Most financial experts believe one key to financial security is the establishment of a "safety net." What amount should you keep in this "safety net" or savings account?
A) only the minimum, since this type of account is not FDIC insured
B) 3 to 6 weeks of your salary
C) 3 to 6 months of monthly expenses
D) just enough money to pay next month's bills

Question

Quizplus · Accepted Answer

Financial experts recommend keeping 3 to 6 months of monthly expenses in a savings account as a safety net. This amount can help cover unexpected expenses, such as a job loss or medical emergency, and provide a cushion until other sources of income can be secured. Keeping only the minimum in a savings account is not recommended as it does not provide sufficient protection in case of financial emergencies. Having just enough to pay next month's bills is also not advisable as it leaves no room for unexpected expenses or emergencies.

Most Financial Experts Believe One Key to Financial Security Is