Coronavirus & Your Finances: What to Know and Do

Coronavirus: Prepare Financially With These Steps

Money expert Clark Howard is taking the coronavirus seriously — and he says you should be, too.

This article is going to cover what you need to know about the effects of the virus when it comes to the stock market, travel, looking out for scams and protecting your overall financial well-being.

Table of Contents

• Stock Market
• Travel
• Scams
• Financial Preparedness

Stock Market

If you’re an investor, you’re likely watching the markets very closely. You may be understandably concerned about the way things have been going. But Clark says it’s important to have some perspective about the volatility.

“Until the dust clears from coronavirus, the market’s going to be bumpy,” he says. “As long as you are invested for the right reasons — saving for the long term — and your money is diversified as it should be, appropriate to your age, you will be fine,” he says.

Here’s what Clark recommends:

“Just ignore the headlines and hang in there. Markets — even after a painful decline — eventually recover.”

The good thing about all of this is that the younger you are and the bigger decline in the market, the more money you can potentially make down the road.

“That’s because you’re buying everything on sale,” he says.

Travel

Your travel plans may feel like they’re in flux right now, but that does not mean you can’t have a plan of action.

Let’s talk about what to do if you already have airline travel or a cruise booked, then discuss the considerations if you’re in the process of planning a trip for a later date.

If You Already Have a Trip Planned

If you already have a trip booked, Clark says it’s important that you assess your particular needs and how you feel about travel right now. Here’s Clark’s overall advice on travel you’ve already booked:

“You need to make your own decision now that rebooking policies have become more favorable from most travel suppliers. And that means making your own decision in terms of your health and how you feel about traveling. Traveling is about fun and getting away from it all, but if you’re going to feel a wall of worry, don’t go right now.”

Air

As far as air travel goes, Clark says the airlines are reacting to coronavirus differently. As a result, the rules are complicated right now and are subject to change quickly. “The airlines keep changing their policies and rolling the dates forward,” he says.

That’s why Clark says you may want to hold on to your tickets, but only if you feel comfortable with air travel right now.

If the situation gets worse, the airlines may end up suspending your flight, which will likely trigger a full refund.

For peace of mind, here’s what you should do: Reach out to your airline to get their specific policy as it relates to your ticket so you make an informed decision.

Below you’ll find links to major airlines’ ticket change policies, including fees, and their customer service phone numbers:

• American Airlines: 1-800-433-7300
• Delta Air Lines: 1-800-455-2720
• United Airlines: 1-800-864-8331
• Southwest Airlines: 1 800-435-9792

Cruises

The cruise lines are giving travelers a lot more options than the airlines, Clark says.

“Because every cruise is completely optional, the cruise lines have been much more flexible.”

Some major cruise lines like Royal Caribbean are letting you cancel up to 48 hours before you sail or get a future cruise credit valid for up to a year.

Clark says, again, you need to understand the policy of the specific cruise line you’re booked with in order to make an informed decision about whether to cancel or not.

We should note that as of right now the Centers for Disease Control and Prevention (CDC) recommends deferring cruise travel to a later date, especially for those with underlying health issues.

Below you’ll find helpful links to major cruise lines’ change/refund policies and their customer service phone numbers:

• Carnival: 1-800-764-7419
• Royal Caribbean: 1-800-256-6649
• Norwegian: 1-866-234-7350
• Princess: 1-800-774-6237

When you do call either the airlines or the cruise lines, Clark has some advice on improving your chances for getting a refund or other accommodations:

• Never call on the weekend: You’re more likely to get a contracted call center worker who may not know all of the company’s policies.
• Never call at night: You’ll typically get low-seniority employees who may not be able to make special arrangements for you.

“And if you’re told ‘No’ the first time, you just call back again,” Clark says.

If You Are in the Process of Planning a Trip

If you haven’t booked yet but are in the process, Clark says now’s the time to compare the different policies of the travel providers to make a decision about air travel and cruises based on your comfort level.

Air

If you do decide to fly, Clark recommends that you book Southwest Airlines because they have a no-fee change policy, which is the most flexible in the airline industry.

Clark says he’s in the process of booking travel right now. Here’s how he’s going about it:

“I’ve been looking at the calendar,” he says. “I’m going to buy a number of the deals that are appearing depending on what the policies are when I book and if the policy is liberal enough.”

Here’s what Clark recommends you do if you are also interested in booking air travel right now:

• Print out the change and cancellation policy when you book the ticket: Get a hard copy so that later on, if you decide it’s not a good time to go or if the airline has amnesia about what the policies were at the time that you booked, you’ll have proof.
• Take a picture of it: Clark says having a photo on your phone will help time-stamp the information, as well.

“I want to make sure my money is protected if later it doesn’t make sense that I go [on the trip],” he says.

If you see deals that you like but can’t get the protection you want from the carrier’s policy, consider buying travel insurance with a cancel for any reason policy. Note: A cancel for any reason policy is typically only available if it’s purchased within between 10 and 21 days of the first payment on your travel arrangements.

Cruises

If  you’re thinking about booking a cruise but haven’t paid yet, Clark wants you to take the CDC’s advice to heart and postpone that travel.

This is especially prudent for older travelers with underlying health issues.

Hotels

Clark says hotel rates are going to be pretty variable right now. Here’s what he suggests:

“This is more important than it normally is: Book a refundable room early and keep watching the prices,” Clark says.

Clark says this will allow you some flexibility if prices go down later.

Scams

Clark says you also want to be aware of coronavirus scams, which the Federal Trade Commission says are on the rise. Here are two particular schemes criminals are using to trick people:

• Phony emails: Scammers are circulating bogus emails claiming that companies have developed cures or treatments for coronavirus. In some cases, they are asking you to invest in these “magic” cures.

Clark says now’s the time to “be very wary of anybody who contacts you and says they have an incredible opportunity for you to score money.”

• Fake charities: Crooks are contacting people and soliciting them to provide “relief” to coronavirus victims

“Only give to organizations that you know,” Clark says. If you are familiar with the work a group actually does, this will help you to avoid scams.

Financial Preparedness

When it comes to your overall financial preparedness, Clark says these are the most important things to do right now because of the uncertainties involved:

• Reduce your discretionary spending: It’s time to cut out the spending that you do without thinking. Look at your various subscriptions. Scrutinize your bank statements.
• Aggressively pay down debt: Get serious about your bottom line. Make a plan to attack your debt.
• Avoid making large purchases with credit, if possible: If you can hold off, now’s not the time to put yourself further into debt.

Now is the time to take action to protect yourself from the potential financial impacts of coronavirus — but you don’t need to panic. Keeping a calm head in stressful situations is the key to making good decisions.

If you have questions about coronavirus and money, contact Clark’s Consumer Action Center — a FREE helpline open Monday-Thursday from 10 a.m.–7 p.m. ET and Friday from 10 a.m –4 p.m. ET with volunteers available to answer YOUR concerns! Call Team Clark at 404-892-8227.