My mum passed away 3 weeks ago and I can tell you I'd much rather have something tangible to remember her by than some money.
Yes it may smooth things over in those first few hard weeks but long term the loved object with memories attached would be worth far more to me.
Money for a funeral is always easy to come by, either through a loan, credit card, family, or public funds.

My advice: buy the watch (or whatever else) not with an eye to it being an investment for funeral expenses but as an heirloom that will bring a smile to your kids faces in years to come. Buy it and go make some memories with them and it.