Before you throw your hands up in the air and decide weddings are naturally expensive and you'll just have to find a way to pay for the flowers, transportation, favours, cake and other incidentals, you might want to throw caution to the wind. According to a recent survey of millionaire investors, most would spend far less than the average person does on their wedding.
According to monthly research with Spectrem's Millionaire Corner, which surveys millionaire investors with a net worth of $1 milion to $5 million, more than one-third of millionaires believe it's reasonable to spend $10,000 or less on a wedding. Roughly half of millionaires would spend between $10,000 and $30,000.
According to the 2013 Read Wedding Study from The Knot, the average wedding - not including honeymoon - cost $28, 427 in 2012. So, what about other aspects of the wedding? Just how much would affluent investors spend on a wedding or shower gift? What factors influence their decisions? How do they feel about destination weddings? The answers might surprise you.
Less affluent investors, those with less than $100,000 in investable assets, would spend $100 or less on a wedding gift for a close friend or family member. High net worth millionaires, those with $5 million to $25 million in investable assets, would spend between $200 and $500 on a wedding gift for a close friend or family member. Investors of all levels of wealth would spend significantly less on a wedding gift for a casual friend or business associate.
Less affluent investors would typically spend $50 to $100 on a wedding shower gift for a close friend or family member, though 35 percent would spend $25 to $50 and 15 percent would spend less than $25. High net worth millionaires would spend approximately $50 to $100 on a wedding shower gift, through 23 percent would spend between $100 and $150 and 17 percent would spend $150 or more. Investors of all levels of wealth would spend less on a shower gift for more casual acquaintances and business associates.
Factors Influencing Spending
An investor's household budget is the most influential factor in gift giving, followed by the couple's gift registry and their financial situation. Less affluent investors are more influenced by their household budget, while high net worth millionaires are most influenced by the couple's registry. More than 25 percent of high net worth investors also fear looking cheap.
Investors feel the disadvantages of destination weddings outweigh the advantages. High net worth millionaires are most likely to express a negative opinion of destination weddings because the events can place a financial burden on people attending and can distract from the true meaning of marriage.
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