It used to be that when two people were married they were just starting out in life. Many traditions were created to help jump start their union with items that were needed in the home. However, over the years traditions have stayed virtually the same but relationships have changed. A couple about to be married can already have most of what they need for their home. It may not make sense to register for items like toaster ovens, china and bedding because it is already in hand. More often it may make more sense to get cash instead. Cash can be very versatile for newlyweds and in most cases go further than registering at the home goods store. If you prefer cash over gifts, here are a few ways to make it work for you.
When accepting a potentially significant wedding gift of cash, something to consider would be the Gift Tax limit of $15,000 per donor/per recipient. If your parents decide to give you $15,000 or less for a wedding gift in cash or assets, there is no need to deal with the IRS. Generally, if more than $15,000 is given from one individual, you may not owe tax, but a gift tax return will have to be filed, so the IRS has a running total of all gifts received from that one individual.
- Down Payment on a House
You and your spouse may be renting places and want to look for a new home. You may be able to pool all the cash together and make a significant dent in a downpayment on a new home purchase. - Remodeling
One of you may already have a home but need to upgrade a room, add an extra bathroom or just get some remodeling done for extra comfort. Getting cash for your wedding can go a long way to making those home improvement dreams a reality. - Help with Wedding itself
More and more couples are funding the wedding themselves and budgets can be stretched. Consider using cash received for your wedding to help alleviate some stress from your wedding bills - Purchase Larger Items
In some cases you and your spouse may already have every little household item you need. What you may not have is larger and costlier items. Sure you can register for them but often people will not combine their gift giving to get those items for you. Receiving cash can allow you to make those few larger purchases for your new home. - Pay off Debt
It may not sound glamorous but receiving cash may allow you to pay off debt that either of you bring to the union. Paying off debt can make for an easier and less stressful financial situation going forward.
Save for the Future
In some cases both the bride and groom bring everything to the table. When that happens, setting aside wedding money for future needs can benefit both you and your spouse. Depending on your situation, consider where to use that money to benefit you the most.