Give your cash three jobs: spending, buffer and emergencies: test your skills
Three layers of cash — each with a job — stop small surprises from touching your emergency fund. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Give each cash layer one job
- Size a buffer for small surprises
- Keep the emergency fund at arm’s length
- Practice
1. What is the buffer for?
- Practice
2. Where should the emergency fund sit?
- Practice
3. You used the buffer. What next?
- Key idea
4. Which statement best explains "Purpose prevents misuse"?
- Key idea
5. Which statement best explains "Most surprises are small"?
- Key idea
6. Which statement best explains "Distance protects the emergency fund"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Essentials are $3,100 a month. You want a 4-month emergency fund and a $600 buffer. Total reserves?
Show the answer
$13,000
$3,100 × 4 = $12,400. + $600 = $13,000.
Name your three tiers and write the target for each.
More tests in this bootcamp
- Size your emergency fund for real life
- Is it an emergency? Decide before you spend
- Find room in your budget for an emergency fund
- Give your cash three jobs: spending, buffer and emergencies
- Compare high-yield savings beyond the headline rate
- Rebuild your emergency fund after a setback
- See what inflation does to your cash savings
- Final exam: Emergency fund and savings