Have you heard about the change happening across the U.S.? Learn more at JoinChristianCommunity.com. That's JoinChristianCommunity.com. Membership eligibility required. Each account is insured up to $250,000.
This institution is not federally insured. Unless you're planning a wedding, you probably had no idea that we're entering the busiest season of the year for saying I do. Hi, I'm Rob West. It's true. Traditionally, June was considered the height of the wedding season.
But that's no longer the case. How does that affect the cost of a wedding, and how can you save money on yours? I'll talk about that today with Crystal Payne, and then it's on to your calls at 800-525-7000.
That's 800-525-7000. This is faith and finance, biblical wisdom for your financial decisions. Well, our guest today is family financial expert Crystal Payne. She's a sister in Christ and the creator of the amazing website MoneySavingMom.com. Crystal, it's great to have you back with us.
Thank you so much for having me again. We're delighted. Hey, why don't we start there around MoneySavingMom.com? I know it's been a few years since you've been with us, so take us back briefly to 2006 when you started MoneySavingMom.com.
Tell us the background. My husband and I have been married for 20 years, and he started law school soon after we got married. We wanted to stay out of debt, so we set this audacious goal. We were going to go through law school debt-free. We started learning a lot of ways to maximize the mileage of our money. In the process, I got pregnant, wanted to be a stay-at-home mom, found this thing called blogging. From there, I just started talking about saving money, and people were just eating it up. Eventually, then started MoneySavingMom.com as a place to just really help people to be intentional with their finances. Well, and now more than ever, folks really are grateful for that assistance you're providing.
I suspect you've seen a lot of changes since 2006 in the cyber world and how blogs function and how people relate to you. But the value that you're providing hasn't changed, that's for sure. Well, as you know, today we're going to tap into some of your expertise around a specific topic, and that is weddings. So what's the first thing someone planning a wedding should do to save money? The biggest thing is you need a budget. You can't just go and be like, well, we want to have a great wedding. Start with, okay, how much money can you realistically devote to paying for this wedding? And really thinking about what are your priorities when it comes to that budget, and I highly recommend that you do not go into debt.
It is not worth it. You can simplify. You can have a great marriage even with a very simple wedding. And so creating a budget by category and then deciding, okay, what are the categories that we want to prioritize and put a little bit more money in? And where are the areas that it's just not that important to us? For instance, when we got married, I didn't care that much about having great photos, but I wanted to have really nice flowers. And so kind of deciding that ahead of time really helped us to be wise then as to where we are going to prioritize our money. Yeah, no doubt.
And so having that budget, but also that conversation about what's important is really key. Any big trends that are changing, Crystal, with regard to weddings? I mean, you know, are we seeing more weddings that are a little smaller in scale and the big weddings, 30, 40, 50,000, are a thing of the past? Or are we still seeing these gigantic weddings? I think one of the things that I really see, especially when it comes to online, because so much is now kind of for Instagram, it seems like it's this whole experience. And so they might have a smaller amount of people coming to the weddings, but I feel like they're spending just as much or even more. Because it's not just this one night or one afternoon, but a lot of times it'll be this week-long experience. Yes, and that obviously can add up. And again, really important to define what it is that you're trying to solve for with the wedding.
What's most important to you? Well, when we come back from our break here, Crystal, I want to talk about what we're seeing in terms of the wedding season. Because as we said in the introduction, the wedding season, which had previously been in June as the height of the season, is now shifting to the fall. And so perhaps that's affecting the cost of weddings. I know you're going to weigh in on that and tell us how we should think about that. Are there any areas we can skimp on?
I know you're going to give us some input into that. And you're going to help us just think about some of the practical areas that we need to consider so that we can deliver this wedding on budget. Because as you said, setting that budget at the forefront and really sticking to it is absolutely key to being able to have the wedding of your dreams, but without ending up with a lot of debt on the back end. Crystal Payne with us today from MoneySavingMom.com.
We're talking about saving money on your wedding. Much more practical advice coming just around the corner. And then your questions at 800-525-7000. Again, that's 800-525-7000. I'm Rob West and this is Faith and Finance.
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This institution is not federally insured. Thanks for joining us today on Faith and Finance. I'm Rob West. With me today, family financial expert Crystal Payne of MoneySavingMom.com. Today we're talking about saving money on your wedding as we enter the fall, which is a very busy wedding season. And Crystal, as we said, according to theknot.com, about 43% of weddings take place between September and November. So how does that affect the cost of a wedding?
