The Proximity of Disaster Experiences and Financial Preparedness for Emergencies in the US


 
 
 This study investigated how the proximity of disaster experience was associated with financial preparedness for emergencies.
 
 
 
 The data used were from the 2018 National Household Survey, which was administered by the Federal Emergency Management Agency. The working sample included 4779 respondents.
 
 
 
 Logistic Regression showed that the likelihood of setting aside emergency funds tended to be the highest between 2-5 years after experiencing a disaster, which declined slightly but persisted even after 16 years. Recent disaster experience within 1 year did not show a significant impact, indicating a period of substantial needs. However, the proximity of disaster experience did not significantly affect the amount of money set aside.
 
 
 
 It is suspected that increased risk perception related to previous experiences of disasters is more relevant to the likelihood of preparing financially; whereas other capacity-related factors such as income and having a disability have more effect on the amount of money set aside.
