tom, age 18, has five goals. 1) he would like to buy a $20,000 car. 2) he wants to attend and graduate from…

tom, age 18, has five goals. 1) he would like to buy a $20,000 car. 2) he wants to attend and graduate from college but does not know his major or target colleges. 3) although he thinks his parents are great, tom wants to have a better standard of living than his parents and friends. 4) tom would like to be married, have children, and have the income to save to be financially independent. 5) he wants to be a leader and try to change the world. his parents have saved $20,000 for him to buy a car or pay for college tuition. tom decides to use the $20,000 for college and not borrow money for college. this case study is an example of which two planning concepts from toms perspective. smart goals opportunity cost of spending short, mid & long - term goals opportunity costs of saving a 10 - year life plan

tom, age 18, has five goals. 1) he would like to buy a $20,000 car. 2) he wants to attend and graduate from college but does not know his major or target colleges. 3) although he thinks his parents are great, tom wants to have a better standard of living than his parents and friends. 4) tom would like to be married, have children, and have the income to save to be financially independent. 5) he wants to be a leader and try to change the world. his parents have saved $20,000 for him to buy a car or pay for college tuition. tom decides to use the $20,000 for college and not borrow money for college. this case study is an example of which two planning concepts from toms perspective. smart goals opportunity cost of spending short, mid & long - term goals opportunity costs of saving a 10 - year life plan

Answer

Brief Explanations:

  1. Opportunity cost of spending: Tom has a choice between buying a car and paying for college with the $20,000. By choosing college, the car - which he could have bought - is the opportunity cost of his spending decision.
  2. Short, mid & long - term goals: His goals like going to college are short - term, getting married and having children are mid - term, and being a leader to change the world is a long - term goal. His decision to use the money for college also aligns with his long - term goal of a better standard of living and financial independence.

Answer:

Opportunity Cost of Spending, Short, Mid & Long - Term Goals