Final answer:
Everyone's financial goals can be affected by unexpected life events, especially those without a safety net. These events can cause economic risks like a fall in income, necessitating the use of savings or taking on debt. Preparing an emergency fund and getting insurance can help mitigate such effects.
Step-by-step explanation:
Whose financial goals are most likely to be affected by an unexpected life event? This is a question that crosses into the fields of economics and personal finance, and the straightforward answer is that everyone's financial goals can be impacted by unexpected life events, but those without a financial safety net or insurance are typically more vulnerable.
Life is unpredictable, and unexpected occurrences such as natural disasters, massive unemployment, medical emergencies, or family needs can pose economic risks over which individuals have very little control. These events can lead to a fall in income, forcing individuals to use their savings or take on debt to cover the sudden expenses. Major life events, including sending children to college or facing retirement, can also create significant financial stress.
It is important to plan for contingencies by building an emergency fund, typically recommended to cover three to six months of expenses, and investing in appropriate insurance policies. This kind of preparation helps to mitigate the effects of a rise in taxes, fall in future expected income, or any other financial setbacks that could arise unexpectedly.