In this article from Moneygeek, Hallie Kraus, financial planner at the Humphreys Group, provides her expert advice on budgeting and financing when it comes to wedding planning.
Some topics that Moneygeek covers in this article, to provide background and answer FAQs leading up to Hallie’s insight, include:
- Wedding dates and wedding loans
- Wedding loan interest rates
- Wedding loan eligibility
- Wedding loans’ affect on credit score
- Who is responsible for financing a wedding
Hallie Kraus weighs in with advice for couples to determine whether a wedding loan is right for them, and how to maximize it if they do get one. She starts by defining “good debt” vs. “bad debt” and highlighting the fact that taking out loans is most effective, and considered “good debt,” when “it is used to build wealth or increase your income over time. Hallie defines “bad debt” as taking out loans “to purchase depreciating assets or for consumption,” and mentions that car loans and credit cards usually fall under this category. According to Kraus, these types of loans tend to leave you in worse financial shape over time, particularly due to current interest rates.
Kraus gives this context to say that weddings are not an event to go into debt over and advises scaling down wedding plans if you are not in the financial condition to cover your plans without a loan. A plan of action that Hallie suggests is to then start a savings plan to have a larger wedding event at a later date. In the case of still considering taking out a wedding loan, Hallie presents a set of questions to discuss between partners and sets a precedent for healthy conversations about money that can lead to a happier partnership over time.
Hallie recommends a few uncommon ways to work towards financing a wedding which includes reaching out to your surrounding community for support. Asking to borrow venue locations owned by people who may be connections around you, having someone donate materials, or lend their skills for building and decorating are some of Hallie’s suggestions.
The Humphreys Group is a women-owned and women-operated wealth management firm based in San Francisco, California. The firm offers highly focused financial planning and disciplined asset management to a range of clients. Their expertise is helping women in transition navigate their particular challenges — such transitions as marriage, divorce, widowhood, inheritance, or that first stock option grant. Their passion is helping their clients take control of their own financial lives and get smart about money.