At this very moment we are smack dab in the middle of “wedding season.” What that really means for brides and grooms is we are in the midst of the most expensive time of year to throw a wedding. For guests it means we are in the throws of the most expensive time of year to give a gift.
According to new data from WeddingWire, the average cost of a wedding now runs at $28,000, compared to roughly $16,000 a decade ago, accounting for an 81% increase in cost. Moreover, the cost rises to $37,000 when you factor in all components, such as honeymoon and engagement ring.
“Couples are spending more to personalize each and every element of their wedding,” Kristen Maxwell Cooper, executive editor of The Knot, told Forbes. “They want it to be unique and a true representation of them as a couple.”
What's interesting, Cooper noted, is that people are inviting fewer guests to their big day, but are spending more per person on the experience. “Couples also want their wedding to be an experience for guests that's fun and entertaining,” she said.
As the WeddingWire data showed, couples now invite an average of 124 guests to their wedding, spending about $240 per guest. Those guests each give an average of $160, according to CNBC. So, if all 124 guests each gave $160 the couple will only make back $19,840. But luckily for big spenders, cash gifting is more popular than ever before.
“Cash gifting is continuing to increase in popularity," Cooper said. In fact, she explained that the Knot just launched a new tool specifically for couples to ask for cash gifts called The Knot Newlywed Fund, which allows couples to register for anything and everything, be it funds toward a down payment on a home, a wine tour in Tuscany or dinner at their favorite local restaurant.
Cooper added that she personally believes cash gifting has become increasingly popular for two reasons. The first reason is that more couples are living together before they're married, so they already have most of the items that are often included on a traditional registry. The second reason, Cooper said, is simply because “millennials value experiences over things. They'd rather forgo the luxury blender for the zip lining trip on their honeymoon. But of course, we always encourage couples to do both--there will be guests that would prefer to give you a tangible gift, so you want to make sure they have the option to do so.”
In general, Cooper said guests should only give what they are comfortable giving, but that The Knot recommends spending $75-$100 on gifts for distant relatives and coworkers, $100 to $125 for relatives and friends weddings and $100-$200 or more if the wedding is for a close relative or close friend.
And couples from the get-go need to be realistic about how much money they will make back from their wedding guests, Cooper said. Instead of expecting guests to cover their own costs, start by simply setting a budget that you are both comfortable with and don’t think twice about what you may get in return. After all, “technically, guests are not obligated to give a gift," Cooper said. "It's really a token of goodwill and to show support for the newlyweds.”
