Speaker 1: 00:01:27.942 --> 00:01:31.942 And then like I said, we are. Recording. 00:01:33.234 --> 00:01:35.234 Right. 00:01:34.288 --> 00:01:45.288 I'm so if you are new to Ohio State University extension. We are in education driven organization that promotes lifelong learning. 00:01:45.289 --> 00:01:55.289 We are a dissemination of the latest research. And technologies to increase productivity and expand the state's economic base. 00:01:55.295 --> 00:02:05.295 And a statewide network with a presence in every county. So there are 88 counties in Ohio. There are 88 plus extension offices. 00:02:03.984 --> 00:02:10.984 There is one in every county. You want to know how to find the extension in your county, just shoot us a. 00:02:10.504 --> 00:02:16.504 A message in the chat and we can kind of link you up with where your county, extension would be. 00:02:16.098 --> 00:02:28.098 So we link individuals, communities and businesses to the research and resources of the Ohio State University. So I always tell people that extension is an extension of the university. 00:02:27.278 --> 00:02:37.278 We, we take all of the research and things that are done at the university and then we as county educators take those to the people in our county. 00:02:36.551 --> 00:02:47.551 There's 4 program areas with an extension. I'm community development. Agriculture and natural resources. 00:02:44.428 --> 00:02:58.428 A lot of people are familiar with the 4 H program And then we are family consumer sciences. And so we do programming on finances and family and health. 00:02:59.980 --> 00:03:01.980 And so that is why we're here today. 00:03:01.594 --> 00:03:17.594 And this presentation is available in alternative media upon request. If I say the name of any vendors, there is no discrimination intended or any endorsement by Ohio say extension. 00:03:18.590 --> 00:03:23.590 I mean, we are an institution, is an equal opportunity provider. 00:03:23.374 --> 00:03:31.374 All right, so let's get started. So an honor of the eclipse yesterday. I thought it was fitting to have the pig with the sunglasses. 00:03:31.307 --> 00:03:37.307 I thought that was kind of fun. So today we're going to talk about what is the unexpected. 00:03:38.934 --> 00:03:45.934 What is an emergency fund? How does start saving and how to make a plan for that. 00:03:45.657 --> 00:04:00.657 So if you put in the chat box just what are some unexpected things. What are things that happen? In our life in a daily daily occurrence, things that are just unexpected. 00:03:57.214 --> 00:04:04.214 And expected expenses. 00:04:08.858 --> 00:04:11.858 Our repairs, house repairs. 00:04:13.246 --> 00:04:15.246 Perfect. 00:04:17.444 --> 00:04:20.444 We'll give a couple more seconds for that. 00:04:22.624 --> 00:04:24.624 Yes. 00:04:30.903 --> 00:04:35.903 Alright, so these are things that I just thought up at the top of my head. So. 00:04:35.633 --> 00:04:44.633 Our car accident so nobody expects to get in a car accident. I got in a car accident. 00:04:42.527 --> 00:04:54.527 I was at work and somebody hit my car in the parking lot. So I was not in the car, but somebody just hit my car and the parking lot. 00:04:50.400 --> 00:05:00.400 So that was something totally unexpected. So that was a big hassle and Not really cost to me, but just kind of an unexpected thing. 00:04:59.595 --> 00:05:07.595 I'm flooding, so flooding in your home, talking about home repairs. I'm appliance breakdown. 00:05:04.239 --> 00:05:18.239 And they always seem to break down at the most unexpected and worse times. Car repair so your bricks go bad, the transmission. 00:05:16.241 --> 00:05:30.241 I have lots of stories about unexpected emergency car repairs. I'm health issues. So if we suddenly, you know, start having health issues and those medical bills start piling up. 00:05:23.885 --> 00:05:41.885 Those are very unexpected things. Pregnancy. So even though it's, you know, you might be planning or maybe it's not planned, but that can also be something that could be unexpected. 00:05:42.283 --> 00:05:53.283 A move. So if say you need to move from one house to another or an apartment or if you got a new job somewhere and you unexpectedly have to move. 00:05:53.246 --> 00:05:58.246 That is something that's also plan for it. Oh, I have pregnancy on there twice. It must be on the brain. 00:05:57.635 --> 00:06:08.635 Move, divorce. So that can be something that could be unexpected as well. A trip. So if something happens, I live. 00:06:07.953 --> 00:06:17.953 My family is from the state of Washington and I live in Ohio. So sometimes things happen and I have to unexpectedly take a trip. 00:06:10.951 --> 00:06:25.951 Out there for my family. Zet those. We love our animals, but sometimes they cost us a lot of money. 00:06:26.105 --> 00:06:36.105 Yeah, lots of stories there as well. And then job loss. So there are many, many things that happen good and bad. 00:06:28.490 --> 00:06:44.490 So that trip could also be a good thing. You have an opportunity to go travel somewhere. With with friends or family that can also be a good thing. 