Creating A Safety Net

From Open Risk Manual


Creating A Safety Net. In the context of the Financial Competence Framework, Creating A Safety Net is a topic in the Risk And Reward subject matter domain.[1]


Mastering the role of Creating A Safety Net in financial literacy context requires the following competences:

Code Competency Description Competency Type
372 Knows how to create a financial safety net, such as rainy day savings Knowledge
373 Knows how to calculate how long it will take to build a safety net that could cover three month’s income Knowledge
374 Understands the role of insurance in managing risk Knowledge
375 Builds and maintains an adequate financial safety net through savings, insurance and other financial products as necessary Skill
376 Motivated to create a financial safety net Attitude
377 Motivated to purchase or update insurance against adverse events or outcomes with a financial consequence [where relevant] Attitude


  1. European Union/OECD (2022), Financial competence framework for adults in the European Union