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Rainy Day Readiness:
Building Your Emergency Savings

APEF: Solving the Financial Illiteracy Crisis

Life's a rollercoaster- thrilling highs, unexpected dips, and sometimes, you get soaked by a surprise downpour. When it comes to your finances, being caught in a financial rainstorm isn't fun- that's where your emergency savings fund comes in! Think of it as your umbrella, helping you weather the storm until it passes. You may have yet to encounter many financial challenges, but establishing the habit of saving for unforeseen circumstances is an essential skill.


So, what exactly is an emergency savings fund?

It's a stash of money you set aside specifically for those unexpected bumps in the road – a car repair, a medical bill, or even a broken phone ( you’re kicking yourself for not getting that protection plan!) It's not for everyday expenses but for keeping you dry during a financial storm- that’s why some call it a “rainy day fund.”

Why is it important?

Even a small, unexpected expense can become a financial tsunami without an emergency fund. You might have to rely on high-interest loans, credit cards, or even dip into your future goals (that dream car fund!) to stay afloat. 

How much should you save?

Experts recommend aiming for 3-6 months of living expenses in your emergency fund. Think rent, groceries, utilities – all the essentials to keep your life running smoothly. Start small; even $20 a week adds up! Consistency is key- regular contributions help build the habit of saving.

Where do you keep it?

A separate savings account is your best bet. Look for one with high-interest rates and easy access so you can tap into your fund when needed…but not be tempted to use it for everyday purchases. 


  • Building an emergency fund takes time and discipline. Don't get discouraged if it doesn't grow overnight. Celebrate every milestone, even small deposits!

  • Review your goals and adjust your fund as your expenses change. Adding a new expense, like a car payment, to the budget might necessitate an increase in your emergency fund.

  • Talk to your parents, guardians, or teachers for advice and support. They can each probably give examples of when they needed to dip into their emergency savings- or when they were in a tight spot because they didn’t have any.


Emergency savings are a cornerstone of financial resilience and independence. You may have yet to face many money challenges, but developing the habit of saving for emergencies will prepare you for a future where financial stability is grounded in proactive planning. By understanding the importance of emergency savings, setting realistic goals, and consistently contributing to your fund, you’ll never have to fear a financial downpour.


Bonus Tip: Some apps and online tools can help you automate your savings, making it easier to build your emergency fund without thinking about it. Technology can be your financial sidekick; take advantage of it!

Soft skills refer to a set of personal attributes, behaviors, and social attitudes that enable individuals to interact effectively with others in a workplace or social environment. These skills are essential for building healthy relationships, communicating effectively, solving problems, and collaborating with others.

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