How much does it costs for a wedding? Let’s do the maths

How much does it cost for a wedding?

“A wedding is a party, not a performance. If at the end of the day, you are married to the one you love, then everything went perfectly.”

After going through thick and thin together with your significant other, both of you decided that the time is right and it’s time to hear the wedding bell. Whilst this could be exciting for most but could be daunting for some.

With increased cost of living in Singapore, it would be wise to plan your wedding ahead.

Let’s breakdown the costs

Engagement Ring

For the guys, you will need to set aside this budget for an engagement ring. Ask De Beers and you’ll be looking at setting away with 2 months of your salary. Let’s set the figure as $2,000 for now.

Pre-wedding photography

This is optional but for those who are interested, it costs around $2,000 per package.

Bridal Packages

This could range from anywhere from $2,500-$5,000 and it will usually include gown for the bride and suit for the groom, bridal cars and make-up services.

Photographer and Videographer

If you are looking at professional photographers/videographers, $3,000-4000 should be quite reasonable. Look around and see if you have any friends who are professional photographers and that should help you save a few grands.

Wedding Band

Wedding ring can go from $500 to $4,000. Again, let’s set it at $2,000.

Wedding Banquet

If you want a lavish weekend dinner at a five-stars hotel, be prepare to set away around $1,500/table. 30 tables would cost you $45,000. If everyone gives you a red packet at $100 each, you’ll be looking at recouping $30,000. That will then cost you $15,000.

Honeymoon

This is highly variable and it depends on the places you plan to go and how long the trip will be. For a one to two week trip to a neighbouring Asian country, you will be looking at around $5,000. If you are planing to go for a Europe trip, be expected to spend more than $10,000.

The table below sums it up which include other miscellaneous costs.

BRIDE GROOM TOTAL
Engagement ring $2,000 $2,000
Pre-Wedding Photography $1,000 $1,000 $2,000
Bridal Package $2,000 $2,000 $4,000
Photographer/Videographer $1,500 $1,500 $3,000
Wedding Band $2,000 $2,000 $4,000
Wedding Banquet $20,000 $20,000 $40,000
Honeymoon $5,000 $5,000 $10,000
Lunch Catering $1,000 $1,000
Emcee & Coordinator $88 $88 $176
Bridesmaid/Groomsmen Dress $200 $200 $400
Red packets for Bridesmaid/Groomsmen $500 $500 $1,000
Bridal Car $500 $500
Bouquet & Corsages $75 $75 $150
Gatecrash Red Packets $500 $500
Total $33,363 $35,363 $68,726

Don’t forget that you will be recouping some of your costs from the red packets you received from your guests. For a setting with 300 guests, and assume $100/red packet and equal share between the bride and groom, you will be getting back $15,000 each.

The figures above are estimated and feel free to adjust the figures according to your budget!

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Plan your children tertiary education early

Plan for your children tertiary education early

For many new parents, the cost of buying milk powder, toys and clothes seems to be the first thing that comes to the mind.

There is one thing that most parents has overlooked – children’s tertiary education.

Everyone has been through this stage of life and has obtained your Degree and Diploma. If your parents have funded your education, are you aware of how much it has costs? For those who funded your own education, i am sure you know it is no small amount.

Now that you are a parent yourself, wouldn’t you want to be able to fund for your children education needs and not deny him or her the opportunities to at least obtain that piece of paper in a highly competitive society of Singapore?

If you have not start to save for your children education, start now.

Time value of money will compound and grow and multiply this pot of money. You will be surprised that stashing away a small portion of your money every month can grow to something significant 20 years later.

The question is how much do we need to put away?

First, we need to find out how much it costs for a tertiary education now and how much it will cost 20 years later after adjusting for inflation.

Base on a 3-years business course, the estimated* figures are illustrated in SGD in the table below:

Country Tuition Fees Other Expenses Total
Singapore $27,750 $2,000 $29,750
Australia $108,276.60 $84,990 $193,267
UK $99,827.28 $126,036 $225,863
US $78,000 $112,320 $190,320

If we assume a 5% education inflation, the expenses in 20 years time worked out to be:

Country Total Expenses
Singapore $78,936
Australia $512,795
UK $599,282
US $504,976

The figure are startling but that should discourage you to start saving for your kids.

By saving i don’t mean stashing away in your bank’s saving account as the low interest environment is not going to let you achieve the numbers above.

If you’re financial savvy, do a ‘110 minus your age‘ stocks portfolio. If you are not, stick your money with STI ETF.

If we assume your investment performance to be in line with education inflation of 5%, you would need to set away approximately $15,000 a year to get around half a million 20 years later.

Therefore, it is important that parents should start to plan for you children tertiary education early.

(* The numbers are estimated and factors like exchange rate fluctuation, variable education inflation and choice of school may not reflect the figures above)

 

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