Adapted from the FDIC’s Money Smart Program

No one likes to think about the worst case scenario or that a worst case scenario type of event will ever happen to them. When a disaster strikes, there are several ways it can cause financial strain. From scams, to surprise costs, keep the following in mind when preparing your family and your finances for natural disasters:

1. Cost of Meeting Immediate Needs

Disasters can affect the availability of food, water, shelter, and other basic needs and disaster relief programs may not have the things you need most readily available.

2. Costs of Repairing and Replacing Items

It’s important to note that insurance and disaster relief programs may not cover ALL expenses and you may need to cover replacement costs of necessary items before you receive aid. (Get tips on building an Emergency Fund here) Replacing birth certificates, passports, driver’s licenses, and other important documents may have additional costs.

3. Ongoing Costs of Items You Need

You may not have needed these services before the disaster but think about mental/physical health services. Sometimes, these services are provided for FREE shortly after a disaster, but eventually you’ll have to cover the costs on your own.

4. Identity Theft

Any time a disaster strikes, it could result in others having access to your personal and/or financial information. Takes steps to protect your information online and learn how FGB can help you protect your information.

5. Scams

People affected by natural disasters are often PRIME targets for scammers.
Tip: If it sounds to good to be true, it likely is! Click here to read more about ways to spot warning signs of scams.

6. Access to Financial Resources

During and after a disaster, you may lose identification documents that you use to gain access to your financial resources. You may also lose or forget you account number, access codes, debit cards, or credit cards.
Tip: Create a backup plan in case you do lose access to this information.

7. Penalties for Missing Payments

Falling behind on bills, mortgage payments, and other expenses can happen as you try to recover.  Creating and maintaining a budget can help you stay on track even in the midst of a disaster.

You’ve likely heard the phrase, “the best defense is a good offense.” And while it’s true in sports, you can apply it to your finances. One of the best ways to help protect yourself financially against natural disasters, is to be prepared. Click here for tips to save you time, money, and stress when a disaster strikes.