Question

Laura is saving her money in case of an emergency. She currently has enough savings to cover her living expenses for four months. Evaluate Laura's savings.

a.She has saved over the maximum recommended amount and could use some of the money for other funds
b.She has saved less than the minimum recommended amount and could be in trouble if she loses her job or falls ill.
c.She has saved more than the minimum recommended amount, but she could save more.
d.She has saved the maximum recommended amount and should not save any more.

Answer 1

The answer is c. She has saved more than the minimum recommended amount, but she could save more. While having enough savings to cover four months of living expenses is a good start, it is generally recommended to have at least six months' worth of living expenses saved for emergencies. Therefore, Laura could save more to ensure she is fully prepared for any unexpected events.