1. Which of the following is not an emergency expense?

Correct Answer: C. Concert tickets

Explanation: Concert tickets, while enjoyable, are considered non-essential. Emergency expenses are unexpected, urgent, and necessary—such as a broken appliance, medical bill, or car trouble. Preparing for these events protects your financial stability and reduces stress during uncertain times.

2. How many months of essential expenses should your emergency savings ideally cover?

Correct Answer: B. Three to six months

Explanation: Financial experts recommend saving three to six months of your essential living expenses. This cushion gives you time to recover from a job loss, illness, or unexpected setback without relying on credit cards or loans.

3. You receive an unexpected $250. What’s the smartest first move?

Correct Answer: C. Add it to your emergency savings

Explanation: Building your emergency fund is one of the most effective ways to increase financial resilience. Putting extra money into savings ensures you’re better prepared for future challenges—planned or unplanned.

4. Emergency savings are meant to help:

Correct Answer: D. All of the above

Explanation: Your emergency fund supports more than just you. It helps cover expenses for your household, dependents, and even pets. If others rely on you, your savings help protect them too.

5. True or False:
Emergency funds are only for people with kids or mortgages.

Correct Answer: False

Explanation: Everyone needs an emergency fund—regardless of age, income, or family size. Life happens to all of us. Whether it’s a job loss, medical emergency, or unexpected repair, having savings set aside offers peace of mind and financial independence.

6. What’s a powerful reason to build your emergency fund today?

Correct Answer: D. All of the above

Explanation: All of these reasons are true. Emergency savings reduce financial anxiety, protect the people who depend on you, and give you the ability to handle life’s unexpected moments with confidence.