Precautionary saving is saving for:
A) retirement, when income falls.
B) unpredictable expenses.
C) bequests to benefit children.
D) repayment of debt previously incurred.

Question

Quizplus · Accepted Answer

Precautionary saving is saving for unexpected or unpredictable expenses such as medical emergencies, job loss, or unexpected repairs. Retirement savings is typically planned and expected, and bequests to children are more focused on providing for future generations rather than immediate financial security. Repayment of debt previously incurred is also a planned expense rather than a precautionary one.

Precautionary Saving Is Saving For