TORONTO, ONTARIO--(Marketwired - Jun 23, 2013) - According to the BMO Wedding Survey - the first report in a two-part series on the economics of weddings and marriage - the majority of soon-to-be newlyweds (67 per cent) are postponing the "big day" because of financial priorities, and the trend is on the rise.
One-third (31 per cent) of those married within the past five years said they postponed an engagement or wedding because of finances, while only 15 per cent of those married longer (more than five years) deferred their nuptials.
Furthermore, couples planning to marry in the next five years expect to spend an average of $14,281 on wedding expenses. However, it's not uncommon for a wedding to cost upwards of $20,000.
"When you factor in everything from the rings to the venue, dress and honeymoon, getting married can be a significant financial commitment," said Janet Peddigrew, Vice President, BMO Bank of Montreal. "An important first step for any couple thinking about getting married is to determine what kind of celebration is financially realistic. One way to do this is by sitting down with a financial advisor to create a plan that takes all aspects of the wedding into account."
Financial Challenges Tying Wedding Plans in Knots for Many
The survey, conducted by Pollara, ranked the main financial obstacles on the road to becoming newlyweds for couples getting married in the next five years. It revealed:
- Housing costs ranked as the top barrier (34 per cent)
- Employment status - meaning either unemployment or underemployment - ranked number two, with one-quarter citing it as a barrier (24 per cent)
- Another 23 per cent cited overall debt as a barrier
The survey also found that fewer couples are expecting help from family to cover wedding expenses:
- Soon-to-be newlyweds expect to cover, on average, half (53 per cent) of their wedding costs with money saved themselves
- Those married over five years ago depended more on family to cover costs than those planning to wed in the next five years (34 per cent versus 19 per cent)
- However, those planning to marry soon are slightly more likely to rely on cash gifts than couples married longer (10 per cent versus 6 per cent)
|Covering wedding expenses||Soon to |
|Savings by couple||53||%||59||%||54||%|
|Cash gifts from wedding guests||10||%||8||%||6||%|
|Loan or line of credit (LOC)||9||%||5||%||2||%|
Money Savvy Brides and Grooms
To manage rising wedding costs, soon-to-wed couples are employing a number of strategies to save money, including:
- Having a smaller wedding (65 per cent)
- Making their own decorations, centrepieces or invitations (59 per cent)
- Getting a friend to act as DJ or photographer (50 per cent)
- Holding the wedding on a less popular day or season (35 per cent)
- Having a destination wedding (19 per cent)
This summer, BMO is helping Canadians make the most of their spending by offering up to $200 in cash when you open a chequing and savings account, and the opportunity to earn 500 bonus AIR MILES reward miles for getting a no-fee BMO AIR MILES credit card.
The survey results cited in the BMO Wedding Survey are from online interviews with a random sample of 1,000 Canadians 18 years of age and over, conducted by Pollara between May 27 and 28, 2013. A probability sample of this size would yield results accurate to ± 3.1 per cent, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $555 billion as at April 30, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.