Financial lessons from disaster scenarios

Growing up in Nebraska’s tornado alley, I was keenly aware of the need to have an exit plan in case the sirens went off and I needed to take cover in the basement.

My plan had two key elements: I wasn’t going anywhere without my baseball cards or the family dog. And yes, I remember being put to the test on more than one occasion, trying to chill in a corner of the basement with my bulging box of cards and our brown dachshund.

The recent horrific fire storm that swept through the Denver suburbs and destroyed hundreds of homes with little advanced warning is but the latest reminder of the need for parents to have an emergency evacuation plan and to communicate it to the kids.

Be prepared to be peppered with questions: What about my toys?

Must I leave them behind or can I take some with me? What about my clothes? I can’t live without my cellphone! Will I have my medicine?

Even planning for disaster scenarios presents an opportunity to teach your kids financial lessons — in this case, insurance being the biggie.

My father was in the insurance business, and had a knack for explaining the ins and outs of insurance protection in an uncomplicated, calming way.

His basic message: We have insurance on the house to protect against the unexpected. Most of our stuff was replaceable, he’d say, so don’t worry about it because insurance would take care of it.

That’s what kids want to hear — reassurance that everything will be OK, that they’ll have a roof over their head, and that their “stuff ” will be replaced.

Not to trivialize evacuating from a fire or flood or whatever the case may be, but you can explain that insurance also covers living in temporary housing or an extended-stay hotel. Again, the message to your kids is that everything will eventually return to normal.

If you have older kids, feel free to take a deeper dive into deductibles, premiums and other costs associated with insurance.

Beyond insurance, include your kids in any plans on preparing for the worst.

The first step is to create an emergency grab-and-go file that includes some cash, copies of insurance policies, key phone and email contact information, and COVID-19 vaccination cards (though you should have a picture of your vaccination history on your cellphone). Your kids should know where to locate the emergency file in case you’re not around.

Your emergency kit could be expanded to include clothing, bottled water, food and even a toy or two to keep the kids entertained. For more suggestions, check the American Red Cross at www.redcross.org.

In addition, technology offers new and improved options, thanks to smartphones and home security systems that can alert you if a water pipe bursts or the furnace shuts down and you’re hundreds of miles from home.

It’s easy to think that events like the Colorado fire or the winter storm and massive power outage in Texas last year will never happen to you. But that whole idea doesn’t seem to match with reality anymore.

That’s why it helps to have at the very least a basic plan to prepare your family for the worst — and to keep your kids clued in.