ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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fixing a blown tire on your car that you use to get to work.
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repairing your laptop that you use for homework.
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a last-minute school trip.
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a sudden health issue that needs care.
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Detailed explanation-1: -An emergency fund is a separate savings or bank account used to cover or offset the expense of an unforeseen situation. It shouldn’t be considered a nest egg or calculated as part of a long-term savings plan for college tuition, a new car, or a vacation.
Detailed explanation-2: -Q. Which of the following is NOT true about emergency funds? They are used for anything listed on the budget.
Detailed explanation-3: -Some common examples include car repairs, home repairs, medical bills, or a loss of income. In general, emergency savings can be used for large or small unplanned bills or payments that are not part of your routine monthly expenses and spending.
Detailed explanation-4: -What is NOT true about unexpected expenses? They do not occur if you have a budget.