New York weddings on the rise again, but financial woes loom

The New York wedding market is creeping back up after an especially difficult pandemic year, but looming financial woes threaten to dampen the love.

It's no secret that wedding culture was all but canceled for most of 2020, with those who chose to tie the knot turning to small outdoor ceremonies, scaled-back nuptials, and elopements. The good news is that New York area couples are starting to tip their toes back in the traditional wedding waters, with an estimated 80,000 couples expected to wed this year versus 2020's 60,532 according to Wedding.report.

Wedding in ManhattanEddi Aguirre

But even as weddings grow in popularity and the stigma of attending larger weddings wanes, the ongoing financial crisis threatens to dampen the love of newlyweds everywhere. "One of the most common reasons for divorce is money," explains New York-based Certified Financial Planner Bobbi Rebell, a personal finance expert at Tally, a debt payment app. "Step one is to make sure your money values are aligned, ideally early in the relationship. The focus is not about having money or not having money because realistically financial circumstances are going to change and as we learned during the pandemic. Couples have to be aligned in how they will deal with the inevitable financial speed bumps and road blocks they are going to hit on their lifelong journey."

Keeping the stress off new marriages can be as simple as setting up a handful of key smart financial planning measures from the moment you marry -- and it doesn't matter if you're 20 or 60.

You both need life insurance

As sad as it sounds, life insurance is a non-negotiable aspect of wise planning. "Couples should have life insurance to protect each other, and any children or other dependents they may have," explains Rebell. "If the only purpose for the insurance is to provide a financial payout should someone pass, term life is probably the best bet. Put simply, whatever budget you have, term insurance will give you more coverage." 

There are other options though, she adds. "Other insurance products, like whole life, have investing components are are part of a bigger financial planning strategy. In most cases, newlyweds will have better options for investing than a complicated insurance policy."

It may be cheaper than you think, too, with some term life insurance quotes for $500,000 policies for healthy people in their twenties often costing under $30 a month.

Yes, you need a savings account

"Savings accounts have become a hot topic for good reason. While experts have always recommended three to six months of emergency fund savings, the reality is that many people found themselves without their expected income for much longer in the last year," Rebell says. "There’s a lot of talk that savings accounts should be more than six months of expenses, but I’m not sure that is realistic for most people. That said, don’t shortchange a good old fashioned high yield savings account. Many online-only banks offer the best returns, but make sure the one you choose is FDIC insured."

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While it may sound impossible with the New York State Labor Department releasing recent statistics showing an overall unemployment rate at about nine percent, it doesn't mean that scaling back every day life and socking away even a handful of dollars per month can't be achieved.

"As you move into married life, couples can sometimes feel like they don’t have money to do ‘fun’ things anymore because they have so many financial goals. But don’t forget to live your life now as well. Consider setting up a date night savings account and maybe a 'vacation fund’ savings account with specific targets so you see the money build and can make sure you remember to enjoy your life- guilt free!"

Make a smart choice about renting vs owning your home

Deciding whether to rent or own your home can be determined by a variety of factors, but with the New York City housing market being down dramatically and interest rates remaining low, there may present an opportunity to own a slice of the skyline that otherwise would've been impossible in the past. Other markets outside the city have actually increased in price dramatically, with some towns in Westchester County and Long Island reporting pricing increases of over 15 percent in the last year alone.

Condos in Midtown West, ManhattanEmily Xie

"The rent versus own issue is an eternal debate, but one of the most important discussions to have as a new couple," stresses Rebell. "The out of pocket costs are often similar at first, so a lot comes down to both financial resources, lifestyle expectations, and short, medium and long term goals. If you plan to live somewhere for at least five years, ownership can make sense if you have the down payment and other financial resources." Rebell adds that it's important to calculate closing costs, transfer taxes, and other expenses that may add up along the way if you do decide to buy.

"But remember to do the math and run the numbers before you dive in-- home ownership ties up capital, creates ongoing and sometimes unexpected expenses that can weigh you down, and may not pay off as a financial investment. On the flip side, ownership creates tax deductions and other benefits- not the least of which is that when you own something and can really make it your home."

With New York state wedding costs averaging nearly $30,000 for the last five years straight, careful financial planning is clearly one of the most important weapons the average couple has to fight the threat of divorce-- something a significant portion of the New York population will experience each year.

Are you planning to be married in the New York area this year? We'd love to hear your feedback in the comments section below.