How to Build a Financial First Aid Kit
A guide to keeping financial documents safe, secure and accessible in case of emergency
Introduction
While Californians are no strangers to earthquakes, high winds, floods and mudslides, recent catastrophic wildfires and the COVID-19 pandemic have highlighted the importance of emergency preparedness, especially when it comes to managing finances.
Emergencies big and small can lead to unexpected expenses that require you to move money around, pull from savings, or rely on government assistance and other aid to make ends meet or recover from a crisis. Some emergencies may also require evacuating your home with little notice. In all such scenarios, you need to know where your financial documents are located and how to easily access them.
This National Preparedness Month, L.A. Controller Ron Galperin presents How to Build a Financial First Aid Kit to help families and communities prepare for an emergency. Scroll through this story map to discover what documents and information are vital to ensure financial readiness when disaster strikes.
Build Your Kit
Think of your Financial First Aid Kit as something similar to the emergency medical first aid kit you keep at home. But instead of bandages, water, medicine and tools, your Financial First Aid Kit should include any important documents and information you might need to access in case of an emergency.
Below are four categories of items and specific documents that should be in your kit. If you are using copies to build your kit, make sure to photocopy both sides of any documents or ID cards.
Identification Documents
- Driver’s license(s) or other photo ID(s) (including for children)
- Birth certificate(s), adoption/custody papers
- Marriage license or divorce decree
- Social Security card(s)
- Passport(s)/Green Card(s)
- Naturalization papers
- Military ID or discharge papers
- Pet ID(s), proof of ownership or adoption and service animal certification
Legal and Financial Documents
- Bank/financial institution, investment and retirement account statements (for proof of accounts)
- Lease/rental agreements
- Mortgage papers/real estate deed of trust
- Utility bills (useful for account information and showing proof of residence)
- Other financial obligations (vehicle loans, credit cards, student loans, automatic payments)
- Vehicle registration/proof of ownership
- Insurance papers for medical/health, life, property, auto, pet, flood, funeral, etc.
- Pay stubs
- Contracts to which you are a party
- Government benefit statements and information
- Tax returns and statements
- Estate planning papers, including wills and trusts
- Rewards accounts (frequent flyer programs, hotel rewards)
Medical Information
- Physician, pediatrician and other medical specialist contacts, including dentist
- Health insurance and pharmacy ID card(s)
- Immunization and allergy records
- Dental records
- List of prescriptions/medications
- Disabilities documents
- Medical information for pet(s), including veterinarian information, immunization record(s), prescriptions/medications
Contacts, Passwords and Cash
- List of emergency contacts (names, addresses and phone numbers)
- List of usernames, passwords and security codes
- Cash for day-to-day spending to meet basic needs
Keep it Safe
Once you have gathered all the must-have documents for your Financial First Aid Kit, it is critical to take precautions so that your identity and info remain safe and secure. There are a number of storage options for you to choose from, in addition to useful technological tools and applications that can provide easy access to your information.
Review this Checklist
Sometimes it takes a natural disaster or a global pandemic to realize how important it is to have your financial records organized and accessible. If you follow the information above, your Financial First Aid Kit will be ready for any emergency that may come your way. Review these four simple steps to make sure your kit is complete and you are prepared for anything that comes your way: Gather, Evaluate, Safeguard and Update.
1: Gather
Gather all important financial documents and contacts to place in your Financial First Aid Kit. Make sure you have the original or a double-sided copy of each applicable document listed above.
2: Evaluate
Go over all documents in your kit to be sure that they are accurate and fully up to date. You should do this at least every year, but a better practice is to evaluate your documents every six months.
3: Safeguard
Store paper and electronic copies of your files in safe locations that are easy to remember and access. Find a safe location for the physical copies and a separate location for your tech tools. Keeping an additional electronic copy of your kit at your workplace (or somewhere outside the home) is a good idea too.
4: Update
Revisit and update your Financial First Aid Kit regularly. This is especially important when significant changes in your life occur, such as changing jobs, homes or getting married or having children.
If you follow this guide, you'll have everything you need to make sure your financial documents are safe and secure.
