(PHOTO: Getty Creative)
SINGAPORE – Social traditions and peer pressure have made weddings in Singapore so great that it may wipe out the savings of young couples, forcing them to save from scratch after paying for the event.
This is part of a series where Yahoo Finance Singapore focuses on different aspects of Millennials and their finances. In this sixth part, we address young couples who are about to tie the knot, as well as financial experts who can talk more about the financial aspects of a wedding.
An expensive proposition
A legal marriage in Singapore actually costs only S $ 42 for Singaporeans and permanent residents and S $ 380 if both parties are foreigners.
However, the actual wedding celebrations can cost anywhere from S $ 30,000 to S $ 100,000. It depends on factors like the type of wedding, the degree of extravagance and the number of guests invited.
A wedding photo package alone costs around S $ 5,000 on average, while wedding rings can cost up to S $ 10,000. Some even have to pay for the location of their celebrations, such as churches or hotels. And if the couple wants to spend their honeymoon abroad, an additional estimated $ 5,000 will have to be provided.
“All of this doesn’t even include the cost of a new home for the couple, which is a huge investment in itself. That includes renovation costs and home appliance purchases, ”said Gregory Van, founding partner of Endowus, a Singapore-based fintech company.
While the COVID-19 pandemic has made weddings a much smaller proposition, the economy is slowly opening up again. Van encourages young couples to consider whether some of these expenses are necessary and to reduce them if possible.
“We don’t have a solid budget at the moment because we don’t yet know what the COVID-19 restrictions will look like, but ultimately we don’t want to spend too much. Although it’s a special, one-off day, it’s literally just for a day, ”said Natali Ghui, 27, who will get married in 2023.
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Ghui and her boyfriend, who have been together for four years, would rather save and spend their money on their home and their future together.
Banquets are expensive but important
While the ceremony itself seems financially manageable, the wedding banquets are what bleeds most couples to death.
A typical wedding lunch or dinner at a hotel can easily run into the five-figure range, depending on the number of guests you invite and the quality of the hotel. Most banquets average around S $ 150 per person. Couples have to pay more if they want photo booths and video services.
Despite the price, most young couples still get away with the banquets.
“There’s this expectation to take all of our extended relatives and friends to a banquet and have it in a reasonable restaurant or hotel that isn’t dodgy or seedy,” said Andralyn Low, 23, who is getting married in 2023.
Low and her boyfriend, who have been together since 2015, initially tried to talk their parents out of a banquet because of the price. However, they later realized the importance of sharing the special occasion with the people they grew up with.
“And at the end of the day it should be an honor and not a burden to have such a reunion for our relatives and friends and to feed them well,” said Low.
Tan Wen Hui, 24, also feels pressured to hold a wedding banquet just to please her parents when she wants to spend money on other things like a nice honeymoon instead.
“A wedding banquet is expected because my parents asked for a decent meal with other relatives. They see it as a time when everyone comes together, ”said Tan, who will get married in 2022.
Be realistic and be prepared
Ultimately, the rule of thumb is never to spend what you don’t have, said Srihari Sikhakollu, CEO of eRemit Singapore, an online money transfer service.
“Borrowing big to plan a big wedding just to impress others isn’t the smartest move. Couples need to be realistic about their financial situation and adjust their expectations and plans accordingly, ”said Sikhakollu.
Because different couples have different priorities, a wedding budget is vital as it helps you identify what to compromise or what to forego depending on your shared goals, said Eng Thiam Choon, CEO of Tiger Brokers Singapore.
“The last thing you want is to run into huge credit card bills after your wedding and spend months trying to catch up,” warned Eng.
Financial experts have also recommended that young couples use the three-pot concept after marriage, in which each party has its own personal account and a joint account as a couple. Couples should have the same financial responsibility and be actively involved.
Justin Kang, 25, who will get married in 2023, will take such an approach.
“We’ll be using our shared account for big expenses like buying a car or paying utility bills, while our personal accounts will be used for things like insurance and investment plans,” said Kang, who has been with his girlfriend for seven years.
“Of course, the bank statements of our private accounts are mutually available for inspection! Transparency is very important in a relationship, ”added Kang.
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