Saving · Module 1 of 9
The fund that catches you
Build a small emergency fund first, know what really counts as an emergency, and refill it after you use it.
Key terms in The fund that catches you
- Emergency fund
An emergency fund is a cash reserve set aside specifically for unplanned expenses or financial emergencies. Typical triggers include a medical bill, a car repair or a loss of income. Because the money is meant to be available quickly, it is usually kept in an easily accessible account rather than tied up in assets that are hard to sell.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- Needs
Needs are the basic things people must have to survive, such as food, clothing and shelter. Financial education also counts resources required to do a job, such as reliable transportation and the tools of a trade, and resources that protect money and property so future needs can be met. Needs are defined in contrast to wants.
Source: Consumer Financial Protection Bureau, Financial terms glossary
- Wants
Wants are upgrades and other items that would be nice to have but are not necessary for living, earning income or protecting what a person already has. The distinction between wants and needs is a common starting point in financial education, although where a given purchase falls can depend on a person’s job, family and circumstances.
Source: Consumer Financial Protection Bureau, Financial terms glossary
Every term on Lever is in the money glossary.
About this module
The fund that catches you is part of Saving, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Saving
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2
Money with a name on it
Give your savings a job, plan for more than one goal at a time, and work backward from a date to a monthly amount.
9 lessons -
3
So it doesn't depend on a good month
Keep saving even when your income goes up and down, with an honest average and a plan that runs on its own.
5 lessons -
4
Three ways to divide a month
Three popular ways to budget, including 50/30/20 and envelopes, and how to pick the one you’ll actually stick with.
6 lessons -
5
Running a tanda
How savings circles like tandas work, what your turn in line is worth, and what to check before you join one.
8 lessons -
6
Money sent home
The hidden costs of sending money abroad, and how to get more of it to the people who need it.
6 lessons -
7
The money that shows up all at once
Make the most of a bonus or refund: decide what it’s for before it arrives, and when paying off debt is the better move.
5 lessons -
8
When your own money buys less each month
Why money that just sits loses value when prices rise, and the one comparison your bank’s ads never show you.
5 lessons -
9
What the app does with your spare change
How round-up saving apps really work, who is holding your money, and the fee that can wipe out what you saved.
5 lessons
Try this module
It’s part of Saving. Lever will bring it to you when you’re ready, or you can go straight there.