Class Discussion: Why a A Rainy Day Makes Sense

There probably isn’t anything less exciting to do with your money than putting it towards a “rainy day fund.”  Looking back to Principle 5: Stuff Happens, or the Importance of Liquidity, you can understand the importance of making sure that some of your money is
EmergencyFundNov2available to you at any time, or liquid. If liquid funds are not available, an unexpected need, such as job loss or injury, may push you to have to cash in a longer-term investment.

While maintaining a rainy day fund is just common sense, not everyone has one.  In fact, according to a survey by, close to half of those surveyed indicated they are living paycheck to paycheck, and of those in their 30s, 62% were concerned about living paycheck to paycheck.  Moreover, according to a recent FDIC study, nearly half of Americans cannot access $2,000 in 30 days to meet an emergency.

Discussion Questions:

  1. Take a look at the 2012 NetCredit Survey, with today’s economic situation, what are the most common primary financial goals?
  2. Looking at the 2012 NetCredit Survey, where would most people turn to for cash to manage a financial emergency?  Where would you turn to for cash if you needed it for an emergency?  Be prepared to discuss this in class.
  3. Take a look at Your Survival Guide for Tough Times.  On page 6 of the Survial Guide there is a listing of unwise practices to avoid.  Which one of those do you think is most dangerous to your financial health?  Be prepared to discuss this in class.


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