Risk in the household

Risk in the Household Illness of the main breadwinner

The Unprepared Household The father who is the main breadwinner for the family, falls sick and cannot do his job of driving a taxi

The Unprepared Household ‘cont.’

To meet medical expenses, the main source of income, the car, is sold as there is no health insurance nor savings

• To cut expenses, the children stay home from school • There is no water or light as the bills cannot be paid • There is no family or community support • The standard of living declines for the family

The Prepared Household The father who is the main breadwinner for the family, falls sick and cannot do his job of driving a taxi

The Prepared Household ‘cont.’

The family has adequate medical insurance so the car does not have to be sold to meet expenses

• The children can still attend school • There is support from family and community members • The family’s standard of living does not have to fall

Conclusion ď‚› Shocks

do occur to households who are prepared or unprepared for them ď‚› However the prepared households can bounce back faster and the effects of the shocks are less impactful than the unprepared households