Planning for Life Events

Whether it is the birth of a baby, a coming-of-age ceremony, a wedding, or a funeral, with planning, you can have an event you will remember for its positive qualities rather than its financial stressors.

How can you avoid the financial stress of paying for “a big day”? First, reflect on your life and your values.  What is most important to you?  What life experiences do you not want to live without having?  Thinking about this ahead of time will start to bring into focus the life events you will need to plan for.

Then think about the timing – when might this event (or events) take place:  Next year?  In five years?  In fifteen years?  With time comes the opportunity to plan and save for these life events.

You can also take time to think about ways to reduce the overall cost of life events.  For example, if you are having a baby, consider getting good quality used items from friends, family members, or second-hand shops. This will be much more affordable than buying these items new. Ensure you have proper health insurance coverage, too.  If you do not have insurance, see if you qualify for public health insurance. This can keep you from having medical debt related to prenatal care, the birth of the baby, and care for the baby and you after the birth.  You may also qualify for WIC that can help pay for baby supplies including formula.

Saving money for and planning to cut the costs of life events, can keep you from adding debt to your life and then paying for the big day for many years to come.

Average Costs of Common Life Events

While there may be big differences in costs based on your geographical location and your preferences, here are some the average costs of common life events in the U.S.:

• Wedding—$32,641
• Divorce—$15,000 to $20,000
• Birth of a baby with insurance—$3,400
• Funeral—$6,600