Climate disasters hit harder when you don’t have a bank account » Yale Climate Connections

Transcript:

Climate disasters can be financially devastating. And recovery can be especially hard for people without bank accounts.

Mauricio Garcia is with UnidosUS, a Latino advocacy group. He says about 10% of Latino households in the U.S. do not have a traditional checking or savings account. That’s about twice the national average.

People’s reasons for avoiding banks vary. Some are deterred by fees and overdraft charges. Some do not have the identification needed to open an account.

Garcia: “Sometimes there’s language barriers. … There might be fears associated with putting your money into an institution that you’re not familiar with.”

But without a bank account, it can take longer to receive disaster relief aid. It can be hard to apply for loans or insurance.

And people may have to rely more on costly services like high-interest payday loans to help make ends meet.

So Garcia’s group partners with community groups to educate people about secure and affordable banking options.

He says as climate disasters grow more common, this kind of outreach can help people recover more easily and gain more control of their financial future.

Garcia: “Financial empowerment is so important – to know and prepare for these events that are coming fast and furious every day.”

Reporting credit: Sarah Kennedy / ChavoBart Digital Media