Emergency Fund

An account that is used to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund is to improve financial security by creating a safety net of funds that can be used to meet emergency expenses as well as reduce the need to use high interest debt, such as credit cards, as a last resort.

Most financial planners suggest that an emergency fund contain enough money to cover at least three months of living expenses. Note that financial institutions do not carry accounts labeled as emergency funds; it is up to the individual to set up this type of account.

Most emergency funds are highly liquid, such as checking or savings accounts. This allows quick access to funds, which is vital in emergency situations.

Investment dictionary. . 2012.

Look at other dictionaries:

  • emergency fund — A fund of an insurance company or mutual benefit society provided for use in the event of the occurrence of losses in excess of common experience …   Ballentine's law dictionary

  • emergency fund — A reserve of cash kept available to meet the costs of any unexpected financial emergencies. Bloomberg Financial Dictionary …   Financial and business terms

  • Ebenezer Emergency Fund — Der Ebenezer Emergency Fund ist eine von Gustav Scheller (†  18. Februar 2000) 1991 in England gegründete evangelikale Organisation, die auf Basis von biblischer Prophetie ihren Auftrag darin sieht, den Juden in der Diaspora die Möglichkeit… …   Deutsch Wikipedia

  • United Nations International Children's Emergency Fund — Unicef Fonds des Nations unies pour l enfance Organe de l ONU Type d organisation Fonds de l ONU Acronymes UNICEF Chef Directrice exécutive …   Wikipédia en Français

  • United Nations International Children's Emergency Fund — noun an agency of the United Nations responsible for programs to aid education and the health of children and mothers in developing countries • Syn: ↑United Nations Children s Fund, ↑UNICEF • Hypernyms: ↑United Nations agency, ↑UN agency …   Useful english dictionary

  • fund — /fund/, n. 1. a supply of money or pecuniary resources, as for some purpose: a fund for his education; a retirement fund. 2. supply; stock: a fund of knowledge; a fund of jewels. 3. funds, money immediately available; pecuniary resources: to be… …   Universalium

  • fund — A fiscal and accounting entity with a self balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and charges therein, are recorded and segregated to carry on specific… …   Financial and business terms

  • emergency — Any occurrence or circumstance listed below which, in the opinion of the Exchange, requires immediate action and threatens or may threaten such things as the fair and orderly trading in, or the liquidation of, or delivery pursuant to, any… …   Financial and business terms

  • Fund — A source of money that will be allocated to a specific purpose. A fund can be established for any purpose whatsoever, whether it is a city government setting aside money to build a new civic center, a college setting aside money to award a… …   Investment dictionary

  • Fund — (as used in expressions) United Nations Children s Fund United Nations International Children s Emergency Fund World Wildlife Fund …   Enciclopedia Universal

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