Anyone who has ever been to a wedding knows that it can be pretty expensive to celebrate a couple’s union. Whether you’re in a wedding party and have to spend money on a bachelorette bash, a wedding shower and more, or you’re simply a guest who has to purchase an outfit, a wedding gift and potential accommodations, weddings are no cheap feat. The same goes for baby showers and other celebratory milestones — according to CNBC, the cost of these events is weighing on the wallets of millennials and Gen Zers, who are reporting that expensive celebrations are getting in the way of personal goals.
A new survey from Prudential reports that 46 per cent of millennials and 48 per cent of Gen Z say spending on friends’ and family members’ weddings, baby showers or other events is impacting their ability to save up for personal goals (think: buying a home or saving for children).
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Emergency savings are being tapped into for celebrations
A whopping 39 per cent of millennials said they did not have emergency savings — but those who do, are tapping into those funds in order to attend weddings, baby showers and more. The survey found that 23 per cent have used that emergency money to pay for a gift or go to an event for a friend or family member’s milestone, according to CNBC.
To top it off, half of millennials said they regularly ran out of money, having to turn to family or credit cards to get by.
“I attended a handful of weddings this year — and the expenses for gifts and travel really added up,” said Brandon Goldstein, a financial planner at Prudential. “That’s why it’s imperative to assess and prioritize what’s critical, so you can stick within your budget and not lose sight of your long-term financial goals, too.”
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How can millennials and Gen Zers save money?
Budgeting is one way to help save funds, however, the survey found that 70 per cent of millennials and Gen Z do not keep a formal budget.
Goldstein advises planning ahead in order to avoid getting into debt for events, and compare all the costs against your budget.
“If you don’t have that in your savings right now, you’ve got to look at your variable [expenses] and say, ‘OK, I only travel once a year and I’m gonna have to cut that out this year and spend that money on this wedding instead,’” he told CNBC.