Smart Ways to Spend Wedding Money

Weddings are expensive affairs, with the average cost of a ceremony and reception amounting to well more than $20,000, and every soon-to-be newlywed couple hopes to receive some monetary wedding gifts to help defray the costs associated with celebrating their union. While it is never polite to request money as a gift, either through money trees and dances, invitation inserts, or other means, most couples will not be disappointed. Many wedding guests prefer to give money as a gift because they know it will be useful to the happy couple, and some happy couples may receive hundreds or thousands of dollars worth of monetary gifts.

Knowing how to spend that money wisely can help the couple plan a sound financial future free from excessive debt and worries over unexpected bills, mounting payments, and unpaid debts.

Pay Debts

The smartest thing to do with any monetary wedding gift, whether it is $10 or $1,000, is to pay down outstanding debts. Many credit cards charge interest rates of 10 percent or higher, and carrying a balance on these revolving forms of credit can lead to years of interest payments that far exceed the original cost of the purchase. Couples should first pay off whatever cards they can, choosing those with the highest interest rates to eliminate immediately.

If a couple is lucky enough not to have outstanding credit card debt, they should next focus their wedding money on any interest loans. Student loans, mortgages, and car payments all frequently carry substantial interest rates, and while they may be lower than the rates on credit cards, using monetary gifts to reduce or eliminate these debts is a sound move for any couple building their future together.

Save

While it may not be glamorous, one of the best ways couples can invest their wedding money is just to open a savings account. This can provide them a buffer against unexpected bills or emergencies, and even in a weak economy a good savings account will draw some interest to help keep the balance growing. Specialized accounts such as retirement IRAs or funds designated toward a future home down payment, starting a family, or children's college fund can also help couples ensure their financial future is free from worry.

Plan for the Future

When most couples recite their vows, they don't think much beyond the classic promises of "in sickness and in health" and "'till death do us part." But preparing for those promises can help couples feel financially secure no matter what may await in their married future. Wedding money can be used to purchase additional health or life insurance in case of medical needs, or a couple may want to prepare a will and other legal documents that will keep them on firm financial footing even if times get rough.

Finish Your Registry

If a couple has a stable financial plan in place and few debts to worry about, they may be able to use their wedding money for more immediate gifts, and one of the best places to start is the wedding registry they so painstakingly compiled for their guests. Very few newlyweds actually receive all the gifts from their wedding registry, and what they may not realize is that the stores where they registered will frequently offer discounts on items that have not been purchased after the wedding. This can be a very frugal way for couples to get the rest of the household items they need to begin their life together and take advantage of substantial savings in the process. Choose items carefully, however: you may have registered for that $300 cappuccino machine because you enjoy coffee, but it would be wiser to pick up some of the bath towels you wanted but no one bought.

Splurge on the Honeymoon

If a couple truly is financially set as they begin their life together, it can be very rewarding to spend some of their wedding money on extras for their honeymoon. Spa treatments, fine dining, world class entertainment, and couple's experiences are great things to add to a honeymoon to enjoy making those first memories together as husband and wife. Popular choices include:

*Couple's massages or spa treatments

*Exotic tours such as canopy excursions

*Upgrading flight plans to first class

*Learning something new, such as scuba diving

*Indulging in a room service breakfast in bed

*Reserving a limousine to and from the airport

*Private tours of cultural sites or museums

Many couples are fortunate to receive monetary gifts for their wedding, but how they spend that wedding money can determine how sound their financial future is together. One of the most common things that disrupts newlywed bliss is financial frustration, but careful planning and savvy spending can help any newlywed couple begin their happily ever after without monetary woes.