A Safety Net (also called an Emergency Fund) is an amount of money that you reserve for emergencies and completely unexpected, necessary expenses (not things that you very suddenly want very badly).
The amount of money you need for your safety net will change depending on your expenses. For adults supporting themselves, you would ideally want at least 3 months of living expenses saved. For teens and young adults who are still somewhat supported financially by parents or caregivers, we think $500 is a great amount to start. We encourage you to increase that to $1000 if you own a car or a pet for which you are responsible.
If you are consistently spending less than you make, you can use the money left over to build up your first Safety Net.
