Costs And Benefits Of A Wedding
Starting off into a happy life together is not only romantic – it can also pay off financially.
First the great love, then the expensive wedding and afterwards many duties. To all wedding skeptics: A wedding can be organized beautifully and at the same time inexpensively. And through the wedding the couple can also save a lot of money. We show how both works.
Marriage is back in fashion, also because marriage offers financial advantages. Since 2007, the number of marriages has been rising steadily: Meanwhile, more than 400,000 couples annually say yes to each other again. Of course, most marry primarily for love. But if you can also save money through marriage, this is a good additional argument for marriage.
The Basic Law protects marriage and family in a special way. Married couples and, to a large extent, registered life partners enjoy special legal privileges. This is evident, for example, in the annual income tax return or in the obligation of mutual maintenance. And even if one of the spouses dies, the other is protected: married couples have a legal right to inherit, while unmarried couples without a will or inheritance contract are left empty-handed.
From free choice of tax class to spousal splitting: as a married couple, the state grants you special privileges. For example, you can choose your tax class according to your income. Here it makes sense to calculate exactly. If your annual income – whether from self-employment or permanent employment – is approximately the same, tax class 4 makes sense. If one partner earns significantly more, he or she should choose tax class 3 – tax class 5 is then intended for the partner earning less. You also benefit from spouse splitting, especially if you have different incomes. In this case, both incomes are added together to calculate income tax and divided equally between the two partners.
10 reasons why marriage is worthwhile:
1. Splitting of spouses
Married couples and registered partnerships are treated equally in terms of income tax law. It is particularly worthwhile if one of the partners earns considerably more. This is because the total income of both partners is added together to determine the tax rate and then divided equally between the two – at least mathematically. From this half amount the income tax is calculated, which is then doubled again. This means that a lower tax rate must be paid than in the case of sole assessment. However, this advantage shrinks the closer the two salaries are to each other.
2. Choice of tax class
Unlike singles, married couples can choose their own tax class. If both couples earn about the same amount, tax class 4 is the best option for both. If one of the partners brings home about 60 percent or more of the total income, he should choose tax class 3 – the other partner would then automatically be assigned tax class 5.
3. Double the lump sum for savers
Investment income in the amount of the lump-sum savings amount is tax-free. For UK single taxpayers this is 801 GBP. Married couples profit from the doubling: Their saver lump sum is with 1.602 GBP – all the same whether one of the partners receives 1,500 GBP from shares and funds and the other one only 100 or whether both receive equally much money.
4. Free health insurance
If one spouse has no income or is doing a mini-job, he or she can legally co-insure with his or her partner – this also applies to the children of this marriage.
5. Household contents, liability & Co.
A wedding can be considered a premature reason for terminating current insurance contracts. Thus, married couples can reduce duplicate existing insurance policies to one – and save money.
6. Father by law
If a couple marries and then has a child, the husband is considered the father by law – even if he is not biologically a father. Non-married couples must first have paternity recognised in order to have father and mother treated equally and then apply for custody of the father. If they do not do this, the mother alone has custody.
7. Salary supplements for civil servants
The monthly income of civil servants can increase when they marry – and also when they have children. According to the rules on civil servants’ pay, a family allowance is added to their basic salary. Whether this is available depends on the federal state where the civil servant is employed.
Gift tax is levied when assets are transferred from one person to another without consideration. Married persons who give or bequeath something to each other have the highest possible tax-free allowance of 500,000 GBP. This means that inheritance and gift tax is only due if this amount is exceeded. The applicable tax rates are also lower than those for unmarried persons: Depending on the amount of the inheritance or gift, it is between 7 and 30 percent for married couples and 30 to 50 percent for couples without a marriage certificate.
9. Pension allowance
In the event of the death of a spouse, the surviving partner is entitled not only to the personal allowance of 500,000 GBP, but also to a pension allowance of 256,000 GBP. This ensures that a possible inheritance does not become a financial burden.
10. Survivor protection
If one of the spouses dies, the other may receive a widow’s or widower’s pension. Such a claim may exist if the deceased partner paid contributions to the statutory pension insurance scheme. The survivor’s pension depends on the duration and amount of the contributions made and is usually not too high. But at least there is a claim which is denied to unmarried couples.
But despite all the formal advantages, the very beginning of a marriage – i.e. the wedding celebration – is usually a major financial burden. And it often costs as much as a middle-class car. On the most beautiful day of your life, you just have to make a lot of money and not spill it.
This is how much a wedding costs
As portal24.uk found out in a survey, UKs spend on average about 12,000 GBP for the most beautiful day of their lives. Thereby 30 percent of the interviewees stayed under 10.000 GBP, 64 percent however their wedding was worth up to 20.000 GBP. The fact that the calculation varies is due to the enormous range of possibilities: Do you celebrate with your closest relatives in tens over coffee and cake? Do you also invite friends and rent accommodation for a whole weekend? Or do you get married on a grand scale with 150 people in a hip wedding location with bar staff and chef? You alone determine the financial framework of your wedding. So now you and your partner have to decide how you want to celebrate the wedding together.
