Question

Which of the following is the best way to prepare for a financial emergency?

depositing a percentage of your paycheck into an interest-bearing savings account each month

using credit cards so that you can save your paycheck

donating a percentage of your paycheck to your favorite charity each month

investing a percentage of your paycheck in the stock market each month

Answer 1

A

Step-by-step explanation:

Should be A as your savings account will accrue interest and the stock market is volatile.

Answer 2

The correct answer is letter "A": depositing a percentage of your paycheck into an interest-bearing savings account each month.

Step-by-step explanation:

It is recommended that individuals save at least 20% of their paychecks. Those funds can be useful in front of financial hardship which could include changes in the overall economy or a massive lay-off at work. That money could be saved in a bank so that the individual takes advantage of the interest rates the bank offers for keeping the money saved. In such a way, the amount of money will be increasing slowly but safely. Bank accounts in the U.S. are covered by the Federal Deposit Insurance Corporation (FDIC).