00:06:44.038 --> 00:06:54.038 But these are all things that are unexpected. So then I'm going to talk a little bit, personally about My story, this happened. 00:06:53.388 --> 00:07:03.388 Not too long ago. Sorry. Is unexpected job loss. 00:07:02.506 --> 00:07:10.506 So my husband. Unexpectedly lost his job. He had been at the same place for 13 years. 00:07:09.669 --> 00:07:21.669 And he lost his job 6 weeks before I was due with my third child. So he just called me up on the phone one day during work and he said, I've been sent home. 00:07:20.424 --> 00:07:32.424 I said, well, what do you mean? I thought maybe he tested positive for COVID or they didn't have enough people for him to see that day and he said, no, they just, they sent me home. 00:07:31.795 --> 00:07:47.795 So automatically went to panic. But then after we had kind of calmed down and we could talk about it a little bit more, we really sat down and financially looked at what was going to happen. 00:07:46.698 --> 00:08:02.698 So luckily we had been saving money. In different accounts including our long term savings account. So we had automatically saved a certain amount each month into a long term savings. 00:08:01.275 --> 00:08:10.275 And I'll talk a little bit more as we go through that. Through this presentation. So we saved in that long-term savings. 00:08:07.364 --> 00:08:16.364 And then we also have other different accounts where we had put money around. Each month, but we don't necessarily use them each month. 00:08:16.064 --> 00:08:25.064 So we have little pockets to kind of help us. So luckily he was able to find a job pretty quickly. 00:08:24.431 --> 00:08:34.431 So he had been working in healthcare. And his new job was at a school. So that was also a reduction in pay. 00:08:33.990 --> 00:08:44.990 And because he started at the kind of in February of the school year. Most of the time in a school they divide your pay so that you get paid in the summer. 00:08:44.226 --> 00:09:00.226 But because he started in February, he did not get that. Payout through the summer. So that was also very much planning for us was how are we going to make it through the summer essentially on one income instead of 2. 00:08:59.237 --> 00:09:06.237 So that was something that we also needed to look into those other savings. That we had had. 00:09:05.120 --> 00:09:13.120 So we're able to use what we had saved up to make the difference until we were back on our feet. 00:09:12.434 --> 00:09:19.434 So now, been at the school for a year. We'll get that summer pay so we feel like we can breathe a little bit easier. 00:09:19.319 --> 00:09:28.319 But we were lucky that we had planned ahead and saved for the unexpected because we did not expect him to lose his job so suddenly. 00:09:29.431 --> 00:09:40.431 I'm so my advice is to expect the unexpected. So little things and big things will happen when you at least expect them to so that car break down. 00:09:31.376 --> 00:09:48.376 We were driving home from a from a weekend trip and the transmission and our vehicle went out had to be towed, had to get fixed. 00:09:47.532 --> 00:09:57.532 Just when we least expect it. But if you're planning and saving for something unexpected. You can save in the long run. 00:09:56.680 --> 00:10:07.680 So by being able to put money away and pay for those unexpected items, you're not putting things on credit cards so that you're not putting that interest. 00:10:08.854 --> 00:10:10.854 On that as well. 00:10:11.553 --> 00:10:19.553 So what's an emergency fund so you may have had, may have heard this term emergency fund. 00:10:19.114 --> 00:10:27.114 So emergency fund is a savings or checking account that you have on reserve to help with unplanned expenses. 00:10:27.126 --> 00:10:35.126 So you'll hear the word emergency fund used a lot. But they also call them. I know for some reason I don't like that word. 00:10:32.838 --> 00:10:51.838 Emergency fund. Unplanned Unplanned funds just extra funds a stowaway fund anything Yeah, really you're saving that money for for when things happen and you just need need to pay them. 00:10:52.663 --> 00:11:07.663 So I'm. So have a savings or checking account as an emergency fund. So I suggest, using a savings or checking accounts as opposed to other funds. 00:11:06.748 --> 00:11:18.748 You need to be able to access this money quickly in in in the case of an emergency. So savings and checking the accounts are easy to access. 00:11:17.971 --> 00:11:27.971 If you have money tied up in Roth IRA or a CD or some other kind of account. 00:11:23.842 --> 00:11:32.842 One, you might have a penalty for getting that money out and that's not what you want to have. 00:11:31.797 --> 00:11:38.797 And it just really just might be harder to access that money. So it wants to be fluid. 00:11:37.606 --> 00:11:47.606 You want to be able to get that access. Have the fund at a different financial institution than your other accounts. 