How to Avoid Unnecessary Funeral Expenses

The loss of a loved one is devastating. The last thing you need during your time of grief is the added shock of a funeral bill costing thousands of dollars more than you expected.

According to the National Funeral Directors Association (NFDA), the median cost of a funeral with viewing and burial was $8,300 in 2023, and for a cremation with viewing, it was $6,280. And those already high prices keep climbing every year.

But there is good news. Many expenses that make up those high totals are either unnecessary or significantly marked up. By learning to identify and avoid unnecessary funeral expenses, you can dramatically reduce costs while planning a meaningful tribute.

We’ll explain where people often overspend on funerals and why. More importantly, we’ll share strategies to keep those costs down—from choosing affordable alternatives to planning ahead. Armed with this knowledge, you can focus on honoring your loved one without the anxiety of excessive bills or the regret of emotional overspending.

Understanding Funeral Costs and Trends

Before we dive into unnecessary expenses, it’s important to understand the costs associated with a typical funeral today. The National Funeral Directors Association regularly tracks these costs through member surveys.

Average Funeral Costs

According to the NFDA’s most recent data, the national median cost of a funeral with viewing and burial was $8,300 in 2023. This includes:

• Basic service fee: $2,495
• Removal/transfer of remains to funeral home: $395
• Embalming: $845 
• Other preparation of the body: $295
• Use of facilities/staff for viewing: $475
• Use of facilities/staff for the funeral ceremony: $550
• Hearse: $375
• Service car/van: $175
• Printed materials (memorial cards, etc.): $195
• Metal burial casket: $2,500

The national median cost for a funeral with viewing and cremation was slightly lower at $6,971. The main difference is the cost of a cremation casket ($1,310) versus a burial casket.

Rising Cremation Rates

While burials are still common, cremation has become increasingly popular in recent years. In 2023, the projected cremation rate was 60.5% compared to 34.5% for burials.

This trend is driven by factors like:

• One of the lowest funeral costs compared to burials. 
• Increased environmental concerns.
• Fewer religious prohibitions against cremation.
• The desire for flexibility in memorialization options.

Personalization and Rising Costs

Another key trend in the funeral industry is the growing demand for personalized and meaningful services. Families increasingly want funerals to be a celebration of their loved one’s life, leading to more customized and unique elements.

While this trend started before 2020, the COVID-19 pandemic accelerated the virtual shift as more families sought intimate and creative ways to honor their loved ones when traditional large gatherings weren’t possible.

However, personalization often comes at a higher price point. Customized printed materials, video tributes, releases of doves or butterflies, and catering all add to the final bill.

Other factors contributing to rising funeral costs over time include:

• Inflation across goods and services.
• Increasing salary and benefits costs for funeral home staff.
• Investments by funeral homes in upgraded facilities and equipment.

Understanding these overall trends in funeral costs provides an important context for planning funerals on a budget and making decisions about where to save and where to spend. The goal is to create a meaningful tribute without the burden of paying more than necessary.

Common Unnecessary Funeral Expenses to Avoid

With a better understanding of general funeral costs, let’s take a closer look at some of the most common areas where people overspend. Awareness of these unnecessary expenses empowers you to make more informed choices.

Elaborate Caskets and Burial Vaults

One of the biggest expenses in a traditional funeral is the casket. Average prices range from around $2,000 for a basic model to $5,000 or more for an elaborately decorated or high-end casket.  

Understandably, many people feel pressure to choose the “best” casket to honor their loved ones and reflect their importance. Concern for appearances and worries about being perceived as cheap can drive people to spend more than they can comfortably afford.

However, it’s important to remember that the casket’s purpose is simply to hold the remains. Your love for the deceased is not measured by how much you spend. Many dignified options at lower prices include rental caskets for viewing that cost a fraction of purchasing.

Outer burial containers and vaults are another source of marking up. While cemetery policies may require a basic concrete grave liner to prevent soil collapse, upgraded vaults are rarely necessary. Focus funds on tributes that mean more to your family.

Embalming Services

Many people assume embalming is a required part of the funeral process. In reality, it’s rarely legally necessary unless the body is being transported across state lines or not buried within a certain time frame.  

Embalming costs are generally around $845 and may be included in a funeral home’s basic fee. However, if you are planning a direct burial or cremation without a formal viewing, embalming is an expense you can often avoid. Discuss your options with the funeral director.

