Saving and Spending
Your First Emergency Fund
Create a realistic buffer for unexpected costs.
4 minutesBeginnerReviewed July 23, 2026Lesson 7 of 15
An emergency fund is money reserved for an unexpected necessary expense. It is different from saving for a planned purchase.
Start realistically
A teenager may begin with $100, $250 or enough to cover personal responsibilities.
Examples include replacing a transportation card, paying an unexpected school cost or repairing something essential.
A planned purchase or subscription is not an emergency.
Keep it separate
Emergency savings should be available when needed but separate from daily spending.
Rebuild it after using it.
Try this
- 1Choose a starting target you can realistically reach.
- 2List three situations where you would use it.
- 3List three situations where you would not.
Check your understanding
3 questions
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