Weathering of the Wallet

How climate change can impact your finances

Climate change is not only bad for the world, it’s bad for your wallet. Here’s a look at how the gradually increasing temperatures could impact your finances.

Energy Bills

According to a recent study of 246 locations in America, 38 percent reported an average of seven more days of “extremely hot” temperatures than in 1970. Another 59 percent reported an increase of three “extremely hot” days. Hotter temperatures can lead to an increased reliability on air conditioning, and that, in turn, means higher energy bills.

Food Costs

Hotter temperatures could lead to crop shortages, and those supply chain disruptions will likely end up impacting your wallet. As farmers work to adapt their strategies, they might need to start charging more for the product.

Insurance Premiums

An increase in extreme weather events, like hurricanes and wildfires, could end up costing you on your insurance policy. The more claims that insurance companies have to cover, the less money they make. The best way for them to cover increasing claims? Make your coverage more expensive.

Health Impact

There’s a chance that the increasingly extreme weather events will end up impacting your health. As US News reports, the more extreme events, the more trips to doctors and hospitals. And like we said, insurance companies are only going to cover so much. Eventually, health insurance and medical bills will increase.

- Chris O'Shea/SavvyMoney