Engagement Season Calls for Love, Creativity and Advanced Financial Planning

Influx of marriage proposals reminds Millennials of financial responsibility

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Dec 15, 2015, 09:00 ET

MILWAUKEE, Dec. 15, 2015 /PRNewswire/ -- Andy, a bright-eyed 26-year-old, daydreams of a perfect holiday celebration with his girlfriend. He envisions carefully placing a small, black velvet box under the tree on a cozy, snowy morning, holiday music and cinnamon-scented candles filling the apartment. He imagines getting down on one knee to ask his girlfriend to marry him. His vision of a beautiful, romantic proposal with the perfect engagement ring suddenly disappears when he checks his bank account. Regrettably for Andy, some of the biggest moments in life require advanced planning.

Thanksgiving to New Year's Eve marks engagement season, with 16 percent of all proposals taking place in the month of December.* While becoming engaged is an exciting life stage for young people, it also serves as a reminder that marriage calls for financial responsibility, especially when planning a big-ticket purchase like an engagement ring or planning for a wedding.

In a study release by The Knot in 2014, the average engagement ring costs $5,855. For a young person planning to pop the question, this expense requires financial preparation. But that's not all. According to the same study, the average wedding costs $31,213, with couples contributing an average of 43 percent to the overall wedding budget. Financial obligations stack up quickly during an engagement, which is why financial planning is a must.

"An engagement is a really exciting time in life that everyone deserves to have," said Emily Holbrook, director of the young personal market at Northwestern Mutual. "But for many young people, purchasing an engagement ring requires serious planning and saving. Marriage isn't only an emotional decision; it's also a financial one."

To avoid Andy's dilemma, Holbrook suggests future couples should have a conversation about their financial goals and create a plan to ensure they are positioned for success in the next step in life. Northwestern Mutual provides financial planning resources for individuals at all stages in life. Visit Northwestern Mutual's Life Events page to learn more about speaking with a financial advisor.

*The Knot 2014 Real Weddings Study Statistics

About Northwestern Mutual
Northwestern Mutual has been helping families and businesses achieve financial security for nearly 160 years. Our financial representatives build relationships with clients through a distinctive planning approach that integrates risk management with wealth accumulation, preservation and distribution. With more than $230 billion in assets, $27 billion in revenues and more than $1.5 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than 4.2 million people who rely on us for insurance and investment solutions, including life, disability and long-term care insurance; annuities; trust services; mutual funds; and investment advisory products and services.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI, and its subsidiaries. Northwestern Mutual and its subsidiaries offer a comprehensive approach to financial security solutions including: life insurance, long-term care insurance, disability income insurance, annuities, investment products, and advisory products and services. Subsidiaries include Northwestern Mutual Investment Services, LLC, broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company, limited purpose federal savings bank; and Northwestern Long Term Care Insurance Company.

SOURCE Northwestern Mutual