Question

How much should an emergency fund cover?(1 point) Responses one month’s expenses one month’s expenses two months’ expenses two months’ expenses six months’ expenses six months’ expenses twelve months’ expenses twelve months’ expensesHow much should an emergency fund cover?(1 point) Responses one month’s expenses one month’s expenses two months’ expenses two months’ expenses six months’ expenses six months’ expenses twelve months’ expenses twelve months’ expenses

Answer 1

An emergency fund should typically cover three to six months' worth of living expenses. This range provides a financial cushion in case of unexpected events such as job loss or medical emergencies. Therefore, the best response among the options you've provided would be "six months’ expenses."