Can't Pay?, Won't Pay?, Bride And Groom Must Pay

Lots of reasons are touted today why fewer and fewer couples are getting married - a lack of spiritual faith, a divorce culture, serial monogamy and a lowering of moral fibre throughout the western world! Increasingly another reason is being cited - the EXPENSE.

At £13,723* a throw on average, many of us can think of better ways to spend the money. But shouldn't the father of the bride be responsible for paying for the great day? Research conducted on behalf of the Association of Investment Trust Companies ("AITC") by MORI Research shows that this is another well-known tradition that seems to be falling by the wayside.

WHO PAYS?

In the last five years, nearly two thirds (61%) of all couples paid for their own wedding, compared to only 40% of those who married over 20 years ago. The financial side of getting married no longer seems to be a family affair.

Over 20 years ago nearly half (49%) of all brides had their wedding days paid for by their parents. Today only a lucky 31% of brides get the same help.

This change in tradition hasn't meant that the groom's parents are any more likely to contribute - research shows that only 9% of the groom's parents pay for the big day!

The message is clear: couples getting married these days are more likely to have to foot the bill themselves. If you had invested £50 per month in the average investment trust over five years you would have £4,351. This would be a good start towards financing your wedding. If you invested £50 per month over 10 years in the average investment trust you could have £12,640.

WEDDING GIFTS - MONEY VS PRESENTS

Recognising the financial pressures modern day couples are under, family and friends are more like to give money, although that does not rule out the traditional toast rack, letter opener or other present clichè. Of couples that got married over 20 years ago, 70% received just traditional presents. Of couples that married less than five years ago, that figure is 39%. However if you live in Scotland you are nearly 1.5 times more like to get money than couples from England and Wales.

WHAT DO THE NEWLY WEDS DO WITH THE MONEY?

92% of couples who received money spent it on things for the house, the wedding itself or the honeymoon. This compares to only 5% of couples who decided to invest any money.

For those who were given a traditional wedding present, nearly a third wished they had received money instead.

Two thirds of people who saved their wedding present money stuck it into their bank or building society. However, if couples had invested the money in an investment trust ISA their returns would have been better.+ See the table below for a comparison of 1631,000 invested in a building society and investment trust ISA over 5, 10 and 15 years.

Annabel Brodie-Smith, Public Relations Manager at the AITC, commented:

"The research has highlighted yet another financial hurdle. Parents are less likely than ever to foot the cripplingly expensive wedding bill. For those who are dreaming of a white wedding now is a good time to find out about investment trusts."

"Investing in an investment trust is easy and cost effective. For as little as £25 a month or a lump sum of £250, anyone can save a tidy sum for their special day. A major celebration is affordable to everyone, with a little bit of forward planning."

The AITC has written the "its for Income or Capital Growth" factsheet available free on 020 7431 5222.

Note

• The research was completed by MORI Financial Services. The fieldwork was conducted among 975 adults between 15th and 20th June.
• * Figure obtained from You & Your Wedding 1999 reader survey.
• All figures quoted for investment trusts are share price mid-market to the end of June 2000 source AITC.
• + ISAs were not introduced until April 1999. These figures indicate what you would have received if you had been able to invest in ISA at this time.
• The Association of Investment Trust Companies was founded in 1932 to represent the interests of the investment trust industry - the oldest form of collective investment. Today, the AITC is the primary source for information and statistics on investment trusts. The AITC has 301 members and the industry has total assets of approximately £80 billion.