Creating A Safety Net
From Open Risk Manual
Definition
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]
Competences
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 |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
