Help for Parents of the Bride/Groom to Get Out of DebtAug 29, 2017
Your adult children are getting married and are looking to you to cover a majority of the cost. Can you really afford to be so generous? Below are a few helpful tips about how to get out of debt and when it’s okay to say “no.”
Is the bank of Mom and Dad risking Mom and Dad’s finances?
CIBC reports that Canadian parents would rather fork over cash than have their adult kids and their spouses live with them. The poll found that 76 per cent of parents give monetary gifts averaging from $24,000 up to $40,000 depending on the parents’ combined income.
Generally, these gifts will cover the cost of buying a home or paying for a wedding. The question is: Are parents going into debt to finance these endeavours — or worse, are they cutting into their retirement?
Here are some ways to bridge the gap and openly talk to your kids about what you can and can’t afford.
Paying for a dream wedding should be a group effort.
- Schedule a lunch date to go over the wedding plans with the bride and groom. Explain that your resources are limited but you are happy to help with what you can.
- Go over your finances to see what you can afford to give and offer the bride and groom your help in paying for something specific, such as the photographer.
- If your finances are tight, graciously offer your time or help with wedding plans such as DIY centerpieces, cooking, decorating or general help during the big day.
- Offer to organize a “Stag and Doe” fundraiser to raise money for wedding expenses.
What kind of help is available for getting out of post-wedding debt?
If you’ve taken on a little too much debt while giving your daughter or son the wedding of their dreams, you have options:
- First review your budget (or make one if you don’t have one). Use this interactive budget calculator to get started.
- Trim expenses where you can so you can add more money to debt repayment and savings.
- Combine high-interest credit card debt into a consolidation loan so you can reduce interest payments and multiple payments.
- Find help through debt counselling by using a reputable credit counsellor or debt help professional.
- Use a debt repayment options calculator to see what option might work best for you.
- Meet with a financial adviser to make sure your retirement goals are on track.
Do you financially support your kids? Are you putting your own financial goals on the backburner to help pay for your child’s wedding? Join the conversation by searching the hashtags #DebtSolutions #Weddings