‘I think that’s absurd’: Dave Ramsey says don’t blow your savings on a $25,000 funeral. Here’s what Canadians should know

That's the gut-wrenching dilemma a caller named Jeff brought to Dave Ramsey and Jade Warshaw on The Ramsey Show (1). Jeff's mother — a senior living on a fixed income, with very little savings and a deteriorating home as her only asset — had toured a funeral home and was eyeballing the full package. The funeral home offered a payment plan, but Jeff wasn't sure it was the right move.

Ramsey made the situation clear for Jeff.

'You did not live your life in a Mercedes'

Ramsey was blunt: After hearing that Jeff would be covering the cost because his mother didn't have the money, he quickly rejected the idea.

"If she wants to spend HER money on her funeral, I don't mind that," he said. "But I'm not going to pay for it out of my pocket if I'm you. I think that's absurd."

Ramsey advised Jeff to sit down with his mother and set a firm budget — no more than US$5,000 to US$6,000 (C$6,900 to C$8,280) for the funeral. He said Jeff could pay for it after she passes, then seek reimbursement from her estate once the house sells, but only if she clearly documents that arrangement in her will.

He also urged Jeff to reason with his mother: Don't spend the last of your money enriching a funeral home.

"Mom, you did not live your life in a Mercedes, and you shouldn't die in a Mercedes," Ramsey added.

The emotional truth in that thought is universal, perfectly applicable in Canada, where funeral costs have climbed steadily and seniors on fixed incomes face similar pressures.

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What do Canadians live on in retirement?

Jeff's mother was surviving on US$1,600 (C$2,181) a month in Social Security. In Canada, the nearest equivalent is a combination of the Canada Pension Plan (CPP) and Old Age Security (OAS) — meaning many seniors are in a similar financial position.

As of April 2026, the maximum monthly OAS payment for Canadians aged 65 to 74 is C$743.05 — for CPP, that figure is $1,507.65 (2). For low-income seniors, the Guaranteed Income Supplement (GIS) can add additional support — but even with all three, many seniors are living close to the edge.

If you have a parent in that position, putting them — or yourself — on the hook for a C$25,000 to C$35,000 funeral isn't a tender tribute. It's a financial trap.

Should you prepay for a funeral in Canada?

Ramsey wasn't only opposed to Jeff spending a small fortune on his mother's funeral. He also warned against prepaying for funeral expenses altogether — advice that's important in a Canadian context as well.

"Do not write a cheque prepaying the funeral home because from that point forward, you make $0 on your money except for the inflation rate on a funeral," Ramsey said.

His argument: The opportunity cost of tying up cash with a funeral home — versus investing those funds — is significant. He argued that prepaying can leave a family with extravagant final expenses that make no financial sense.

In Canada, prepaid funeral contracts are provincially regulated — not federally — and the rules vary. For example, in British Columbia, funeral, burial and cremation services are governed by the Cremation, Internment and Funeral Services Act (3), while in Alberta, end-of-life services are governed by the Funeral Services Act (4). In Ontario, the Funeral, Burial and Cremation Services Act, 2002 requires that funds paid under a prepaid contract be held in trust or used to purchase a life insurance policy on behalf of the buyer (5).

All provincial legislation is similar in nature and provides some consumer protection that doesn't exist in all U.S. states.

Still, the Bereavement Authority of Ontario (BAO) — the delegated regulator protecting consumers and overseeing the death care sector — advises Canadians to read prepaid contracts carefully, understand cancellation and transfer rights, as well as confirm that funds are protected if the funeral home closes (6).

The BAO's guidance aligns with Ramsey's warning: Preplanning a funeral where you choose your preferences and document your wishes can be genuinely useful and reduce family stress. But prepaying is a different matter — and should be approached with caution.

How much does a funeral cost in Canada?

If you're not prepaying, how much should you set for a budget?

According to the Funeral Service Association of Canada (FSAC), the cost of a full funeral service with burial typically ranges from C$7,000 to C$16,000 or more, depending on the province and the services selected (7). Direct cremation is significantly less expensive, ranging from approximately C$850 (Vancouver) to over C$2,000 (Saskatoon) (8). Costs in major urban centres like Toronto, Montréal and Calgary tend to run higher than in smaller communities.

Funeral homes in most provinces are required by law to provide itemized price lists for their services so consumers can compare costs and avoid being upsold on extras they don't need or want.

As Ramsey told Jeff, the amount spent on a funeral says nothing about how much you loved someone.