Cash or Traveler's Checks

In the aftermath of a major disaster, electronic payment systems are likely to fail. Power outages can render credit card machines, ATMs, and banking apps completely useless. In this situation, cash is king. Having a supply of cash in your emergency kit is crucial for being able to purchase essential goods and services when digital transactions are not possible. Its primary purpose is to provide you with a universally accepted means of exchange when the modern financial infrastructure is down.

Your kit should include a mix of small and large bills. Small bills ($1, $5, $10) are important because vendors may not be able to make change. The amount of cash to include depends on your family size and situation, but enough for several days of food, fuel, or lodging is a good target. Traveler's checks are another option, as they can be replaced if lost or stolen, but they are far less commonly accepted today and may not be practical in a local disaster. Cash is the most reliable choice. Store it in a discreet, waterproof container or bag, and divide it among different locations in your kit or on your person in an evacuation scenario.

This emergency fund is a critical part of your financial preparedness. It provides you with immediate purchasing power and a degree of autonomy when other systems have failed. Whether you need to buy fuel to evacuate, pay for a hotel room, or purchase supplies from a local store that is still operating, cash ensures you can make the transaction. It is a fundamental tool for navigating the economic disruption that follows a disaster.