Well, so many venues, so many different people like photographers and the cake decorators and all the different people that do things, wedding services. They're going to usually charge more because they can. They can charge a premium during those months. So if possible, one great way to save is by not having your wedding when it is the ideal wedding season.
And think about something like December through February. You're going to save a lot if you go in the off season. It's going to also be easier to find people to take pictures, you know, to be able to find that venue because they're not going to be so booked up. And you're probably going to spend a lot less because they're not going to be charging a premium.
Yes, no doubt about that. Well, as we begin to dive into some of the specific areas, obviously the wedding gown is a big one. There's a whole cable reality show now on just picking out a wedding gown and the price tags are breathtaking.
So how can we save money in this area? Well, you could do what I did. And that was I wore my mom's wedding gown, actually. So cost me nothing so you can get creative like that. But there are a lot of places online that actually have great deals. And so if you know that you are going to be getting married sometime in the next year, paying attention, for instance, David's Bridal, they do sales a few times a year and have great prices. I mean, we're talking like $99 for wedding dresses.
And so planning ahead can really save you a lot of money there. Also, you could borrow one from a friend. I mean, you only wear your wedding gown once if that's something that you're like, I don't really care that much. I just want to have a great gown, borrow one. Or really just looking around and seeing if there are places that sell overstocks. There are some different stores that will sell wedding dresses that didn't necessarily sell in the nice stores. And so you can oftentimes find some great deals that way. And so I think getting a little creative and not just going to the bridal gown store and thinking outside the box are ways that you're going to save a lot of money there.
Yeah. Now I know consignment and thrifting has become a big trend these days, one that you cover extensively at Money Saving Mom. I'm assuming there's not a wedding gown section in those stores yet, though.
Is that right? Well, they do have some. I mean, it's things that could count as a wedding gown. I know.
I know that usually they're going to be ones that are going to be fairly dated, though. I'm just saying. Okay. All right. Good advice.
All right. Well, quickly behind the gown would be, of course, the cake. They have shows about those too. So how can you save on a wedding cake but still have something that you're excited about? Well, first off, I would look into, is there anyone you know who actually can decorate cakes well?
Because a lot of times you might have someone in your circle of friends who is a great cake decorator and they could do. It might not be the most elaborate cake ever, but it would be a great cake and it would save you a lot of money. The other thing is, do you need to have a wedding cake that's this huge cake that's going to serve everyone? Or could you go with a smaller cake? This is what we did for our wedding. We had a small wedding cake and then we just did sheet cakes for the normal everyone who was going to eat the wedding cake.
The other thing I would say is, do you want to have cake? I know lots of weddings now that are thinking outside the box and doing things like donuts or brownies or ice cream. So if a wedding cake is not something that you're dead set on, know that you can get creative and do something else. And sometimes people like it a lot more.
Yes. Well, I know grooms will often go off the reservation a bit with regard to not having cake. I was at a wedding recently where there was the wedding cake. But the groom, instead of having a groom cake, he wanted those donuts you were talking about. And so that was kind of fun. I think people got into that.
All right. What about the wedding venue itself? How do we keep that cost down? Well, obviously, starting with if you go to church, could you hold the wedding in your church? Maybe it's not going to be this beautiful outdoor venue, but it's probably going to be a lot less expensive. And I think there's a lot of meaning there to get married in your church. Just thinking of what the purpose of a wedding is and that it's really this special ceremony before God. And so I think starting with that, you could also look around if your church isn't large enough or you're not able to hold your wedding there. Are there other churches in the area that they might be able to host your wedding or look for something like a county run facility that has a historic site or some maybe a little bit more outside the box that it doesn't say wedding ceremonies? Because I have found that anytime something says wedding, whether it's wedding photographer, wedding venue, whatever, if it has wedding before it, I feel like they just jack the price up. Yeah, I think you're exactly right. So getting a little creative as you select perhaps something off the beaten path may pay off.
All right. Obviously, when it comes to planning a wedding, there are all kinds of vendors. So any general rules for choosing vendors from musicians to caterers to photographers and the like? I would first say don't just hire the first one you meet with. I found that it's very helpful if you get three quotes, just like you would do if you were going to have some work done on your house, you probably wouldn't just have one person come in. So get a few different quotes. You might find that there's a huge difference in price or you might just find that you really like the style of this particular vendor or that you like their personality or you just feel like it's going to be a better fit for what you're looking for. And so meet with at least a few different ones. Make sure that they are reputable, that you have some references. And, you know, really, sometimes it's easy.
