This study examines the relationship between natural-disaster risk and households’ contingency financial strategies and assess whether financial capability moderates those relationships. Using the 2021 National Financial Capability Study (NFCS), matched geographically to FEMA’s National Risk Index (NRI), this study tests whether residents in higher-risk areas are more likely to use short-term, high-cost borrowing (e.g., payday loans, cash advances) or maintain emergency savings, and whether perceived money management ability (PMMA) and objective financial knowledge moderate these financial behaviors.
