Maria, a single mother with two young children, earns $60,000 annually. Her monthly expenses are $4,000. She wants to build an emergency fund. What is the minimum recommended amount for her emergency fund?

Question: Maria, a single mother with two young children, earns $60,000 annually. Her monthly expenses are $4,000. She wants to build an emergency fund. What is the minimum recommended amount for her emergency fund?

Answer options:

• Approximately $12,000
• Approximately $18,000
• Approximately $24,000 ✅ Approximately $30,000

Correct answer: Approximately $30,000

Explanation: For an individual with dependents and a single income, it is generally recommended to have an emergency fund covering 6 to 8 months of essential living expenses. Given her monthly expenses of $4,000, a 6-month fund would be $24,000, and an 8-month fund would be $32,000. Option D, $30,000, falls within a sensible range (7.5 months) for her situation, leaning towards the higher end due to dependents.