Our son is in high school. Should a teenager have an emergency fund, too?

Dear Dave,

Our son is in high school, and he has a car and a part-time job nights and weekends. We’ve worked with him on saving, spending and giving, but should a teenager have an emergency fund, too? If so, how much do you recommended them setting aside?

Dominic

Dear Dominic,

This is a great question! I’m glad to know you’re working with your son and teaching him wise financial habits.

I always recommend an emergency fund of three to six months of expenses for adults, and I think that’s a fair expectation for teens, as well. He won’t need as big an emergency fund as a married couple with kids if his expenses consist only of those connected to his car and social life. So, I’d suggest him saving up three months’ worth of what it takes to operate the car—gas, insurance and maintenance.

I think those are fair financial responsibilities for a responsible teen in his situation.

— Dave