What is the difference between a savings account and an emergency fund?
The main difference between a savings account and an emergency fund is the purpose of each.
Savings accounts are for planned expenses. These are expenses that you know you have coming up, and you are slowly saving aside your money for. They can be things that are both essential like rent and car payments and non-essential like a hard-earned beach vacation.
Emergency plans are for unplanned and essential expenses. These are expenses you didn’t expect, but have a just-in-case cushion for.