We just want to go for whatever is the cheapest. But I think it's important that you make sure that you're also getting quality and someone who's actually going to show up and do what they say they're going to do. Yeah, that's really critical. You only get one chance at that. So they need to make sure they're going to be there. All right, last question. And I think it's one that everyone getting married grapples with and that is, is it cost effective to hire a wedding planner?
What do you think? For me personally, for our wedding, I feel like it was the best investment that we made for an entire wedding just because it took so much off of my plate to be able to have this woman who was just she knew what she was doing. She'd done a lot of weddings and she was able to just keep everyone in line and it just made the day go so much smoother. The other thing is some wedding planners now they can also negotiate prices. And so if you hand off, you know, planning for different vendors, they can they can go out and they can do a lot of that work for you. And they work within your budget as well, which is why it's so important that you have a budget. And so it just depends. There's some different levels of what they will do, but it might be worth it for the time that they're going to save you the stress that they're going to save you and maybe also they're going to end up saving you money.
Yeah. What advice do you have for parents Crystal on communicating with their let's say daughter around the budget that they're allowing for the wedding well in advance so there's not unmet expectations there? I think, you know, it starts with building that trust relationship with our kids.
So it's this foundational thing of them understanding we love you, we care about you, but also we have priorities and we want you to think of the future. And so yes, it's great to have a beautiful wedding. But if you are going to spend $50,000 to have this beautiful wedding and then you're going to be in debt or it's going to cause a lot of financial hardship for years and years to come, that's not really worth it. And so really having those conversations about the why behind how you spend your money and being intentional with your money and what priorities are. I think it's going to really make a big difference in the long run for your relationship and hopefully you'll get to have a great wedding on a smaller budget.
I love it. That's such great advice. Well, we're out of time today, but thanks for all that great information Crystal on saving on weddings. You're welcome.
Thanks so much for having me. That's family financial expert Crystal Payne at MoneySavingMom.com. That's MoneySavingMom.com.
We'll be right back. For more information on how Christian Credit Counselors can help visit ChristianCreditCounselors.org. That's ChristianCreditCounselors.org or call 800-557-1985. We're grateful for support from Eventide Investments on the Faith and Finance Program. Eventide's approach to values-based investing is grounded in the belief that humankind was created in the image of God with intrinsic dignity, value and worth. Eventide calls this investing that makes the world rejoice. More information is available at EventideInvestments.com. That's EventideInvestments.com. Welcome back to Faith and Finance.
I'm Rob West. We're tackling your financial questions, but here's our promise to you to be hopeful and encouraging and always look at your questions through the lens of biblical wisdom, pulling the principles and passages we see in God's word related to money and applying them to the practical decisions you're making today. There's a lot in God's word. 2,600 verses on money and possessions.
Why is that? Is it because God needs our money? No, it's all his. He wants our hearts and money has a way of being a competitor to lordship. He has the rightful place of first position in our lives. The question is, are we allowing money and the things that money can buy to compete with God for first position? We want to handle money in such a way that it demonstrates that God is our true treasure and not the things of this world. As we maintain an eternal perspective, as we give generously, hold God's money loosely, save and live appropriately, we do that together as we encourage one another and certainly as we look to the Council of Scripture. Let's head back to the phones and tackle more of your financial questions today.
We'll go to Chicago next. Hi, Lisa. Go ahead. Hi, good afternoon, Rob.
Thank you for taking my call. I hope that this is a simple answer for you. I understand the annual gift tax exclusion. So I want to help my son buy his first home. He's going to put down a sizable amount, but I want to match that and even go beyond. If I give him, let's say, $87,000 to put down, then the $17,000 is that freebie that you get, but that other $70,000, does that force me to file a form with the IRS? Is it going to be taxed? I just don't understand how the over and above and how the lifetime exclusion works.
Yeah, it is simple, but it's a great question because it can be confusing. So you can basically give your son any amount of money you wish as a gift. If you give more than $17,000 in one tax year, or if you're married and you and your husband together give more than $34,000, because you could each give $17,000, then you would have to fill out that federal gift tax form. It's Form 709. But you still wouldn't have to pay any taxes if you give more than that, unless you exceed your lifetime gift tax exclusion, which is sitting right now at almost $13 million.
