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Banking

Best Savings Accounts for Kids

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Piggy banks are fun for small change, but if you want to teach your kids important lessons about managing money and the power of compound interest, get them their own savings account. While your local bank branch probably offers more than one savings account product, you might consider looking online for one that’s designed with children in mind.

To aid in your search, we have chosen six savings accounts tailored for kids from a selection of nearly 100 kids’ savings options offered at banks and credit unions around the country. We based our selections on how well they met these five criteria:

  • Competitive annual percentage yield (APY): Accounts should demonstrate the rewards you can get by saving your money, and a competitive interest rate helps achieve that objective.
  • Low fees: Kids don’t need to lose their money to fees, so finding an account with zero fees was important.
  • Low minimum deposits: Most kids don’t have a large amount of money to save when they first open an account. Having a low minimum deposit requirement can help them get started quicker.
  • Broad geographical reach: Banks and credit unions need to be available to a large geographic market, with extra points for physical locations where kids can go and deposit cash and coins.
  • Great educational tools: Savings accounts that are geared to kids should have some educational tools to help them learn about what it takes to achieve financial success. Bonus points if the tools are fun, too.

 

Best overall savings account for kids: Capital One

Kids Savings Account from Capital One Capital One’s Kids Savings Account has all of the features you’d expect to see in a savings account for adults but with the additional feature of parental controls, which makes it a great overall solution for kids of all ages. The account earns 0.50% APY, has no monthly fees and can be opened with $0. You can set it up the account, and make your initial deposit at a later date.

The Kids Savings Account parental controls allows parents to sign into the account under their own usernames and passwords to help their children manage their funds. Parents always control transfers in and out of the account, offering good balance between independence for the young holder and parental oversight. Kids get to view their balance and watch their money grow.

Capital One lets you create an automatic savings plan linked with other accounts, so you can automatically transfer your child’s allowance into their Kids Savings Account. When it comes to geographical reach, Capital One has approximately 500 branch locations, as well as a great mobile banking app, which allows you to deposit checks and check balances.

Capital One Kids Savings Account
APY: 0.50%
Monthly Fees: $0
Minimum Opening Balance: $0

SEE DETAILS Secured

on Capital One’s secure website

Member FDIC

Best savings account for college savings: Citizens Bank

CollegeSaver from Citizens Bank (RI) If you want to be rewarded for consistent savings, the Citizens Bank CollegeSaver account has a bonus you might consider. If you open the account before your child is six and make a deposit of at least $25 each month until your child turns 18, Citizens Bank will give you a $1,000 bonus (the current account APY is a low 0.05%). You can also open this account if your child is between 6 and 12 years of age, but the minimum monthly deposit will be $50 and opening deposit is $500.

If you were to open the account today with an initial deposit of $25 upon the birth of a child (and assume the current APY held for 18 years), and then deposit $25 a month for 18 years, your $5,400 investment would accrue $24.48 in interest. Add the bonus and you’ll end up with $6,449.48. The bank doesn’t put any stipulations on how the money can be spent, so you can use the balance for college or any other financial needs.

Citizens Bank CollegeSaver
APY: 0.05%
Monthly Fees: $0
Minimum Opening Balance: $25 for children under six years old; $500 for children age six to 12

SEE DETAILS Secured

on Citizens Bank (RI)’s secure website

Member FDIC

Best savings account for a young child: PNC Bank

S is for Savings from PNC Bank If you want to engage your child with educational tools, PNC’s S is for Savings account offers a lot. Granted, this account offers the lowest APY of the banks that made this list, but it makes up for it with its interactive online banking experience.

The Learning Center features Sesame Street characters that will help them learn basic money concepts. The site has fun activities you and your child can do together.

Features include the ability to set up automatic savings deposits that help them see the benefits of having a savings routine. Kids can work towards goals and learn about the three components of money: saving, sharing and spending. As your child gets older, you may choose to transfer their accumulated balance to a savings account at a bank that offers a higher interest rate.