00:11:46.644 --> 00:11:58.644 So this is the case for us. We have all of our other savings and checking accounts at one financial institution, but our actual emergency fund is at a different bank. 00:11:57.704 --> 00:12:06.704 And so that way it is harder for us to go and use that money. So it makes us think a little bit more before we use that. 00:12:05.653 --> 00:12:14.653 And so that's kind of like what is an emergency. So yes, it makes it harder to use unless it's absolutely necessary. 00:12:13.524 --> 00:12:32.524 And save automatically into this fund each month. So. If it's an auto deduction from your paycheck into that certain account, if it's just something that you were writing a check and it's going into that fund saving monthly into that fund. 00:12:31.962 --> 00:12:36.962 And so it's that average site out of mind until you need to use that money. 00:12:38.119 --> 00:12:48.119 So what is an emergency? So often people will dip into the emergency fund for things that are not actually an emergency, but that is defined by you. 00:12:48.250 --> 00:12:54.250 So, you know, if you have. You know, something that might be an emergency for you. 00:12:54.127 --> 00:13:02.127 Might not be the same for me so it's really what you decide is an emergency and it's good to think about that ahead of time. 00:13:00.643 --> 00:13:10.643 Some things might be an inconvenience, but maybe not an emergency. So really define what is an emergency. 00:13:11.332 --> 00:13:22.332 And very important if you have a co-spender so that someone in your house spends the money with you. 00:13:16.914 --> 00:13:30.914 It's a spouse, a boyfriend, a girlfriend, children. You know agree together what's an emergency because like I said we all might think that emergencies are different things. 00:13:31.298 --> 00:13:35.298 So really important to get on that same page. 00:13:35.424 --> 00:13:42.424 And then something else I wanted to mention. So the emergency funds. So it also doesn't have to be just one fund. 00:13:41.924 --> 00:13:53.924 So we often talk about an emergency fund on its own. Like I had mentioned before, you can also have Same extra in different savings accounts or checking accounts. 00:13:53.378 --> 00:14:06.378 So that you're kind of spreading it out. So in, for example, in my household, we just have a house repair fund, which is separate from our emergency fund. 00:14:05.940 --> 00:14:12.940 So we put a little bit in this house fund. And then when we do have an appliance breakdown. 00:14:12.325 --> 00:14:24.325 Or, need a repair. We can use that money and not our actual emergency fund. So they're kind of spread out amongst a lot of different ones. 00:14:25.955 --> 00:14:27.955 You're gonna find what works well for you. 00:14:27.549 --> 00:14:35.549 So then when we talk about saving for that emergency fund. It's okay to start small. 00:14:32.293 --> 00:14:41.293 I do a lot of financial education and people like, I, I don't even have anything to save for an emergency. 00:14:40.795 --> 00:14:47.795 Well, does not have to be a large amount. If you were even to do, you know, $5 a month. 00:14:46.854 --> 00:15:00.854 Into an emergency account over each month over the years that that will really add up. And so we talk about doing a little bit each month, but also if you're able to put a large chunk. 00:15:00.671 --> 00:15:07.671 At one time. So this is about the time we're people are doing their taxes and getting your tax return. 00:15:06.636 --> 00:15:15.636 So consider putting a portion of your tax return into that emergency fund. You could do that as a starter. 00:15:14.090 --> 00:15:20.090 You could do that as more of a buffer. In order to kind of build up that fund. 00:15:20.237 --> 00:15:33.237 And then save automatically. So if your employer has that. You know, auto, auto payment into your accounts, you know, if you're able to Just save automatically into that. 00:15:33.797 --> 00:15:36.797 That would be. That would be a great way to do that. 00:15:37.405 --> 00:15:46.405 How much should we save? So ideally you should do about 3 to 6 months of expenses. 00:15:45.968 --> 00:15:55.968 So in my case, you know, we were able to kind of get back. Just pretty much normal in about that 3 to 6 months. 00:15:55.956 --> 00:16:06.956 So ideally about 3 to 6 months months of expenses. So in order to know that you need to track your expenses for several months, to see your monthly spending. 00:16:06.037 --> 00:16:13.037 So you're able to see how much is your mortgage. How much is your car payment, your electric? 00:16:12.431 --> 00:16:25.431 Your phone all of those kind of essential things like how much is that you know, what that 3 to 6 month of expenses number is gonna be for that emergency fund. 00:16:24.797 --> 00:16:34.797 And then also take into account those expenses that are not regular. So these. Kind of once a year, maybe a couple of times of year things. 00:16:33.352 --> 00:16:40.352 So. The renewal for your car registration, which always happens on your birthday. I don't know. 00:16:39.858 --> 00:16:51.858 I said that was funny. School fees. So if you have children that are in school, you know, at the beginning of the year, so August September and they have to pay school fees. 00:16:53.300 --> 00:17:00.300 So those are something to take into account to have that little bit of cushion for those kind of unexpected things. 