Cash is king, but it’s not without its pitfalls. Here’s how to avoid common cash wedding gift mistakes.
It may be different in other parts of the country, but on Long Island, weddings mean cash gifts. Whether it’s in paper dollars or paper checks, many newlyweds leave their venues with full card boxes and soon-to-be fuller bank accounts.
Getting loads of cash is exciting, but there are a few errors that many couples can make when it comes to their congratulatory windfall. Before heading to the bank, know these common cash wedding gift mistakes and how to avoid them.
Image courtesy of Capture the Moment Studios
1. Not having a plan for the money
Depending on your guest list, you and your fiancé can expect to get a chunk of change for your wedding. Before you get to the big day, decide what you want to do with the money you receive. You may want to open a joint savings account and leave it there while you discuss things further. Or, you may decide you want to invest it and meet with a financial advisor. You might also want to put it towards buying a home or another major purchase. Whatever you choose, make a plan for the money before you get it. That way, you’ll be less likely to make the second cash wedding gift mistake on our list…
2. Splurging on impulse buys or everyday purchases
Your wedding gifts may amount to the largest amount of cash you’ve ever been given. We know you have a pair of Louboutins in sight, but resist the urge to splurge! Your best bet is to talk with your fiancé and funnel the money towards something for your future — like a home, a sound financial investment, or even as an extended honeymoon budget.
You’ll also want to avoid spending the money on things like groceries or gas. We know that money could fuel your car for years, but a smarter decision would be to invest the money or dedicate it to a once-in-a-lifetime experience.
3. Neglecting to note which guests gave cash gifts
Remember ripping open a birthday card and making a beeline for the cash inside? Yeah, we all fell into that trap when we were younger. But doing it with your cash wedding gifts could mean you easily forget who gave you what. And let’s be real — you’d like to write a really nice thank you note to the uncle that gave you $500. Keep a ledger as you open your cards, and make a note of which guests gave you cash and checks. That will make things so much easier when it’s time to write your thank you notes.
Image courtesy of Lana Rowe Photography
4. Waiting too long to cash checks
We know you’re going to be exhausted after the big day, and you’ll want to rest and recoup before getting back to the real world. It may be tempting to stuff checks in your purse to cash later, but remember — most checks are only good for 6 months after the date listed, and some are valid for only 90 days. Banks aren’t required to honor them after that point.
It’s also worth mentioning that unless your guests balance their accounts religiously, they may forget that they have a large outstanding check in your name. Waiting too long to cash their check could cause them to overdraft, or eat into money they need for mortgages, rent, or other expenses.
5. Using cash gifts to pay off wedding expenses
It’s so tempting to spring for a live painter or DJ uplighting that’s way out of your budget, with the thought that money you get for gifts will make up the difference. But here’s the thing — you never know just how much money you’ll be getting, and if it will be enough to cover expenses that brought you into the red.
Instead of spending theoretical gift money, set a strict wedding budget and throw a party that’s within your means. We promise you’ll have an incredible day — even if you have to skip the uplighting.