PNC Bank’s S is for Savings
APY: 0.01%
Monthly Fees: $0 for account holders under 18
Minimum Opening Balance: $25

SEE DETAILS 

Member FDIC

Best savings account for teens: Alliant Credit Union

Kids Savings Account from Alliant Credit Union When your child turns 13, Alliant Credit Union considers them to be a young adult, offering their High-Rate Savings Account with a 1.35% APY and no monthly fees. For teens who want to set savings goals, the credit union allows them to set up supplemental accounts that can be earmarked for specific items, such as saving for a new car.

What makes this a great option for a teen is that Alliant also offers an interest-paying teen checking account for kids ages 13-17. The checking account earns an APY of 0.25%. The two accounts can be linked and both will earn your teen interest. Alliant also refunds up to $20 per month in ATM fees if the teen uses out-of-network machines.

To open an account at Alliant Credit Union, you must be a member. Membership is open to employees or former employees of partner businesses or organizations. Or you can join by making a $10 donation to the Foster Care to Success Foundation.

Alliant Credit Union High-Rate Savings:
APY: 1.35%
Monthly Fees: $0
Minimum Opening Balance: $5

SEE DETAILS Secured

on Alliant Credit Union’s secure website

NCUA Insured

Best APY for a kid’s savings account: Spectrum Credit Union

MySavings from Spectrum Credit Union Spectrum Credit Union currently offers the highest interest rate on the market for a kid’s savings account, but only on a relatively limited balance. Spectrum’s MySavings account earns 7.00% APY on account balances up to $1,000, making for a rate that’s higher than many CDs. Balances over $1,000 earn the regular savings rate, which is 0.50%. A high interest rate can help get kids excited about savings as their balance will grow quicker.

Spectrum Credit Union currently has branches in six states, but deposits can be made nationwide through the Credit Union CO-OP Shared Network. Membership is open to anyone by joining the Contra Costa County Historical Society ($15 membership fee) or the Navy League of the United States ($25 annual membership fee).

Spectrum Credit Union MySavings
APY: 7.00% for the first $1,000; 0.50% on balances above $1,000
Monthly Fees: $0 for account holders under 18
Minimum Opening Balance: $0

SEE DETAILS Secured

on Spectrum Credit Union’s secure website

NCUA Insured

Best online tools for a kid’s savings account: Capital One

Kids Savings Account from Capital One Kids are digital natives, and that makes a kid’s savings account’s online banking features extra important. In addition to being our pick for best overall savings account for kids, the Capital One Kids Savings Account offers a great selection of online saving and budgeting tools that will keep kids engaged and informed.

One of the best features is the ability to create additional savings accounts and set a target goal for each account. For example, you child may set a goal for holiday gifts, another goal for a new bike or car and another goal for vacation money. They can even give each account a nickname, such as “My Wheels Fund.”

Capital One has a full suite of online tools for your child to track their progress and success, helping to keep them focused on their goals. Capital One also offers standard features on its mobile banking app, some of which are available for kids, including the ability to check their balance or make a mobile deposit.

Capital One Kids Savings Account
APY: 0.50%
Monthly Fees: $0
Minimum Balance: $0

SEE DETAILS Secured

on Capital One’s secure website

Member FDIC

Why your kid should have a savings account

It’s never too early to start teaching your kids about money, and a savings account is a great tool to help accomplish this aim. According to the 9th Annual Parents, Kids & Money Survey by T. Rowe Price, 55% of parents said their child has a savings account, but just 23% of kids said that they talk to their parents frequently about money. Parents who discuss financial topics with their kids at least once a week are more likely to have kids who say they are smart about money than than those who do not have a discussion with their children.

Savings accounts show kids the value of saving at an early age. They get to watch their money grow as compound interest work its magic, and they can set short- and long-term goals for the money they save. The reward of achieving the goals will teach life lessons on patience and planning. Once you open an account for your kids, share money management tips with them, things like “paying yourself first” by saving a portion of gifts and allowances they receive instead of spending it all.

When you teach your child good money habits early on, you help set them up for success later in life. Putting your child on the path for financial responsibility and independence by choosing the best savings account for kids could be the greatest gift you can give them.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Banking

Checking vs. Savings Account: What’s the Difference?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

A checking account and a savings account are both essential for managing your personal finances. Checking accounts are for day-to-day spending, while savings accounts are for stashing money for the future and earning interest. Understanding the difference between them will help you better manage your money and meet your financial goals.

