Planning ahead for anything in life can benefit you, it’s true. But when it comes to pre-planning and saving for your funeral, it’s often something that we never think about doing, or even consider talking about with loved ones.
That being said, taking the time to pre-plan and setting up what we like to call a “funeral fund” can help save you time, money, and give you peace of mind when the time comes. Here are our top five tips for starting your own funeral fund and managing your money.
Unlike many things, a funeral fund is actually a realistic goal that is entirely achievable. The truth is that most funerals have a general cost that you can aim for. Most funerals across North America cost between $7,000-10,000, and if you’re looking to save money, you can further reduce that hefty price tag -- check out our list of easy ways to make your funeral more budget-friendly here.
In fact, some options such as Eirene, are only $2,000 CAD, and offer the flexibility to choose how you would like to remember your loved one.
Staring a Funeral Fund in Two Simple steps
- Open a savings account
Opening up a separate account for your funeral fund is ideal. This will allow you to put away the money, and effectively forget that it is there. This “out of sight, out of mind” approach is ideal as you will be less tempted to tap into your account if you’ve forgotten about it. By opening an account with a bank, you give your loved ones an easy route to obtaining the money in case of an emergency. Read our guide on account closures and cancellations here.
By going with an accredited bank, and by opening an account with a high-interest rate, you can actually start making money off the interest. Just like with any other financial choices you will make in life, take the time to research and talk to professionals to see what your options are.
Last thing: make sure to state that the account exists in your funeral arrangements as well as instructions for how your loved ones can access it.
- Automate it!
Now that your account has been opened, set up automatic transfers to go into your funeral fund every month, week or at a cadence that makes sense for you.
The amount can be anything you please, from $50 a month to $10 a paycheque, just as long as you are regularly contributing to the fund. Small amounts, compounded over a long time can go a long way.
It’s just that easy
Really, from there, the hard work is done. Now, it’s up to you to keep contributing by finding ways to squeeze even just $5-10 extra dollars a month out of your expenditures to bank away.
One of the hardest parts of a funeral fund is being patient as your money accumulates. And there is an added benefit: the more you save, the less burden will be on your loved ones as they plan your end-of-life arrangements - and if you save more than your funeral costs, they will be left with a little extra cash to help them through a rough time.
Need help planning? Check out our free planning checklist ebook for some more direction on how to prepare. Download it here.