From dance lessons to wedding planner – that’s what a wedding costs on average
- Stationery (invitation cards, menu cards, place cards etc.) – approx. 600 GBP
- Wedding car approx. 300-800 GBP
- Rings approx. 500-2.000
- dance course approx. 100-200 GBP
- for the bride about 1.000-5.000 GBP
- for the groom about 500-1.000 GBP
- civil marriage ceremony approx. 60 GBP
- free marriage ceremony approx. 500-1.000 GBP
- Documents approx. 100-150 GBP
- Champagne reception about 3 GBP per person
Location and catering:
- location 250-2.000 GBP
- Catering: 2.800-3.500 GBP
- wedding cake approx. 150-550 GBP
- Drinks, coffee and cake approx. 80 GBP per person
- Flower decoration ca. 800 GBP
- DJ about 600 GBP
- volume approx. 1.200 GBP
- photographer approx. 900-2.500 GBP
- one-week trip about 2.000 GBP
Advice and support:
- wedding planner approx. 1.000-1.500 GBP
How the dream wedding stays financially within budget
Your personal dream wedding need not be prohibitively expensive. Start planning in time! If you are pressed for time, you pay an express surcharge on everything – that doesn’t have to be. If you are also open to creative alternatives and take enough time for research and organisation, many things can often be implemented more economically. Start planning in good time!
Research prices early on. This will give you an idea of the market and strengthen your negotiating basis. In addition, you then have the full range of choices and don’t have to accept a second choice, which in the worst case can be expensive. The golden rule in wedding planning is: Organize the most cost-intensive things first. These include the wedding dress, the wedding location, the catering, the photographer or the videographer.
10 wedding savings tips
- Get married in the off-season Popular wedding dates drive up the cost of the wedding, because service providers often charge double on these days. On the other hand, in the low season, appointments are often still free and it becomes cheaper.
- Celebrate later in the day. The longer the wedding day, the bigger the bill. If you only start the wedding ceremony in the afternoon, the coffee and cake session can be omitted. A small wedding cake could then be served as a midnight snack.
- Design your own invitation cards. You no longer have to write by hand, because online printing houses now have unbeatably low prices. If you also ask for money gifts on the invitation cards, you will avoid unwanted gifts in kind.
- Organise a bachelor party. If you have to keep your wedding with an extravagant location and a chic buffet rather small for financial reasons, you can celebrate a large, relaxed hen party in advance. So you can celebrate your wedding with friends and acquaintances who are not invited to the actual wedding celebration.
- Serve appetizers at the champagne reception This will bridge the gap and save a full meal. Instead of hiring an expensive caterer, you can also ask guests to prepare a few appetizers. For example, if you are an active member of a sports club, you can ask other club members to serve the drinks.
- Choose favorable food variations. It does not always have to be the expensive fillet. Surprisingly, sometimes fish is cheaper than meat – it is worth asking. More vegetables will also lower the price.
- Use seasonal flowers. Whether bridal bouquet, decoration or car decoration – if you only use flowers of the season, you can save a lot of money. It becomes even cheaper if you design the flower decoration yourself.
- Limit alcoholic beverages. Beer, sparkling wine and wine – that is quite enough. If you like, you can still offer two cocktails: with and without alcohol. Also ask the service staff not to refill the glasses without being asked, so that half-full glasses are not left everywhere.
- Place your bets on Sales. Percentage campaigns should be in mind before your wedding. Here, for example, the date of purchase may be of help: Romantic decorations are often reduced after Valentine’s Day.
- Allow yourself to be sensibly presented with gifts. Whether wedding coverage, DJ or fire show – let the family or friends give you certain items on your wish list as a wedding gift.
Especially the wedding dress is an expensive investment. Many women dream of their perfect model already as girls – which makes the search all the more difficult. Those who are not open to alternatives here not only lose the overview, but also quickly dig too deep into their pockets. Ask for specific offers in a specialist shop. Meanwhile, many well-known clothing chains and online retailers also offer great wedding dresses at low prices. It’s worth browsing!
Bargains can also be made on second-hand portals. If the dress does not fit, you can have it altered. This is still cheaper than buying a new one. If that’s not for you, you can also have your wedding dress custom-made. Sounds expensive? Not necessarily. Some small start-ups specialise in this: you visit the shop, a designer takes your measurements, discusses your ideas and, in the best case, shows you examples – and after the first ten days you get a rough draft of your dress. Then the design is adapted so that in the end the wedding dress is exactly what you want.
How to get your dream dress at the price of your dreams
Second-hand tulle: Vintage shops are absolutely trendy. So why not get your wedding dress second hand? Usually the wedding dresses are completely intact – and if not, they can be brought back to life thanks to professional cleaning and alteration tailoring. The disadvantage: You have only a limited choice of sizes in second-hand shops.
Last (Wedding) Season: Outlets and Sales advertise brand new dresses at sometimes drastically reduced prices. So if it is not important to you to wear a current model, you can get real bargains here.
Autumn Shopping: As May is the peak season for weddings, many brides and grooms will be hunting for clothes in winter. Hurry ahead of them! In autumn, not only are the shops emptier, you can also find cheaper models.
Well rented is half bought: If you’re sure your potential bride’s dress won’t be a disaster, you can borrow one. The rental fee corresponds to the value of the dress – so a high-quality dress on loan can cost less than a cheap dress you bought. On the other hand, you can also afford real highlights as a wedding dress on loan.
First mine, now yours: Get a part of the purchase price back by selling your wedding dress. You can offer it online on your own or ask in second-hand shops whether you accept your dress on commission. Designer wedding dresses are especially popular. They usually find buyers quickly. However, the sale can drag on.
Installment credit and wedding – it fits!
Savings here, costs there: the romantic aspect of a wedding should still set the tone. The promise to take care of each other – even if the rose-colored glasses become clearer – is something that is not only legally obligatory. That is why you should celebrate this festivity in a way that is appropriate for this special day and for your love. You know best how this looks exactly.
And should the necessary small change for the dream wedding be missing in the end, we will be at your side as a fair and responsible partner. With an Credit company you can arrange your special day in the way that seems perfect for you. Complete your Credit company online with just a few clicks or get advice at a partner bank near you.