TD survey finds one third of Canadian Millennials go over budget when tying the knot
TORONTO, May 18, 2016 /CNW/ - While the months leading up to a wedding are an exciting time for couples, they can also take a toll on their finances and relationship. A recent TD survey found that one third (31 per cent) of Canadian Millennials spent more than they expected on their wedding receptions. On average, Millennials in general went over budget by 55 per cent. "Till debt do us part" also rings true, as one in five Millennials (21 per cent) say they went into debt for their weddings and more than four in 10 (43 per cent) say the financial aspect of their nuptials caused stress between them and their partner.
"Planning a wedding is often one of the first times couples budget together on a significant expense, which can add stress to an already stressful time," says Shirley Malloy, Associate Vice President, Every day Banking, TD Canada Trust. "To keep spending – and stress – in check, work together upfront to determine how much you're comfortable spending, then build a budget and track all wedding-related expenses against it to avoid a surprising total after your big day."
The TD survey found that Millennials that went over budget are splurging on food and beverage (52 per cent), venue and décor (31 per cent) and wedding attire (28 per cent). Malloy and wedding planner Rebecca Wise, offer the following tips to help Millennials save this wedding season:
I vow to set a budget: The first step is to set a realistic budget with your partner that includes all possible costs, including attire, photography, catering, venue, décor and more. TD offers online saving and budgeting tools that can help you plan out your expenses.
I vow to track my spending: Nearly one quarter (23 per cent) of Millennials don't know what they spent on their wedding reception. Tracking expenses on a regular basis is critical to staying on top of your spending. TD's new money management mobile app, TD MySpend, is an effortless way to help you see where your money goes.
I vow to shop around: Don't feel pressured to book the first venue or buy the first dress. Check out trunk shows and sample sales to find savings on attire, and consider renting a tuxedo or suit instead of buying new. Accessories like cufflinks or jewellery can also count as "something borrowed" while keeping costs down.
I vow to save where possible: Wise suggests saving on décor by alternating between elaborate and tall floral centrepieces and simple, low centrepieces. Not only does this give variety to your space, it's also cost effective. In addition to décor, couples often splurge on food and beverage. Wise suggests opting for a reduced bar during cocktail hour by serving only beer and wine or a passed signature cocktail.
I vow not to compare myself to others: While social media can be a great tool for wedding inspiration, it can also lead to unrealistic expectations and the temptation to overspend. Wise stresses that every couple is different and if you are going to splurge, do it on elements that really personalize your wedding, like a late night food station featuring your favourite dish or acoustic guitarist to play your favourite song while you walk down the aisle.
I vow to think ahead: While a wedding is a monumental occasion, the marriage that follows is full of big financial decisions. Commit to being open and honest with each other about finances, and 'unpack' any financial baggage together.
"There are many ways to cut costs while still making your wedding day special," says Wise. "Some of my tricks of the trade include renting a cake pedestal to increase the height of your cake without increasing the price, and selecting in-season flowers that don't need to be imported."
TD's Malloy adds, "Weddings are one of life's biggest milestones and can come with a big price tag, but through smart budgeting and savings strategies it's possible to celebrate the big day and start a new life together putting the right financial foot forward."
About TD Wedding Save vs. Splurge poll
TD Bank Group commissioned Environics Research Group to conduct a custom survey of 6,337 Canadians aged 18 and older. Responses were collected between February 25 and March 17, 2016. Canadians and a subgroup of 379 Millennials who have had a wedding reception are included in this report.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, plus credit protection and credit travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as at over 1,100 branches, with convenient hours to serve customers better. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.
SOURCE TD Canada Trust