Checking vs. savings account: Basic features

Checking accounts are where you keep money intended to meet your everyday spending needs. In times past, you would access money in your checking account using paper checks, and balance your budget in a checkbook. Checks are still around, but today most people use debit cards and mobile apps to access and manage money in checking accounts.

There’s generally no limit to transactions, and checking accounts generally earn low or no interest, with the average account earning 0.06% APY.

Savings accounts are intended for saving for the future or for creating an emergency fund. While rates vary, the average account earns 0.09% APY. Savings accounts offer minimal access to your funds due to Regulation D, a rule put into place by the Federal Reserve that mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle.

Both checking and savings accounts can be protected by the Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA). The FDIC and NCUA insure bank accounts up to the legal limit per depositor, guaranteeing the safety of your money in case the bank or credit union fail.

Checking AccountsSavings Accounts
Main purpose
Routine deposits and withdrawals, used to meet day-to-day cash needsTo save money for the future and earn interest on the balance, minimal access
Withdrawal limits
Unlimited withdrawals*6 convenient withdrawals per month
Interest earned
Average APY of 0.06% as of February 2020 — much higher rates are available if you shop around. Average APY of 0.09% as of February 2020 — much higher rates are available if you shop around.
Minimum balance requirements
Generally zero, but some accounts may require a minimum balance to avoid feesFrom $100 to as much as $2,500. A few accounts can require much more.
Common features
  • High liquidity: Unlimited withdrawals
  • Lower interest rates
  • Debit cards and checks
  • Low liquidity: Limited withdrawals
  • Higher interest rates
  • Some offer debit cards and checks
Fees
There may be fees for monthly maintenance, overdrafts, paper statements, inactivity, returned items, card replacements, account closure, international withdrawals, third-party ATM withdrawalsSeldom charge fees, although some accounts will charge you if you fall below a required minimum balance

*Check the terms & conditions of your account for any limitations the financial institution may impose.

Checking account features

Checking accounts are designed to be convenient for everyday access, via checks, debit cards, mobile apps and online transfers. You can deposit or withdraw money at a branch office or through an ATM, although some checking accounts put a cap on the amount you can withdraw each day. Writing checks or making purchases with a debit card very seldom has daily limits.

Some checking accounts charge monthly maintenance fees, but they are easily waived if you maintain a minimum balance or set up recurring direct deposits. Other fees that can be charged are for holder actions, such as overdrafting the account, requesting paper statements, using a third-party ATM, requesting debit card replacement or closing an account shortly after opening it. By being diligent with your usage, you can avoid checking account fees.

While banks don’t generally pay much in the way of interest on checking accounts, you can find interest-bearing accounts that pay as much as 4.00% APY if certain requirements are met.

Checking account features may include:

  • Easy access
  • ATM/debit cards and checks
  • Online banking and mobile apps
  • FDIC insurance
  • Earns some interest
  • Online bill payments
  • Bonuses and rewards
  • Overdraft protection

Savings account features

A savings account is intended to be a place to build wealth or save for your financial goal over time, while still offering a degree of liquidity. Because withdrawals are limited in many cases, savings accounts are meant to hold money you don’t need easy access to.

Savings accounts have fewer fees than checking accounts, and they generally earn a higher rate of interest. Rates on accounts can fluctuate depending on various factors, such as when the government adjusts the federal funds rate. And the rates offered vary greatly among accounts, so it’s important to shop around to find the best deal.

In addition to traditional savings accounts, you can open a variety of other accounts that work similarly to savings accounts. These include online savings accounts, money market accounts, certificates of deposit, health savings accounts (HSAs) and flexible spending accounts (FSAs), college savings accounts and a variety of retirement accounts. Due to their focused purposes, some of these account types have limited uses or availability.

You can move money in and out of your savings account through direct deposits and withdrawals, or transfers between deposit accounts, which is done via Automated Clearing House (ACH). ACH transfers generally take one to two business days to clear.