Overpriced Funeral Home Facilities  

Using a funeral home’s facilities for visitation and the funeral service itself is another area where costs can quickly add up, often costing hundreds of dollars for just a few hours.

Consider alternative venues for these gatherings that can be just as meaningful while costing less:

• Hold the visitation and funeral at your place of worship, which may be offered to members at a reduced rate or even for free.
• Host a viewing at home, surrounded by the comforts of family photos and belongings (while skipping embalming).
• Have an intimate graveside service for close family and then a larger memorial service at a park or community center.

In some cases, the funeral home may be the most convenient option. But it’s worth exploring other choices, especially if you have a large circle that wants to pay respects.  

Expensive Printed Materials and Flowers

Seemingly small details like printed programs, prayer cards, guest books, and signage can be unexpectedly costly when ordered through the funeral home. You may pay a premium for even basic materials.

Consider making your funeral programs and other printed items using online templates and local print shops. You can get creative with the design while still saving substantially.

Likewise, floral arrangements purchased directly through the funeral home are often marked up significantly and can cost hundreds of dollars. Opting for smaller, more minimalist arrangements and shopping at your local florist or even the grocery store can help keep costs down without sacrificing the beauty and symbolic meaning of sympathy flowers. 

Buying New Burial Clothing

It’s a common practice to dress the deceased in nice, new clothing for burial. However, this is another area where you can potentially save.

Choosing an outfit from your loved one’s existing wardrobe is just as respectful and is more authentic to their personal style. If you do want to purchase something new, it doesn’t need to be expensive. The sentiment is what matters.  

Recognizing these common funeral expenses that are either unnecessary or not worth the upsell price can help you budget accordingly and prioritize costs. In each category, there are ways to reduce spending without compromising the quality of the tribute.

The Benefits of Planning Ahead

One of the most effective ways to avoid unnecessary expenses is to look into funeral savings plans and stay ahead. By making arrangements in advance, you give yourself time and space to make informed decisions without the pressure of raw emotions or tight timelines.

Thoughtful Comparison of Options

With pre-planning, you can carefully evaluate your options for each aspect of the funeral. Rather than having to make quick choices during a time of grief, you can visit multiple funeral homes, ask questions, gather pricing information, and determine what’s most important to you.  

This might include comparing the costs of different types of caskets, discussing alternatives to embalming, or exploring unique venues for the service. You can weigh factors like pricing and value to determine the best fit for your budget and preferences.

Lock In Today’s Prices

Funeral costs have consistently risen year over year. By making arrangements and even pre-paying for certain items now, you can lock in current prices. This protects your family from having to cover any inflation-related increases down the line.

Many funeral homes offer price guarantees for pre-paid funeral savings plans. For example, if you purchase a burial plot for $1,000 today, your family won’t have to cover any additional costs for the plot when the time comes—even if prices have doubled. That can lead to significant savings over time.  

Prevent Emotional Overspending

Making funeral arrangements in advance also helps prevent emotional overspending. At the time of a loved one’s death, it’s understandable to want the very best of everything to show your love and respect. However, that emotional state can lead to purchasing unnecessary items or the most expensive options.

By making choices when you have time to reflect, you can consider what’s most meaningful rather than just the most costly. You’re able to think rationally about your budget and make determinations accordingly, preventing the regret of emotional spending.

Ensure Your Wishes Are Followed

Finally, pre-planning allows you to communicate your exact wishes for your own funeral arrangements. This can prevent your family from feeling pressured to overspend on items you wouldn’t have wanted in an effort to honor your memory.  

For example, you can specify that you prefer cremation with a simple urn or that, in lieu of flowers, you’d like donations made to your favorite charity. Your loved ones won’t have to guess at what you would have wanted or worry that a modest tribute is inadequate.

