International Baccalaureate (IB) Practice Exam

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Prepare for the International Baccalaureate with our quiz. Hone your skills with multiple-choice questions and detailed explanations. Excel in your IB exams!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the first thing you should prioritize saving for?

Your vacation fund
Your emergency fund
Your retirement fund
Your debt repayment

The correct answer is: Your emergency fund

The priority for saving should be an emergency fund because it provides a financial cushion for unforeseen circumstances, such as medical emergencies, job loss, or unexpected repairs. Having an emergency fund helps ensure that you can cover essential expenses without relying on credit or accruing debt, which can lead to financial instability. This fund typically covers three to six months of living expenses, offering security and peace of mind. While vacation savings, retirement funds, and debt repayment are all important financial goals, they may not provide the immediate safety and financial security that an emergency fund offers. Prioritizing an emergency fund allows you to manage fluctuations in income or unexpected expenses without derailing your overall financial plan. By securing this foundational financial resource, you can then confidently work on other savings and debts knowing you're protected against sudden financial shocks.