What defines a financial goal?

A financial goal is characterized by specific objectives that individuals aim to achieve through careful planning and informed decision-making. These goals are often measurable and time-bound, allowing individuals to track their progress and adjust their strategies accordingly. For instance, a financial goal could be saving a certain amount for a down payment on a house within a specific timeframe or preparing for retirement with a targeted savings amount. This contrasts significantly with general desires about money, which may lack clarity and direction, thus making it challenging to create actionable plans. The other choices reflect broader or less defined concepts, such as casual spending or simply having a large sum of money, which do not encapsulate the intention and structure of a financial goal as defined by a specific objective.