The widespread drought across much of the United States will have a huge economic impact on agriculture and other industries, which will trickle out to the entire economy. The drought’s impact on the finances of your household will not be millions or billions of dollars, but even $50 – $100/month is serious to an average family.
For many of us, the drought increases our expenses. Like many of you, I’ll be paying high water and electrical bills the next couple months - the price for trying to keep my little garden alive, and using my air conditioning in this extreme heat. In the longer term, we can expect food prices (and perhaps other prices) to rise, and some folks will experience equipment breakdowns and household or vehicle repairs because of the weather. Others may be finding their income reduced due to the drought, creating even greater concerns.
Some financial tips are relevant for any financial pinch, no matter what the cause. We encourage you to browse through our archived MoneyTip$ by category (to the lower right on the blog website) for ideas that may help you manage your money amid the new financial challenges your household may be facing.
This natural disaster also creates financial concerns that we have not yet addressed. Please send your thoughts our way by adding a comment to this post - we’ll do our best to respond speedily. Your question, suggestion or comment may lead to discussion that will be useful to many others, as well. - Barb