alleryStart learning →What size of emergency savings fund is enough to cover many unexpected expenses?
A$150 to $250
B$500 to $1,000
C$2,000 to $9,000
D$100 to $300
Answer & Solution
Correct answer: B. $500 to $1,000
1. An emergency savings fund holds money reserved for unexpected costs.
2. A fund of $500 to $1,000 already covers many of those costs.
3. So the target range starts at $500 and runs to $1,000.
4. Smaller ranges fall short of that target, and thousands are not required to start.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Section 3: Saving for Unexpected Expenses_
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