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If I were you, I'd have Fiance tell her that although her gift is genereous (even though it isn't) that Fiance and you cannot afford it given your new fiancial circumstances.
EDIT: Maybe you could suggest a local place for a honeymoon. I know it's not what you wanted but perhaps it'll be cheaper. Maybe key west?
I agree with beekiss2. Have your FI talk to her. Did she already book everything for your Vegas honeymoon? Because if not, you both should look into a "staycation" honeymoon location before talking to her. Find a nice resort or some other type of getaway that is closer to home, one that you can drive to for a nice road trip instead, but is equal in price/value for what she was planning for you in Vegas. Then when FI talks to your FMIL, have him ask if she would be willing to change the honeymoon plans and pay for your closer-to-home-honeymoon instead.
I agree with both posts above.
I would nicely tell her that you appreciate the gesture but unfortunately with the wedding/house you can't afford to extra $$ the plane tickets will cost.
JeanT do you have a honeymoon registry? You may be able to help get some of the funds you need through the use of a honeymoon registry. However, most honeymoon registries don't see a lot of action until right before your wedding, or even on your wedding day. So while you may not be able to afford to go right after your wedding, you may be able to a few weeks after your wedding.
You can usually save some money by booking your trip as a package, rather than doing it ala carte. Southwest Airlines has great Vegas packages.
Best of luck!
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My soon to be mother in law decide her gift to us would be our honeymoon. She is sending us to Vegas and now a month beofe the wedding she is telling us we have to get our own plan tickets. They are about 400 a piece. I am very upset becasue this is suppose to be a our gift and most importantly we don't have the funds to buy the ticket, since we are paying for the wedding. On top of that we just bought a house so we have new mortgage bill and utilities and the rest of the wedding to plan for. What should I do? I really would love this time away but I can't afford the tickets.