Chapter 1 Planning: Your Financial Future Begins Here 5 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. LO 1-2 LO 1-2 Financial Goals Financial goals are an important element of a financial plan. A goal is something a person works toward or strives to achieve. A financial goal is a measurable objective related to acquiring or spending money. Strategies for achieving your financial goals will be included in your financial plan. They can be short-term or long-term. A financial short-term goal is an objective related to money that you want to achieve in six months or less. You may have simple short-term financial goals, such as buying a new video game or a gift for your friend’s birthday. Other short-term financial goals might be to earn money and purchase new school clothes. A financial long-term goal is an objective related to money that you want to achieve in the future. Long-term goals are generally set for six months or more. Your long-term financial goals might include saving for college, a new car, or your first home. A financial plan can help you think about how and when you want to achieve your goals. Most people do not have enough money to meet all of their goals without creating a plan for using money. Suppose you have a goal of buying a car when you turn 16. If you wait until your birthday to try meeting your goal, you may not have enough money saved. However, if you create a plan, you can begin taking steps to meet this goal, such as getting a part-time job. Blue Planet Earth/Shutterstock.comm Financial literacy is having the ability to understand basic topics related to finance, such as making, spending, and saving money. How would you describe your level of financial literacy? B lue Planet Earth/Shutterstock.co F t b f s m d f