So you got a little ways to go before you get anywhere close to that. Now, the underwriters who will look over your son's mortgage application will require you to write what is commonly called a gift letter. And basically, that's a written statement confirming that the funds given to a borrower for a down payment are a gift, not a loan that has to be repaid, because they want to know that this isn't something that he's going to have to try to pay back in addition to their mortgage payment. And so it would explain who's gifting the money, where the funds are coming from, and the relationship between the donor and the recipient. But they're going to want to know that it is in fact a gift. And as long as it is, that won't be a problem. But to your original question, no problem going over 17, you'll just have to report it to the IRS, and it's still not taxable. And then when I report it to the IRS form 709, do I have to file form 709 every year because now their eyes are on it, and they're starting to tally this up?
No, only when you go over that 17,000 in any one year would you need to report it so they can keep the tally. Okay, perfect. That was a simple answer.
That's kind of what I found in my research, but thank you for confirming. I really appreciate it. I'm delighted to, Lisa. Thanks for calling today. We appreciate it.
And I'm sure your son will be delighted about the gift that you're thinking about making. We're going to stay right here in Chicago. Hey, Monica, go ahead. Hi, thank you for taking my call. My question is, what is your take on running to own due to credit not being so great? Yeah, so you know, they can be good or bad.
I know that's not helpful. So let me explain. You know, in effect, you're paying more than the typical monthly rent for a house and then that extra is put in escrow theoretically to be a future down payment for purchasing the house. Now, there's two kinds of these agreements. There's basically what's called a lease option, which you pay an option fee to the homeowner so that you can buy the home at the end of your lease term and it will spell out what portion of your lease option or rent payment will go toward the purchase price. And then there's the lease purchase. And this is very similar to a lease option. You're still putting a certain percentage of your rent payments toward a down payment to buy the home. The difference is you've got an agreement in place between you and the seller to purchase it ahead of time. And you would establish the purchase price, you'd agree on that before you sign the lease agreement and you'd specify a date for a home appraisal and decide on a price after the appraisal is completed, typically. But you have an obligation to buy the home at the end of the lease.
So, you know, what are the downsides? Well, you've got to pay that premium rent rate instead of a market rate, because it includes the rent credit toward your ultimate purchase. You may have some non-refundable fees like an option fee. If you ultimately don't qualify for that mortgage or nullify the contract by missing a rent payment, you also could lose the money you spent on the option and potentially the rent credit as well. And the home could lose value over the lease period.
I mean, typically that doesn't happen, but it certainly is possible. So why would you do it? Well, you know, the benefit is it allows you to kind of lock in a home that you know you want to own so nobody else can purchase it. And it can provide you with a path to home ownership if you can't qualify for a mortgage today, but you have reason to believe you could down the road.
It could also help you try out the neighborhood before you make a purchase and it can ultimately cut down on the cost and hassle of moving multiple times by you getting into this property and then just staying there as it rolls in to the purchase. But that's a lot of information I threw at you there. So give me your thoughts. Yeah. I mean, it is a little bit scary going into that with all those different options. Yeah. Do you know whether it would be a lease option or a lease purchase?
It would be Chicago. No, but is it an option or a purchase agreement? Meaning, are you paying for the ability to buy it if you want to or are you doing a lease purchase agreement where you're committed to buying it? I haven't even done any of the options yet. I was looking into what the options are, but I think I'm just going to work on the credit and then go from there.
I like that option, Monica. I think despite the fact that rents are high and I know it's frustrating, you'd probably like to get in your home. I think that typically that's the best way to go unless, again, you have reason to believe your credit is going to improve in a timely basis. You know, you find the home that's the perfect home and you just feel like you want to try to lock it down now and you've got somebody who's willing to work with you on it. But typically it's better just to focus on getting your credit improved, which means on-time payer, pay down debt. So you lower your credit utilization, have a good credit mix, and then save, save, save.
So you can have that good 20% down payment when you're ready to make that purchase. I think that's going to be a better option for you, even though I realize it's going to take a little longer. I hope that's helpful for you. We appreciate your call today very much. Well, we're almost out of time. If you liked today's program, why not share it with a friend? And while you're at it, share the Faith Buy app with them as well. Help us get the word out. Thanks for listening and sharing, and I hope you'll come back and join us again next time for another edition of Faith & Finance. Faith & Finance is provided by Faith Buy and listeners like you.
