Chapter 10 ( Graduation)

dave and tom and cathy come in and they have a gift for roy for all he has done for them. roy is embarrassed and said it wasn't necessary, and that his reward is seeing their finances in good shape. roy then begins with a lesson about emergency funds. he does not agree with the idea that you need a 6 month emergency fund. roy believes 2-$3000 dollars is sufficient. he says its common sense that if you have a job where you would be more easily laid off then you should have more money set aside in an emergency fund. it also depends on the person how much money you would need. the next topic he brings up is how to save for a child's college education. roy believes some of the responsibility of paying for it should be the child's but alot should also fall on the parent. he also suggest that a prepaid tuition fund is a good idea to lock in a rate. another idea is investing in an education IRA account. HE however sticks by the philosophy to purchase on a monthly basis a well selected equity mutual fund for your child. he also says not to sacrifice retirement for college, that it isn't a good move. he also says a good way to save for college is to get family members to donate. the next topic is disability and health insurance. he tells them medical expenses are a sure way to wipe you out financially and too make sure you have insurance. he also states disability insurance is the one that many people overlook and the statistics are 1/4 that we will need it. His fourth and final topic is about staying informed and that we must always keep up to dat on financial topics. he gives them final words and diplomas