Before diving into this assignment, think through your life situation, now and in your first year after college. How many potential financial emergencies do you face? If you own a car, could it break down? If you are working, could you lose your job? How much would it cost if you had a health emergency, like a broken bone?

Step 1: Save $1,000 in cash Do you have $1,000 in cash? If not, how much will you save per month to save this amount? How many months do you estimate it will take you to have $1K in emergency savings?

Step 2: Expand your emergency fund to eventually cover 3-6 months of expenses What is your goal for your fully funded emergency fund? To determine this amount, estimate your monthly living expenses one year out of college. Then consider your risk tolerance to determine how many months of your expenses you want to save (between 3 and 6 months).

Step 3: Store your savings where you can get it quickly What type of account or financial product will you use to save your emergency fund? Include in your discussion the importance of liquidity and risk in deciding where to store your savings.