Savings accounts can offer several features:

  • Higher interest rates, in many cases
  • Low to no fees
  • Debit cards and checks, in some cases
  • Online banking and mobile apps
  • FDIC and NCUA insurance
  • Automated transfers from other accounts

How Fed Regulation D affects your savings account

The Federal Reserve’s Regulation D limits the number of transfers and withdrawals you can make in certain types of accounts. The rule has its roots during the Great Depression era to set monetary policy. Currently banks must maintain in reserve 3% of their total liabilities over $16.9 million and 10% of total liabilities over $127.5 million.

For savings accounts, Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. If you exceed the transaction limit, the bank may charge you a fee, deny future transactions, convert it to a checking account or even close your account.

However, the rule applies only to certain transactions, such as:

  • Automated, pre-authorized transfers, such as overdraft protection or automated bill payments
  • Online account transfers
  • Phone transfers or withdrawals
  • Debit card transactions

You can avoid getting into trouble with Regulation D by accessing your money with transactions that are not limited, such as:

  • Withdrawals made in person at a local branch or ATM
  • Withdrawal requests made by mail
  • Withdrawal requests made by phone with funds mailed to the depositor instead of being directly disbursed

Checking vs. savings account: How to choose

Selecting a checking or savings account depends on your individual goals and objectives. In most cases, it’s necessary to have both types of accounts. For minimal interest but convenience and frequent access to cash, a checking account is the way to go. Savings accounts are better suited for saving over the long term.

Having both types of accounts can be quite complementary to paying everyday expenses and also keeping an emergency fund or meeting long-term savings goals. Sometimes, banks will waive a monthly fee if you link your checking and savings account. The drawback to this is that you might not find the best checking and the best savings account interest rates and terms by using the same bank.

In short, it’s best to do your homework and shop around for the checking account versus savings account with the best interest rates and lowest bank fees. There’s no one-size-fits-all solution, so it pays to find the combination that best suits your objectives and lifestyle.

Find savings and checking accounts with high APYs

Rates vary so it’s important that you shop around for the highest APYs. Here are some of your options.

Top checking accounts in January 2020 with no minimum balance

Financial InstitutionAPY
Empower1.60%
Axos BankUp to 1.25%
Aspiration0.25%
nbkc bank0.75%
Ally Bank0.50%

Top savings accounts in January 2020

Financial InstitutionAPYMinimum Balance
Blue Federal Credit Union5.00%$25
CommunityWide FCU1.80%$1
Synchrony Bank1.50%$0
Goldman Sachs Bank USA1.70%$0
Barclays1.50%$0

Avoid checking or savings accounts with fees

When shopping around for a bank or credit union for your checking or savings account, make sure to review the fine print to look for fees. If the financial institution charges a maintenance fee, keep shopping. Never pay fees, there are simply too many good options that won’t charge you to hold and access your money.

Do I need checking and savings accounts at the same bank?

The simple answer is no, but there are reasons for and against the practice. Having your checking and savings accounts at the same bank can simplify money management by putting your balances within the same online banking dashboard or statement. You can also usually transfer money between accounts instantly.

However, you may not find your best options within the same financial institution. For example, the checking and savings accounts currently paying the highest interest rates are not from the same bank. If you want to maximize the interest or features you want, you may need to open accounts at different banks or credit unions. The extra steps may pay off in higher earnings.

Do I need multiple savings accounts?

If you have more than $250,000 in savings, the answer is yes. The FDIC and NCUA insure deposit accounts at a given institution up to the legal limit in a given ownership category, such as a checking, savings or retirement account. If you have more than $250,000, you might want to distribute your money between banks or ownership categories for full protection.

What about cash management accounts?

If having separate checking and savings accounts proves to be too much work, you can consider a cash management account, which can be the best of both worlds. A cash management account combines the high interest rates of a savings account or certificate of deposit with the accessibility of a checking account. These hybrid accounts are offered by online-only banks or institutions. Wealthfront currently pays a 0.26% APY on its cash account with unlimited transactions and no minimum balance.