00:17:01.979 --> 00:17:12.979 Then make it your goal. So we talk about having financial goals. So if you do not have an emergency fund, maybe it's time to make it your financial goal. 00:17:12.107 --> 00:17:20.107 We always, we make goals. We talk about the acronym Smart. To be specific, measurable. 00:17:21.417 --> 00:17:23.417 Attainable. 00:17:25.946 --> 00:17:33.946 Reachable and have a timeline set to it. So we're gonna make a smart goal to have that emergency thought. 00:17:35.325 --> 00:17:43.325 And then make the plan to start. So some things to think about. So where is that account gonna be? 00:17:43.075 --> 00:17:49.075 Is it going to be at your normal bank? Is it going to be at a different bank? 00:17:48.520 --> 00:17:55.520 Oh, sorry, reachable or realistic. Thank you, Courtney. Couldn't think of the R off the top of my head. 00:17:55.639 --> 00:18:03.639 I'm so where is the account gonna be? Is it gonna be at a local institution? Is it going to be the same one that you already think at? 00:18:01.261 --> 00:18:13.261 Is it going to be one that's maybe across town, a little bit harder, a little bit more distance to drive so that it really makes you think before you go and use that emergency money. 00:18:12.886 --> 00:18:19.886 And what type of account is it going to be? Is it gonna be a savings account? Is it gonna be a checking account? 00:18:18.266 --> 00:18:28.266 Is it gonna be a different kind of account that is harder to be able to get that money out? So think about what type of account that emergency fund is going to be. 00:18:27.366 --> 00:18:35.366 Who will have access to the account? Is it just going to be in your name? If you have a co spender, is it going to be both of you? 00:18:34.607 --> 00:18:43.607 If you have children Who's gonna be on the account? That's actually gonna be able to take the money out of that account for that. 00:18:42.515 --> 00:18:50.515 Will you save automatically? So things to think about if your employer does that for your paychecks. 00:18:49.514 --> 00:19:01.514 If you set up a system, sometimes you can do it on your banking system where you can automatically each month just transfer money. 00:19:00.405 --> 00:19:07.405 So what you save automatically and how are you going to do that? And then how much will you save each month? 00:19:06.599 --> 00:19:14.599 So looking at your current expenses. You know, are you able to save that $5 put in that $5 a month? 00:19:09.859 --> 00:19:20.859 Did you do a little bit more? Could you do a portion of that tax return or any other kind of chunk? 00:19:19.610 --> 00:19:25.610 Big payment of money because you put a portion of that. So how much are you going to save? 00:19:24.727 --> 00:19:36.727 And then will you, when will you start now? It's never too early. So think about these questions and, and make a plan to actually start. 00:19:31.110 --> 00:19:46.110 Because if you're not starting, you're not getting anything in that fund. So I encourage you to complete the American Saves Pledge. 00:19:45.797 --> 00:19:52.797 So America saves.org. Courtney, could you put that in the chat? That would be great. 00:19:52.114 --> 00:20:04.114 America saves.org. They have the pledge and one of their things you can check is to make a emergency savings account, emergency fund. 00:20:03.906 --> 00:20:09.906 So if you go on there and you can put, that you wanted to do that emergency fund. 00:20:09.586 --> 00:20:16.586 You can put how much you want to put in that fund. It can calculate how much you can save each month. 00:20:15.802 --> 00:20:21.802 And how long it's gonna take you. So that is a really great tool if you have not been there. 00:20:21.273 --> 00:20:31.273 And I said today, the focus for America Saves Week today is about saving for the unexpected. 00:20:31.967 --> 00:20:34.967 So perfect tie-in for that emergency fund. 00:20:39.001 --> 00:20:43.001 And so Courtney put that in the chat for anybody who's interested in looking at that. 00:20:42.573 --> 00:20:50.573 And so that is all there is some references the consumer finance. Gov some really great things. 00:20:49.519 --> 00:20:58.519 There's some. Extension resources and then that America saves. Emergency fund is a great reference as well. 00:20:57.950 --> 00:21:05.950 So if there are any questions, I will have some time to stick around if anyone has questions. 00:21:03.584 --> 00:21:18.584 You can put them in the chat box. Otherwise, thank you for joining. Tomorrow. The topic is alphabet soup. 00:21:17.665 --> 00:21:28.665 The accounts that will help you save. I'm so it's interesting topic for tomorrow. Courtney also put an evaluation in the chat box. 00:21:29.614 --> 00:21:34.614 It's just 3 questions, so it'll take you maybe 1 min. 00:21:29.741 --> 00:21:31.741 I would appreciate everybody. 00:21:32.506 --> 00:21:45.506 Awesome. 3 questions, 1 min evaluation. We would really appreciate that. Thank you so much for joining and I hope everyone comes back on some morrow should be a good presentation. 00:21:46.443 --> 00:21:49.443 And have wonderful rest of the day.