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How would you handle this situation?

Fi and I are paying for the majority of the wedding ourselves, with a little help from my parents. We can't afford a whole lot, so we are having family-only. Extended to the aunts/uncles/cousins of FI and I. STDs were sent out 2 weeks ago because 90% of our guest list is OOT. I get an email from FI's grandmother today that says "Hi Dear, you must have forgotten to send STDs to Mr/Mrs .... and Mr/Mrs ...... because when I called them to ask if they had gotten them, they said no. I let them know that you must have forgotten and would send them both one right away." These guests are cousins of his grandmother...we are not extending that far in the family tree because that would add another 5 couples on my family's side as well. I am not sure how to handle this because she called and told the guests that I would send them out...
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Re: How would you handle this situation?

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    I wouldn't call grandma's cousins, but I would explain the financial situation to grandma and just let her know that it's not possible to invite them.
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    I would explain to her that as much as you would looove to have those couples, it is simply not in your budget. If she presses the issue you can suggest she cover the expense for guests she would like to see invitied. I know this is sticky but it is a downhill slope if you do not stick to your guns. Just be polite, firm, and apologetic that you just can't have every one you want to have. On another note: this is her faux pas for inviting other people to your wedding without checking with you. Not yours. Keep that in mind.
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    Ya, I know I definitely need to talk to her, but I have never met these cousins before and am embarassed that they might now think I chose not to send some to them...
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    She invited people you have never met? Wow. I wouldn't even call them, you don't have to explain to them and since grandma already called them, I assume she will be talking to them again and she can let them know.
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    Not only not met them, but never even heard them talked about...
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    I would reply to her e-mail with: "Due to our budget, FI and I have decided to extend invitations to ONLY aunts, uncles and first cousins. We hope you understand and I apologize for the confusion." If she still has a problem, she can take it up with your FI.  
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    LMills - most people understand that, especially in this economy, inviting hundreds of people is just not in the budget. Hopefully these couples are some of them...
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    First of all, have your Fi deal with this since it's his family.He can call grandma and explain that due to budget constraints the guestlist is limited. If she has a fit over this he can let her know she is free to contribute in order to make it possible for these guests to be included.Don't contact the uninvited guests, she should have never suggested that they were invited and that's her mess to deal with.
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    Well the weird thing is that we explained all of this to them when we first started our guest list (in July) and I had her and Fi's mother send me their "must-haves". These people were not on it...
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    lpstl- ya, i am definitely going to have FI address this one.
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    WTH, is grandma taking her meds? Whoever talks to her might want to throw that in there if she gives you a hard time.
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    Oh, she is def crazy...this is not the first situation...just the first where she has blamed me lol
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    How odd. Why is she contacting YOU about this? Your FH can call her and remind her that the two of you had decided not to invite those people as you had all already discussed before. He's very sorry she told them they were invited, but she'll just have to let them know they're not. (Or depending on family dynamics, he can talk to his parents and ask them to talk to her, but there's no reason you should be involved this in any way.)
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    I don't know...she just always sends her weird requests to me! I have only met her once as well, which is what makes it more odd. Ya, I will have FI give her a call and explain **for the second time**
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    fi's grandmother....his job to call her!
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    Thanks everyone :) Looks like FI has a fun phone call ahead of him!
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    I agree with the idea of having your FI talk to his grandma about it. Any issues that arose with the ILs during planning were taken care of by DH. It sucks that she did that, but it's her fault and she's the one who looks silly.
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    Whew boy family sometimes can be a total nightmare, Grandma needs to chill! Yeah your boyfriends gonna love this one.
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    If it's that important to his grandma, why don't you just invite them? These cousins could be like sisters to her. You don't automatically have to extend invitations to the five couples in the same category on your side, though. No one will line the guests up at your wedding according to relationships and figure it out. If you do decide to do this, however, just make sure Grandma knows that's it ;)
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    Expat- I really wish we could, it is just not in the budget unfortunately :( The only reason I mention the additional couples on my grandmother's side is that she is really close to them as well. I couldn't say no to her and allow FIs gram's cousins to be there, just wouldn't feel right.
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    Gotcha - That's a bummer. In that case, I'd let/make FI deal with it.
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    Call grandmother and tell her because of budget reason we are keeping it close family only.  I had to tell that to my step mother about 10 million times during the planning process.  Even though we were all pitching in we still had a budget and I couldn't afford to invite our grandparents brothers, sisters, and cousins who I dont even know.
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