Whether you choose a checking, savings, cash management account or combination, make sure you shop around for the best rates and understand the terms and requirements. The purpose of a bank account is to keep your money safe while you build wealth. And your account should be furthering your goal instead of depleting it.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Strategies to Save

Why Do You Need an Emergency Fund?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Building an emergency fund needs to be one of your core personal finance goals. Unemployment, serious medical problems, divorce and other unexpected life emergencies can all crop up at the worst possible times — and when they do, you’ll be ready for them if you have a well-stocked emergency fund. In this guide, we’ll explain how to build an emergency fund, how much you need in your fund, where to keep it, and when to use it.

What is an emergency fund?

An emergency fund is a sum of money that you set aside to pay for serious, unexpected financial emergencies. Your emergency fund helps you avoid relying on expensive forms of debt, like personal loans or credit cards. While you can’t always anticipate the unexpected, you can prepare by having an emergency fund ready to go.

An emergency fund should be reserved for major, unplanned situations that could disrupt your life. The costs incurred in these situations stem from serious, longer-term events. Some common scenarios could include:

  • Large, unexpected medical bills from chronic illness
  • Major car repairs or medical expenses after an accident
  • Paying for living expenses in the event of job loss or divorce
  • A major unplanned emergency home repair

Note that an emergency fund is different from a rainy day fund. A rainy day fund is meant to handle smaller one-off expenses that are somewhat predictable, such as routine home maintenance, broken appliances, last-minute travel expenses or the like. You would expect to be paying expenses out of a rainy-day fund with a certain regularity, several times a year.

Your emergency fund needs to be something you hope you never have to use. Think of an emergency fund as more of an insurance policy than a supplement to your regular budget.

How much should I save in my emergency fund?

Deciding how much you should save for an emergency fund isn’t a one-size-fits-all answer. A good rule of thumb, however, is to cover your financial needs for a set amount of time based on your income and living expenses. The amount that’s best for you will depend on your individual circumstances.

For example, a single-income family of four will likely have different financial needs than a dual-income family of two, as would a person with a full-time job and someone who’s self-employed. Consider these different months-of-income size funds.

3-month emergency fund

If you are single and have a steady job, saving three months worth of your income can work well. You only have yourself to worry about, so it’s only your living expenses that will need to be covered, rather than those of a spouse or children. This size fund can also work for a dual-income family that can rely on a single income in case one person suffers a job loss.

6-month emergency fund

Those who have a spouse and children will likely need to save more money than those who are independent. Six months should cover the costs for those who are married with a stable income and have young children living with them, especially if the household has a single earner. This size fund is also recommended if someone in the family has a chronic medical condition that can incur frequent visits to the doctor or hospital.

9-month emergency fund

Anyone who is self-employed or has infrequent income, such as a freelancer or commission-only salesperson, can benefit by saving more than those who have a stable income — nine months is a good go-to target. This way you’re able to pay for any unexpected emergency as well as the loss of a client or project or a lull in income.

How to build an emergency fund

Whether your account should hold three months worth of expenses or more, saving money for an emergency fund can seem daunting, especially when you are first starting out. Just like any form of saving, though, you can use a few easy strategies to help build your momentum and your balance.

  1. Make your emergency fund a priority: Most people have more than one financial goal, but it’s important to treat building your emergency fund as your first priority. Start saving immediately, and set aside working toward your other financial goals until after you’ve reached your target emergency fund amount.
  2. Pay down debt: One exception to the rule above is if you have a high debt load — if so, make a goal of paying it off as fast as possible. It can be difficult to find extra money save when you have a sky-high credit card bill every month. Think of debt payments as a form of savings — you’re saving all of that interest by paying it off quickly.
  3. Review your budget: Get some traction on building your emergency fund by reviewing your budget and cutting discretionary expenses, such as dining out or buying new clothes. If you aren’t doing so already, consider using the 50/30/20 rule to grow your savings. Reserve 50% of your after-tax income for needs, 30% for wants and 20% for saving. Sticking to this formula can keep you on track to build your emergency fund rapidly.
  4. Find extra money: Expecting a bonus or a tax refund? Put it directly into your emergency fund instead of spending it elsewhere. Perhaps you’ve got items around the house that you no longer use and can sell? Having a lump sum can make a big impact on your balance, freeing up cash from your paycheck for other financial goals.
  5. Automate your savings: Set aside the same amount every month in your emergency fund. Make it easy by scheduling automatic transfers to savings from your paycheck. The online bank Chime offers a program that automatically transfers a percentage of each paycheck that you define into a seperate Chime savings account for you.

