Building an ‘Ak’éí Emergency Fund

By: Delphina Thomas

Tribal affiliation: Diné

Study: PhD in Justice Studies

As I’m writing this article, we’re deep into social distancing, quarantining, self-isolation or however you refer to it. I’m comfortable financially, and I’m not struggling to pay my bills or put food in the fridge. I’m not saying this to brag about my financial situation, but I want people to know how far I’ve come. This wasn’t a future I ever envisioned for myself.

I grew up in a low-income household. I was poor. My mom was basically a single parent with a third-grade education and took any jobs she could to put food on the table and a roof over our heads. She struggled to keep the utilities on for my three older siblings and me. There were times when our electricity and water were shut off due to non-payment, and non-essential things like cable and internet were turned off for months at a time. My mom did everything she could to get everything turned back on.

As we grew up, it was our time to take care of our mom because that was one of the teachings she instilled in us: the importance of k’é (kinship) and ‘ak’éí (family). She raised my siblings and me to think about others.

Now, being in a comfortable financial position, I’m able to help her out because I have control over my finances. I’m not shaming those that can’t help their k’é or ‘ak’éí because sometimes it’s not possible.

Unfortunately, in this day and age, money does hold significance, and during times like these, in this pandemic, supporting k’é and ‘ak’éí empowers us to help those who need it most.

In issue 04, I talked about different kinds of savings accounts and I suspect, now more than ever, that an emergency fund would come in handy for many Native students. I don’t always use my emergency fund for myself, and I only use it when shimá (mom), shimásaní (grandma), shadí (siblings), shich’e’e (nieces), shiyáázh (nephews) or relatives need something. I guess you could call it “Ak’éí fund” when it’s absolutely necessary.

How to build and use an emergency fund

Be prepared for unexpected expenses so you can protect your savings.

Did you know that the average cost of any emergency in America is about $1,000? Only 37 percent of Americans have enough cash in savings to cover an unexpected expense (think: broken appliances, tire blowouts, high vet bill, etc.). The rest have to slash their budgets or look to credit cards or family and friends. A fully funded emergency fund is typically 3 to 6 months of essential living expenses. That amount many feel overwhelming, so start building your fund with these simple tips:

If your emergency dollars are in your checking account, you may accidentally spend them. Consider opening a savings account to make the money less accessible.

Set up an automatic monthly transfer between your checking and savings account or ask payroll to direct-deposit a portion of your paycheck into a savings account.

Every weekend give your emergency fund $10 — or whichever amount you choose. Just be consistent so you can see it grow over time.

Using your emergency fund

Reserve your emergency fund for unexpected, absolutely necessary and urgent expenses — medical bills, car repairs, sending money home to your loved ones, or helping to buy essential items like food, water, gas, wood, etc.

www.statefarm.com/simple-insights/retirement/how-to-build-and-use-an-emergency-fund

For more Next Door resources on adult financial education such as free virtual financial classes and more, visit: NextDoorChicago.com.

Explore savings account options at: NerdWallet.com.