Luxury destination weddings can create lasting memories, but they also present unique planning challenges, especially when it comes to finances.
Destination weddings are no longer just for paparazzi-shy celebrities and are increasing in popularity with today’s couples. In 2024, nearly one-in-five couples opted to hold their nuptials at a distant locale, according to The Knot’s 2025 Real Weddings Study.
“Kids are getting married later, and they have their own ideas about how they want to do that,” says Angie O’Leary, head of Wealth Strategies and Solutions at RBC Wealth Management–U.S. “Many of them are choosing destination weddings.”
For parents who plan to pay for their child’s big day, it’s important to include that goal in your wealth planning, says Cyndy Ranzau, a wealth strategist at RBC Wealth Management–U.S.
“Weddings of any type can be costly, but destination weddings have the potential to be even more so,” she says. “Parents need a plan for how they’ll finance these events, so they don’t jeopardize their own retirement savings goals.”
According to The Knot, the average international destination wedding cost $41,000 in 2024, compared to $32,000 for a hometown wedding. Factors like location and season can impact cost, but a major reason for the larger price tag is that the logistics of a destination wedding are typically more complex than those of a local event.
For instance, a traditional marriage celebration might include a rehearsal dinner for the immediate family, followed by the ceremony and a reception held somewhere like a country club, Ranzau says. There are usually only a few events, and the whole thing starts and ends within a couple of days.
But for a destination wedding, people will likely want, or need, to stay at the distant location for a longer period because of the travel involved. That, in turn, could mean you need to provide more entertainment options for guests.
“You’re now possibly paying for four or five events,” Ranzau says. “And, when people are traveling a long way, they’ll expect to be included in most, if not all, of them.” That can mean paying for every guest to attend the rehearsal dinner, plus hosting a welcome cocktail party, the after-ceremony reception, and a brunch the next morning. Calculating the actual cost of a destination wedding requires pricing each event separately.
In addition to the costs of the actual wedding events, it’s also important to factor in the cost of travel—both financial and otherwise—when planning a destination wedding. For example, some guests may not be able to take time away from work. Or, they just may not be able to afford the travel or accommodations associated with the wedding.
“Your child will have to accept that some people won’t have the means to come to their destination wedding,” Ranzau says. “But if you have close relatives who you want to come, and they aren’t able to afford the trip, then do you feel responsible for getting them there?”
In other words, parents may end up paying for some guests to attend.
According to O’Leary, there are two places parents should never take money from to fund their child’s wedding—their home and assets intended to pay for retirement.
“A child’s wedding is a major expense that needs to be built into the parents’ overall wealth plan, just like paying for college,” O’Leary says. And even for high-net-worth individuals who can easily afford the costs, specific financing choices still need to be made.
Those with after-tax cash income may be able to cover the cost out of their current resources. However, sometimes available cash comes in larger chunks rather than a steady stream. For example, a profit share or bonus may be paid just once a year. “Maybe you would rather not liquidate assets today, but you know you have money coming in a few months,” says Fred Rose, head of Banking and Lending at RBC Wealth Management–U.S. “That’s where you may want to consider a securities-based loan, where you borrow against the value of your portfolio.”
A temporary loan of this type would give you access to cash immediately for wedding expenses and allow your long-term capital to remain invested without interruption. It’s a sort of have-your-wedding-cake-and-eat-it-too scenario that can be mapped out in your wealth plan ahead of time.
A destination wedding is sure to create lasting memories, but these events present special financial considerations, even for high-net-worth individuals. When it comes to paying for a child’s destination wedding, having a plan for these additional factors can help make sure the day goes off without a hitch.
This article was updated in May 2025.
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