Where should I keep my emergency fund?

There are three key factors to keep in mind when choosing an account in which to keep your emergency fund: liquidity, yield and security. Liquidity means ease of access to your money: you should be able to get cash out of your emergency fund on very short notice. To maximize growth of the money you have saved, you’ll want a competitive interest rate on the account. And security means there’s little chance you’ll lose any money on your investment.

Taking liquidity and yield into account means that some accounts are better choices than others to hold your emergency fund. When it comes to security, it’s best to consider deposit accounts insured by the Federal Deposit Insurance Corporation (FDIC) up to the legal limit. Let’s take a look at four deposit account options: cash management accounts, savings accounts, money market accounts and certificates of deposit (CDs).

Save your emergency fund in a cash management account

Cash management accounts typically combine the higher yielding interest rates of some savings accounts and CDs with the convenient liquidity of a checking account. This makes them an ideal account type for your emergency fund.

Keep your emergency fund in a savings or money market account

The best high-yield savings accounts pay a high rate of interest, making them a good place to keep an emergency fund. Money market accounts are a type of savings account that offers attractive interest rates, but typically require a relatively high minimum balance to earn interest. It’s not hard to find money market accounts and saving accounts that come with debit cards and even checks, providing better access to your emergency fund. One thing to be aware of: the Federal Reserve’s Regulation D limits “convenient” withdrawals — such ATM transactions — in savings and money market accounts to six a month.

Are certificates of deposit a good place for your emergency fund?

CDs are term deposit accounts where it’s possible to get an attractive rate of interest, in exchange for agreeing not to withdraw your money for a certain period of time. You may close a CD and get your money back at any point in its term if you need to, but you generally will give up some or all of your earned interest as a penalty.

This factor makes CDs a less attractive choice for your emergency fund. Possible ways to mitigate this include using no-penalty CDs or building a CD ladder. No-penalty CDs usually have lower interest rates than conventional CDs, but you may make either partial withdrawals or withdraw the entire amount at any time over the course of the CD’s term penalty free. With a CD ladder, opening CDs of different terms provides you with a predictably stream of maturing CD income, although this is still a lower level of liquidity than other deposit account types.

Is a savings account the best place for my emergency fund?

A savings account can be a good option for an emergency fund because there are many options that pay decent rates of interest, they’re relatively liquid accounts, and they carry FDIC insurance. Your best bet when looking for a savings account is to check out online banks. Find an account with an ATM card or check writing privileges.

Savings account pros

  • FDIC insured up to the legal limit
  • You can deposit as much as you want, without restrictions
  • You can make six “convenient” withdrawals from your account a month without penalty
  • Online savings accounts offer competitive rates
  • Many savings accounts come with a debit card and allow for check-writing abilities

Savings account cons

  • Interest can be lower than some other options, like CDs
  • Savings accounts at traditional banks offer rock-bottom interest rates
  • May get hit with excessive transaction fees if you make more than six withdrawals from the account a month

When should I use my emergency fund?

Here’s a good rule of thumb to decide if an expense is an emergency: Ask yourself whether it’s unplanned and uncontrollable. True emergencies that are both unplanned and uncontrollable are things that materially impact your health, wellbeing or ability to earn a living.

One-time expenses like a great deal on a vacation package, that big-ticket gift you’d love to get your spouse, or paying for sleepaway camp for your kids are all the opposite of emergencies. Deciding how to pay for things like this, no matter how expensive, is part of your regular budget planning process.

Regular expenses that are not surprises, such as paying your property taxes or insurance on your car or home, are not emergencies. These bills may be large, but at the end of the day they are predictable expenses that should be part of your regular budget planning process.

Losing your job to a layoff or coming down with a life-threatening disease are the very definition of emergencies. These are the reasons you have an emergency fund: Peace of mind for the worst that life can throw at you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.