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Special Topic
Planning
for a disaster: Getting one’s house in order
 Residents
of the southeastern United States prepare regularly for hurricanes
and have learned many lessons that can be applied to other
types of disasters. While most people naturally think first
and foremost about safeguarding themselves and securing their
property before a disaster strikes, their next thought should
be about safeguarding documents and paperwork that will help
in recovery during the aftermath. In the wake of the hurricane
season that devastated the Gulf states this past year, many
people found themselves without the financial information
tools they needed to react quickly to their changed circumstances.
Act now
Getting one’s financial house in order before hurricanes
or other unexpected events occur will help immensely, from both
financial and personal perspectives, in bouncing back. Preparation
is essential, and preparations should include plans for oneself
as well as elderly relatives or others for whom the planner
is responsible. Some basic steps to be better prepared include:
- keeping an adequate amount of cash on hand (enough to
last a week until a banking institution can be reached for
additional resources);
- having credit cards as an alternate means to make purchases
(credit cards should have a sufficient balance against which
to make charges);
- gathering important documents and keeping them together
in a waterproof and fireproof container in an easily accessible
and safe place (it’s advisable to include among these
documents an address book with current phone numbers, e-mail
addresses, etc., for family and business contacts; family
records and legal documents; insurance policies and medical
records; family photos; and any other irreplaceable documents);
- compiling a list of credit card account numbers, bank
and other financial account numbers, and other monthly bills
or periodic household accounts (these numbers and contact
information should be included with important documents);
and
- conducting a household inventory by photographing or videotaping
each room in a house for insurance claim purposes.
The aftermath of disasters presents
many unexpected circumstances. In addition to taking these
steps to ensure readiness for dealing with financial matters,
individuals should also consider arranging direct deposit
of paychecks and learning to manage checking accounts and
bills online. Online bill payment can prove invaluable during
periods when local financial service providers are unavailable.
Finally, there are many governmental and nonprofit agencies
whose sole purpose is to assist citizens following disastrous
events (see “Disaster preparedness list”).
Learn to plan
As a learning experience for students, have
them create a financial preparedness plan for themselves and
their families. This exercise will not only help them realize
the value of looking ahead but will also introduce them to
the kinds of financial questions they should begin thinking
about for their future.
By Gail Psilos, community relations manager, New Orleans Branch
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