When the matter of financial planning comes to mind, chances are that you might consider things like weddings, purchasing a house, or sending a child to college. There is one reality that a lot of individuals do not take into account in regard to savings goals: the expense of a funeral.

It may not be the most positive topic, however, a funeral fund is one of the wisest and most considerate things that you can set up, on behalf of yourself and your loved ones.

Why you should plan for your funeral

Funerals are costly. The simplest of funerals might cost £3000-£5000 easily, and a more elaborate funeral can be over £7000 when you add flowers, transport, service, and reception. You would not want to organize a wedding without a budget. Similarly, it is dangerous to leave funeral costs to fate.

Planning a funeral is no different than planning any other financial goal. You save your family the headache of an unpleasant surprise and guarantee yourself a stress-free moment.

Establishing a viable goal

First, find out some statistics about average funeral expenses in your locality. Then think of whether you would prefer a burial or cremation. A simple farewell or a ceremony?

When you have a rough estimate, make a goal, just as you would with a holiday or buying a car. Putting aside £25-50 a month can go a long way as long as you start early.

How a dedicated funeral fund works

A funeral is merely a savings account or an investment piggy bank that is used to cover the cost of a funeral. There are several ways you can handle it:

• Install a savings account and add funds on a monthly basis
• Open a high-interest or fixed-term account to expand your savings quickly
• Specify the funding in your will or inform your executor so that the funds can be utilized accordingly.

The trick is to make it purposeful. Do not merely leave it to chance that you will have something left out of your overall savings.

Funeral plans as an alternative

Although a savings fund is flexible, another option would be a prepaid funeral plan, where you can lock in the price now and plan ahead. Most people choose funeral plans because they eliminate the guesswork and ensure that their wishes are carried out exactly as they intended.

The funeral fund offers greater control and availability, whereas a funeral plan typically has fixed pricing and formal arrangements. You can even opt for both.

Advantages to your loved ones

The greatest benefit of establishing a funeral fund, perhaps, is a sense of relief among your family. During a mourning period, they will not need to rush to cover bills, raise loans, or fight over who will do it.

Saving to finance your funeral is as wise as planning in advance for your school fees to ensure that future generations thrive.

The bottom line

Pre-planning your own funeral is a wise decision. Establishing a funeral account is just an addition to the whole, responsible financial planning. And by saving just a small amount today, you are giving your loved ones peace of mind and one thing less to worry about.