Whether from social or familial pressures, it’s very easy to go over budget (and into debt) when planning your wedding. From tips on how to best use your credit card to the number one financial mistake, Linda MacKay, Senior Vice President, Retail Savings and Investing, TD Canada Trust, has a lot of wisdom to share that will help lower the stress of planning your wedding.

What are the top three tips you give brides-to-be when it comes to planning their wedding? 

1) Set a realistic budget: Include all of the possible costs from the very beginning (e.g., engagement party) right through to the end (e.g., thank you cards). If your wedding is out of town, remember that booking travel and a hotel room as soon as possible can help keep those costs down, and make sure to check if the hotel offers volume discounts for your guests.

2) Establish a savings plan: Figure out how much time there is until your wedding and set up a regularly scheduled deposit to a Tax-Free Savings Account so you’ll be able to save to help cover all your expenses.

3) Shop around: You don’t have to buy the first dress, shoes or other accessories you find. Do your research online and in-store before making a final decision.

Is drafting a budget as simple as writing a list? Or is there more to consider?

Creating and managing your wedding budget doesn’t need to take a lot of time. Start by setting aside 30 minutes to round up your basic information such as your take-home pay amounts, necessary deposits and other anticipated costs for your wedding. Next, find a budgeting tool you like – there are many easy to use budgeting tools available online including one on tdcanadatrust.com – and plug in your information. Remember to revisit your budget throughout the planning process to make sure you’re on track.

Should a couple consider getting a line of credit to pay for parts of their wedding?

For many couples, a wedding is one of the first steps towards building their life together and it’s a good time to talk about finances in general. If you and/or your partner have outstanding debt, you may want to speak to an expert about how to consolidate this, perhaps by establishing a personal line of credit, so you can consider working together as a team to pay this debt off. In terms of managing wedding expenses, a personal line of credit may be an option worth considering to help fund some of the upfront costs; however, whenever possible, it’s best to budget and plan ahead to avoid going into debt. That way, you can use any financial gifts you receive towards building up your savings vs. paying down your line of credit after the wedding.

What are things to consider when using a credit card to pay for a lot at once?

Your credit card can be a handy tool to help pay for your wedding costs and to benefit fully from using any credit card, remember to pay the balance on time and in full. You may want to consider using a loyalty credit card so you can redeem reward points for as many expenses as possible. Depending on the type of credit card you have and where you shop, you may be able to use your reward points to cover the cost of gifts to your wedding party as well as any hotel and travel costs. Whatever money you’re able to save by using points can stay in your Tax-Free Savings Account to help cover the costs of future milestones for you and your spouse.

When it comes to planning a wedding, how can money be less stressful?

One easy way to reduce stress when planning a wedding is to plan ahead. Start by creating a realistic budget that includes all of the possible wedding related costs and then stick to it. Tracking your expenses and sticking to you budget will help keep the wedding planning process fun and memorable and minimize stress along the way.

What’s the number one mistake couples make, financially, when it comes to weddings?

A common financial mistake couples make is not sticking to their budget. It’s easy to get swept up in all the extras throughout the planning process, but establishing regular budget check-ins will help keep you on track and avoid going overboard. At the end of the day your guests will be focused on you and your spouse, not the extra details you spent hours fretting over.

How can you get the best bang for your buck when planning a special event, like a wedding?

Use a rewards credit card to pay for all of your wedding purchases and then redeem the loyalty rewards earned on those purchases to help pay for your honeymoon. Some credit cards also provide additional features and offerings – for example, under the TD Travel Rewards Program, cardholders can have access to benefits such as travel insurance and preferred car rental rates, and other advantages depending on which card works best for you. Remember, to benefit fully from using any credit card, pay the balance on time and in full.

Anything else you’d like to share with newly engaged couples?
For any newly engaged couple, it is important to have an open and honest conversation around your finances and how you plan to manage your money, for your wedding and beyond. It is quite common for one person to take the financial “driver’s seat” in the relationship but even if that’s true, the other partner needs to be an active passenger and not leave the desired financial destination to chance. Here are some key topics to get couples started in their financial wellness discussion before they tie the knot:

  • How much money does your partner make?
  • Does your partner have any debt? If yes, how much is it and what are their plans for paying it off?
  • How much savings, if any, does your partner have? What is it that they are saving for?
  • Does your partner have life insurance? If yes, how much?
  • Has your partner started thinking about or planning for retirement?
  • What are your partner’s overall views on debt versus saving?
  • What is your partner’s philosophy with regards to budgeting – to budget or not budget?

Once you discuss and understand how each of you feels about these important financial topics, sit down with your partner and create a budget. Look for an easy to use budgeting tool that can help you keep organized and stay on track. For example, at TD we have many tools and tips online that can help you determine and map out how much to save each month as you plan for your special day and your new life together. Remember, your wedding is meant to be a celebration for you and your spouse and the love you have for one another. As you plan for this special milestone, your budget should help create your special day in a way that lets you start your life together remembering the happy memories rather than the outstanding bills.