Question

Scenario 1

Aiden's car is 12 years old and he's worried it might break down, so he's trying
to save three months of expenses for unexpected repairs, while also saving for
a new car. What are the best savings strategies for Aiden so he can keep his
money accessible for repairs, but also save for a new car?

Answer 1

Aiden can open a savings account that does not have restriction on withdrawals and does not have minimum balance requirement

Step-by-step explanation:

Aiden is trying

to save three months of expenses for unexpected repairs, while also saving for

a new car.

This will require frequent withdrawals for unexpected repairs on his old car. Also he will need to make frequent deposits into the account as he is saving for a new car.

The best account option for Aiden will be to get a savings account that will allow him withdraw as much as possible for repairs and also he will not be charged because of frequency of withdrawals