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Cash management

Why cash works when nothing electronic does, and how much to keep on hand for emergencies.

SKILL AREAFINANCIAL RESILIENCE
SKILLCASH RESERVES
TYPEINFO PAGE
01 — WHEN ELECTRONICS FAIL

Cash is the only universal backup

ATMs, credit card terminals, mobile payment apps, and online banking all require electricity and network connectivity. During a power outage or network disruption, cash is the only payment method that works. This is not theoretical; it happens during every major storm, earthquake, and infrastructure failure.

02 — HOW MUCH

Small bills for several days

FEMA recommends keeping enough cash for several days of fuel, food, and basic needs. A practical amount is $200 to $500 in small denominations ($1, $5, $10, $20). Small bills matter because vendors during emergencies often cannot make change.

Keep the cash in your emergency kit, not in your wallet. It is reserve money, not spending money.

03 — SECURITY

Quiet, distributed, accessible

Do not advertise that you keep cash at home. Split the reserve between your go-bag and a secure location in the house. The purpose is quiet accessibility during an emergency, not long-term savings.

QUICK REFERENCE
  • Cash is the only payment method that works without electricity
  • Keep $200-$500 in small bills ($1, $5, $10, $20)
  • Store in emergency kit, not wallet
  • Split between go-bag and a secure home location
  • Do not advertise cash reserves
SOURCES
  1. Financial Preparedness — FEMA cash preparedness guidance.