your Wallet For Fancy Invitations and Exquisite Decorations

Food/drinks – We all know that food and beverages are among the most important parts of the wedding. Do you want your child to have top-shelf alcohol and an extensive food assortment? If so, come up with a reasonable dollar amount per person.

Entertainment (because we all know getting people on the dance floor is key for a successful wedding) – A live band will be the most expensive and the price can quickly increase, while a DJ may cost significantly less. Decide what you would want to cover yourself.

Allocate a portion to location – This may be simplest by deciding on a fixed amount, as the cost can fluctuate significantly based on the venue and whether food is included in the price per person.

Allocate the remaining portion to all other items. This bucket may be more than the first three items combined and depends on your child’s preferences.

Set It Up - A Wedding Investment Account

From a Dream to a Reality

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