Question

how do short - term financial goals differ from long - term financial goals?
short - term goals involve more planning than long - term goals.
short - term goals are more affordable than long - term goals.
short - term goals cost more than long - term goals in the long run.
short - term goals are more immediate than long - term goals.

Explanation:

To determine the correct answer, we analyze each option:

• Option 1: Long - term goals typically require more planning as they span a longer period, so this is incorrect.
• Option 2: Affordability is not a defining difference between short - and long - term financial goals. Short - term goals can be expensive and long - term goals can be affordable depending on the goal, so this is incorrect.
• Option 3: There is no inherent reason why short - term goals would cost more in the long run. Long - term goals like retirement savings or buying a house can have significant costs over time, so this is incorrect.
• Option 4: By definition, short - term financial goals are those that are to be achieved in the near future (e.g., within a year), while long - term goals are for a longer time horizon (e.g., 5 + years). So short - term goals are more immediate.

Answer:

D. Short - term goals are more immediate than long - term goals.