There is the idea of having an emergency fund, which given its nature, should be stored in an instant access savings accounts.

This is money for when you lose your job for instance

Your appetite for risks and circumstances determine how big it should be (a good rule of thumb is six months worth of salary) but there are countless stories of people trying to be clever with their emergency funds and storing them in ETFs or riskier investments only to find that when the need comes, their fund is not enough and get in financial distress.

If you're a US citizen, "I Series Savings Bonds" are fantastic emergency fund vehicles. You can cash them out instantly after holding them only one year, mine are paying just under 2% right now.

Series I Savings Bonds are currently 1.06%.

https://www.treasurydirect.gov/indiv/research/indepth/ibonds...

credit union savings accounts. mine pays 2.5%. you won't have penalty.

Yes it is. That 3K is the average young person's only asset and it is just getting eaten by inflation anyway.

These people struggle to pay rent each month let alone think about "investments".

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Sure you will lose a little bit, like 2 or 3% a year. But if you have nothing saved then what will you do in case of an emergency? such as losing a job?

29.99% interest credit cards.