Emergency Savings

45-minute agenda

1. 0–5 min

   Warm-up

   Post: “Your car needs a $600 repair tomorrow. List three ways you could pay for it. Which is best, and why?”

2. 5–12 min

   Direct instruction

   Present the lesson slides. Make sure students leave with these points:

   • A true emergency is unexpected, necessary, and urgent.
   • Start with a starter goal, then build toward 3–6 months of essential expenses.
   • Keep it safe and reachable — a savings account, not stocks.
   • Plan for predictable costs separately.
   • Refill the fund after you use it.

   Use the “See it” slide (Paying for a $600 car repair) to make the idea visual.

3. 12–17 min

   Worked example

   Walk through “Diego's starter fund” on the slides. Pause before the result and ask students to predict it.

4. 17–22 min

   Live demo

   Project set your emergency fund goal from the slides or the Emergency Fund Calculator. Change one input at a time and have students call out what they think will happen.

5. 22–32 min

   Emergency or Not?

   Format: pairs · 10 minutes

   1. Give pairs ten scenario cards: car repair, concert tickets on sale, cracked phone screen, yearly car registration, ER copay, holiday gifts, job loss, laptop breaks mid-semester, flight for a family emergency, new game release.
   2. Pairs sort each card: true emergency, predictable cost, or want.
   3. Discuss: predictable costs (registration, gifts) need their own savings, not the emergency fund.
   4. Pairs calculate 3- and 6-month goals for someone whose essential expenses are $1,400 a month.

   What to look for: Predictable: registration, holiday gifts. Wants: concert tickets, new game. Most others are true emergencies. Goals: $4,200 (3 months) and $8,400 (6 months).

6. 32–37 min

   Check for understanding

   Use the question slides — or run them as a Four Corners game. Answers:

   1. Which of these is a true emergency-fund expense? — D. A surprise $400 car repair you need to get to work
   2. What's a 3-month emergency fund target? — B. $4,500
   3. It's smart to keep your emergency fund in individual stocks so it can grow faster. — False
7. 37–42 min

   Discussion

   • Why might an emergency fund matter even more for someone with an unpredictable income, like tips or gig work?
   • What's a realistic starter emergency fund for someone your age? Why?
8. 42–45 min

   Exit ticket

   Prompt: What three things make something a true emergency?

   Answer: It's unexpected, necessary, and urgent.