Written by Mark Salter

February is known for being the month dedicated to and all about love and romance. When we fall in love, marry and have children, the thought of them marrying one day in the future is often far away from our thoughts.

However, with the average cost of a wedding in the UK currently standing at close to £20,000 and adding honeymoon and hen/stag parties, anything up to £30,000, it is well worth planning towards this cost when your children are actually born.

Saving for your child’s wedding was a key financial goal once upon a time but today saving for their education often takes precedence almost universally. So, before you embark on this project understand whether this is something you would genuinely like to do or something you want your child to handle when they are an adult.

The best advice anyone can give is to plan! Start planning early, the earlier you begin planning the easier it will be, and you will have the magic of compound growth to help you.

Most of us don’t begin planning for our future when we’re in our teens, especially for our future children’s weddings, but people who plan are normally those people who achieve. You can start a DIY financial plan yourself or you can visit a professional financial planner who will develop a plan with you.

Set a budget for the wedding - First, figure out the type of wedding you are planning for your child. While societal and peer pressure can compel you to spend more, you need not keep up with the Joneses. Each one’s financial circumstances are different; arrive at a budget for a wedding based on your financial situation.

Start saving and investing early - Thankfully, you need not invest all. Instead, you invest for the long term and let the power of compounding work its wonders. By starting early, you also reach your child’s marriage goal faster. For example, saving £20,000 over 20 years with a 4% return would cost £54.80 per month but over a 5 year period it would be as much as £301.22 per month.

Get the asset allocation right - Create an investment portfolio that’s well diversified so as the famous saying goes ‘don’t keep all your eggs in one basket’. Another important tip is to make sure you keep your savings and investments in as many tax sheltered vehicles as possible and remember to use each parent’s annual tax allowances. For example, each parent can invest up to £20,000 in ISAs for the 2022/23 tax year. 

First, stick to the plan and target a specific financial goal without diverting retirement or other funds towards the wedding. A child’s higher education expenses typically come up 5-7 years before marriage. Ensure you have separate plans for both. Diverting retirement funds could compromise your financial status in the future or delay the achievements of your own personal goals.

February 2023