“Destination” weddings and bachelor/bachelorette parties have become increasingly popular with MIllennials in the US. While skipping those pricey trips might hurt your friend’s feelings, it could also put as much as $14,000 back into your pocket — or roughly one third of the money needed for a down payment.
Nearly 70 percent of Millennials reportedly desire to become homeowners, but saving money for a down payment is the biggest obstacle, according to a report released earlier this week by the listing site Zillow. To find out how much money Millennials are “wasting” on destination weddings and related festivities, Zillow teamed up with the wedding planning site The Knot.
The average “destination” bachelor party costs the guys about $1,500, and about $1,100 for the ladies, says The Knot. So, in theory, if the average person attends just nine of these events in the course of their lifetime, they will have spent around 34 percent of the money needed to put down on a median priced home — currently priced at $200,400, according to Zillow.
The savings earned by just saying no to some of the festivities can vary greatly metro to metro. In New York City, the median price of a home is over $422,000, and skipping the pre-wedding shenanigans will only save about 16 percent of a down payment.
In San Jose, CA, where the median home is valued at over $1 million, skipping the bachelor parties will only save about 5 percent of the money needed for a down payment in the metro.
Still, Millennials in less pricey markets like Pittsburgh, PA could spend as much as 50 percent of the money needed for a down payment on pre-wedding parties.
It is also worth considering that bachelor and bachelorette parties are not the only costs that go along with attending a wedding: attire, gifts, travel and accommodations for the wedding day itself could add up to as much as $1,200 for those in the wedding party, and about $900 for those guests not part of the bridal party, says The Knot.
“Attending your friends’ bachelor or bachelorette parties can be a trip of a lifetime. While everyone’s budget and priorities are different, big ticket expenses like vacations can add up surprisingly quickly – a lot faster than a $19 avocado toast,” says Jeremy Wacksman, Zillow’s chief marketing officer.
Click here to read the entire report.