In the wake of recent natural disasters, there has been much emphasis over the need for people to prepare a disaster readiness plan, to ensure individuals have the tools they need on hand and know what key actions to take. While a significant majority (73%, according to a Harris poll) of American have at least started preparing for a disaster, a much smaller percentage have considered their finances when doing so.
With most Americans (71%) realizing a disaster could have a notable effect on their financial health, only 15% stated their disaster plan included considerations on how to protect their finances. Instead, the survey found that:
- 31% had stored backups of their key personal, financial and medical information in a safe place
- 19% had created wills or estate plans
- 24% had set up emergency savings accounts
Says Margaret Poster, CPA, and member of AICPA’s National CPA Financial Literacy Commission, of setting up a financial disaster plan, “If COVID-19 has put a dent in your resources, keep track of money you have spent that was set aside for other contingencies. When this crisis has passed, you can then set a goal to replenish those savings and develop a plan to get there.”
Source:
https://www.journalofaccountancy.com/news/2020/may/natural-disaster-planning-for-finances.html
