Meaning of the word "contingency fund" in English

What does "contingency fund" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

contingency fund

US /kənˈtɪndʒənsi fʌnd/
UK /kənˈtɪndʒənsi fʌnd/

Noun

a reserve of money set aside to cover unforeseen expenses or emergencies

Example:
It's wise to have a contingency fund for unexpected repairs.
The company established a contingency fund to mitigate financial risks.