What’s An EFFAK And Why Should I Care?
We live in a vulnerable world where it’s likely that we – or someone we know – will be affected by an emergency event. The sneaky nature of emergencies requires them to come when we least expect it. Yet many of us do not think to prepare our financial interests in advance.
In an emergency, what information – particularly financial information – should you have readily available, sort of a survival basket? You might have to reach for that basket not only for a possible tornado, but also during a massive power outage, pandemic, or flood. You might also have to find and use the survival basket of family or loved ones in the case of a serious disability or even death. Also consider that if an emergency occurs, you may not be at home, but at work or on vacation, and will still need access to your information.
How do we go about identifying the financial information we need in an emergency or a catastrophic event? For example, what documents would be necessary if you had to prove your income or your assets, or your expenditures in order to receive financial assistance? A number of sources are very useful in assisting you in not only identifying that information, but with storing and accessing that information. One of the most thorough resources is the Emergency Financial First Aid Kit (EFFAK), a document created by the Federal Emergency Management Agency (FEMA) and Operation Hope.
Longtime school teacher turned HCA (HOPE Coalition America) Program Coordinator, Pamella Snyder, believes in being prepared for the worst situation possible — be it financial or physical — and gives instruction to Gulf States residents on how to avoid being caught unprepared. “I’ll say it again; it could happen to anyone. Whether it’s a hurricane, tornado, earthquake or fire, take a hour or two of your time this month and fill out an EFFAK; I’ll even walk you through it,” says Snyder, a Katrina survivor whose home was reduced to a pile of rubble after the storm. “If we’d had a completed EFFAK, we could have rebuilt our home more quickly. Not having records of our collective account and personal information made rebuilding our lives a nightmare. While we can’t prevent natural disasters, we can take steps to prepare for them,” she asserts.
Perhaps you have already gathered your important papers and have a method for keeping your financial house in order. If so, preparing for a financial emergency is simply the next step in this process. The EFFAK, which serves as a personal inventory and document finder for your financial information and important papers, can be the most effective way to recover from an emergency or disaster. After a disaster, financial issues affect more people than personal injury or direct property damage.
What is contained in an EFFAK?
An EFFAK contains personal household information, contact information for professional advisors and health care providers, and a checklist for important legal documents and financial statements. The EFFAK is a simple tool designed to assist you and your family in maintaining financial stability in the event of an emergency. Having an Emergency Financial First Aid Kit helps you to identify and organize key financial records and provides a quick reference file for your most important financial documents.
The EFFAK is divided in four sections:
- Personal Household Information
- Professional Advisors
- Checklist of Important Legal Documents and Financial Statements
- Private Security / Access Information.
Why bother?
While the probability of an emergency or a disaster might seem slim, keeping emergency financial information is extremely valuable if you truly need it. Think about stories you may have read about Katrina survivors reestablishing their lives. If you live alone or are a single parent, this project may be all the more necessary.
Completing a financial took kit such as the EFFAK can also help you become more financially literate and better prepared for routine financial responsibilities as well. It might also be helpful for related tasks like filing income taxes, keeping medical records, or making an estate plan.
Filling Out & Storing The Information
Completing the EFFAK can be done in two ways:
- downloading the document, printing it out and writing the information manually
- entering the information in a file on your personal computer
The next process is to store the information, which can be done in several formats. It is recommended to store the information in more than one way.
- Paper format. You can save and store the original and/or copies of your EFFAK in a fireproof / waterproof metal box or safe. You might also want to store a set in your safe deposit box; and keep the key in a safe place. Another option is to give a copy of these important papers with a trusted family member or your attorney, if you have one.
- Online storage. You can save and store digitally-created files or scanned copies of your important papers by uploading them to a secure online storage account, or use the online storage space you may have with your ISP (Internet service provider). Just make sure you ask beforehand what happens if you cancel your service. Of course, you should do your homework and investigate the security of any of these methods with your particular resource.
- Offline storage. You can save and store your virtual EFFAK to portable storage devices or media, such as CDs, diskettes, or Flash drives. Because these devices or media are easy prey for thieves, it is recommended that the files are password-protected. There are also personal recordkeeping software programs that allow you to save the information to a storage device or media, as well as make paper copies. Saving the information to your personal computer may not be helpful if you must evacuate your home or you have no power.
How about User IDs and Passwords you use to log into anything from your bank account to your credit card accounts? Some experts suggest that you keep a list of PINs, account numbers, and passwords on the portable storage device or media, again, as long as the file of that list is password protected. If you handwrite a list of your User IDs and Passwords, make sure the list is updated and in a safe place. The EFFAK guidelines stress that you should not include a list of passwords and PINs in the EFFAK documents.
In your home, you should keep the paper format and digital copies of the EFFAK and documents at home in a fireproof/ waterproof metal box or safe. Because ATMs do not work when electricity is out or they may not be restocked during an emergency, be sure to include some $10 and $20 bills in your storage box.
Update your kit whenever your documents change. For example, if you sell or buy a house, get married or divorced, change your will, have new tax filings, a new passport or change your parental status. At a minimum, be sure to review and update your EFFAK at least once a year.
For your own EFFAK to fill in, visit the Hope Coalition America website at www.hopecoalitionamerica.org. The EFFAK is a tool for all Americans. Regardless of our annual income or financial assets, we all need to have our financial records in order to help maintain stability in the event of an emergency.
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