A controversial wedding gift is becoming increasingly popular with young couples and a topic of discussion for wedding guests.
Many young couples are choosing to forego traditional wedding gifts for cash funds, hoping to use the money to purchase a home.
Online wedding resource The Knot and Zillow Home Loans found that 55 percent more couples are adding a “home fund” to their wedding registry than in 2018.
A 2024 survey by online wedding expert Zola found that nearly 87 percent of couples planned to add a cash fund to their registry, and more than 37 percent intended to put the money toward a new home.
The Knot and Zillow Home Loans found that 55 percent more couples are adding a ‘home fund’ to their wedding registry than in 2018.
One commenter wrote: ‘I think, however, that most wedding gifts these days are monetary. However, it seems crazy to ask for money for specific items.
As interest rates fall and many current homeowners are reluctant to move, a “rate lock-in” effect has made finding a way into the housing market increasingly difficult for first-time buyers.
Young couples see their wedding registries as a new avenue to purchase a home and use the money for down payments.
Amanda Pendleton, a personal finance expert at Zillow Home Loans, revealed that between 2018 and 2022, “first-time buyers were at least twice as likely to report putting gift funds toward their down payment.”
According to Pendleton, in 2023 43 percent reported gift funds from friends and family as a source of at least some of their down payment funds.
Asking for money is often considered taboo and inappropriate etiquette. Many traditional gift givers like the idea of giving something physical or for the intended purpose.
The Knot suggests that anyone considering a “cash fund” in their registry use a brief description of what the funds would be used for, as this makes guests more inclined to support in a specific way.
Zola’s vice president of brand strategy and marketing, Allison Cullman, told the New York Times: “I think people are more inclined to give a gift to something specific where they can see the result than when it feels like an abyss.”
However, the idea of giving money away is a controversial topic and not everyone agrees that it is acceptable.
One commenter wrote online: “My first thought, certainly as a 60-something, was ‘you’ve got to be kidding me.’ However, I think most wedding gifts these days are monetary. However, It seems crazy to ask for money for specific items.’
They suggested removing the labels and placing the “unspecified monetary gifts on a desired item without putting a label on it, for example, new house?”, however, they also noted saving money from “outrageous” wedding costs.
One commenter said: ‘One thing I like about this is that it prevents more unnecessary consumerism – buying products we don’t really need.’ It is practical and generates little waste…’
Allison Cullman: ‘The idea of giving a wedding gift is to invest in and celebrate someone’s future together as a couple and I don’t think there is a more profound way to do that than to contribute to the new home you would share together’
‘Once again, the right to have rights rears its head here. Of course, celebrate! But do it after thinking about your future and how you should allocate your money to achieve your financial goals,” they wrote.
One of them pointed out the cost of attending weddings in addition to purchasing a gift, including engagement gifts, bridal shower gifts, clothing, travel costs and possible hotel costs.
They said, ‘Buy your own house with your own money. Weddings shouldn’t be a fundraiser.’
Another said: ‘How about we skip the whole process and just write you a check?’ Is this where we are headed?
However, others saw the feasibility of the idea. One said: ‘One thing I like about this is that it prevents more unnecessary consumerism – buying products we don’t really need.’ It is practical and generates little waste…’
Many of the supportive comments reflected the economic effects of registering overload or purchasing unwanted or unnecessary items, as well as taking into account the difficulties of purchasing a home in the current climate.
One commenter wrote: ‘The spirit of the wedding registry is to help the couple make a home. A real estate fund makes a lot of sense today.’
Another said: ‘We had already lived together for years so we didn’t need candlesticks or cutlery or other “traditional” gifts. We needed money.’
Cullman told The New York Times: “The idea of giving a wedding gift is to invest in and celebrate someone’s future together as a couple, and I don’t think there’s a more profound way to do that than to contribute to the new home they would have.” share together.’