How to Save Money on a Funeral

In addition to advance planning, there are many ways to keep funeral costs down without sacrificing the quality of the tribute. Here are some specific tips for reducing expenses:

• Choose direct cremation or immediate burial: Without a viewing or funeral service, you can skip embalming and many of the associated funeral home costs. Ultimately, these options are considered to be one of the cheapest burial methods.
• Consider a home funeral: In most states, it’s legal for families to care for the deceased and host a viewing or service at home. This eliminates many funeral home fees.  
• Opt for a rental casket: If you want a viewing before cremation, you can rent a casket from the funeral home rather than purchase one, saving thousands.
• Choose an affordable urn or simple grave marker: These items often have very high markups. You can find beautiful options online or at local shops for a fraction of the cost.
• Hold a memorial service: Having a service without the casket or urn present can open up options for less expensive venues like a park, beach, or social hall.
• Have virtual attendees: Live-streaming the service allows out-of-town guests to attend without having to pay for a larger venue. 
• Make your own printed materials: With a quality home printer, you can create personalized programs and prayer cards using free online templates.
• Crowdsource photos and music: Rather than a pricey video tribute, ask friends and family to share photos and create a slideshow using a free platform. Create a playlist on Spotify rather than hiring live musicians.
• Choose locally grown flowers: Opt for seasonal blooms rather than expensive out-of-season arrangements that have to be shipped in. Consider potted plants that can be taken home and replanted after the service.  
• Provide your own food: Hosting a potluck reception or self-catering with simple appetizers is much less expensive than the funeral home’s catering packages.
• Limit unnecessary transportation: If possible, skip the funeral procession and have guests meet at the cemetery. Choose a burial plot close to the funeral venue.
• Donate the body to science: For those who don’t feel strongly about a burial or cremation, donating the body to a medical school or research institution eliminates almost all funeral costs.

These are just a few of the many ways you can reduce expenses. Don’t be afraid to get creative and focus on what is most meaningful to you and your family.

Financial Arrangements to Consider

In addition to examining your options for the funeral itself, there are several ways to prepare financially for the costs. Three of the most common arrangements are funeral insurance, pre-paid funeral plans, and funeral trusts. 

Funeral Insurance

Funeral insurance (also called burial or final expense insurance) is a type of whole-life insurance policy intended to cover funeral costs. Policies typically range from $5,000 to $25,000 and have limited underwriting requirements, making them easier to qualify for than larger policies.

Pros:  

• Can be an affordable way to set aside funds for funeral costs.
• Payout can be used for any final expenses, not just the funeral.
• No medical exam typically required.
• Premiums often remain level over the life of the policy.

Cons:

• Payout amounts are relatively small compared to other life insurance  
• If you live a long life, you may pay more in premiums than the policy value
• Policy may have waiting period before full coverage kicks in

Pre-paid Funeral Plans

Pre-paid plans allow you to arrange and pay for funeral services in advance through a particular funeral home or memorial society. Plans can be paid in a lump sum or through installments.

Pros: 

• Lock in prices for goods and services at today’s rates.
• Allows for time to personalize arrangements without time pressures.
• Can be transferred to a different funeral home if you move.

Cons:

• If the funeral home goes out of business, you may lose your investment.
• Money paid is tied up and inaccessible for emergencies.
• Changing your plan may result in termination fees.

Funeral Trusts

With a funeral trust, you set aside funds with a designated trustee (often a bank or law firm) to be used for your funeral expenses. You can fund the trust all at once or over time.  

Pros:

• Assets in an irrevocable trust aren’t considered part of your estate.
• Can fund trust over time as able.
• More flexibility to change arrangements than with pre-paid plans.

Cons: 

• Funds can only be used for funeral costs.
• Some states limit the amount that can be placed in a trust.
• Trusts may not keep up with inflation.
• Possible tax implications.

Ultimately, there is no correct answer for paying for a funeral in advance. Your choice depends on your unique financial situation, your preference for flexibility, and your comfort with risk.  

Finding Peace of Mind in Planning

The loss of a loved one will never be easy. While the grief will always be there, you can lessen the stress and worry by educating yourself about common funeral costs and planning ahead to ensure your wishes are followed.

Remember that there are affordable alternatives for almost every aspect of a funeral, and the most meaningful tributes don’t have to cost a fortune. Focus your planning on creating an authentic celebration of your loved one’s life.

By identifying unnecessary expenses, making informed choices, and preparing financially, you can find peace of mind and protect your family from the burden of both difficult decisions and substantial debt.

Though it may feel awkward to discuss end-of-life issues, open conversations with your partner, parents, or children can actually bring you closer. Sharing your preferences clearly is one of the greatest gifts you can give.

Planning for a funeral may not be easy, but it can make a difficult time a little bit gentler for your family. And that is truly priceless.