Which of the following is considered to be a long-term financial goal?

• A. Paying this month's utility bill
• B. Purchasing groceries for the week
• C. Making a quarterly tax payment
• D. Saving for retirement in 30 years

Answer: (D)

Verified step by step guidance

1. Understand the concept of long-term financial goals: These are objectives that require planning and saving over an extended period, typically years or decades, such as saving for retirement, buying a house, or funding a child's education.
2. Differentiate between short-term and long-term financial goals: Short-term goals are immediate or near-term expenses, such as paying utility bills, purchasing groceries, or making quarterly tax payments. Long-term goals involve significant planning and are aimed at achieving financial security or major life milestones.
3. Analyze the options provided in the problem: Paying this month's utility bill, purchasing groceries for the week, and making a quarterly tax payment are all short-term financial goals because they involve immediate or near-term expenses.
4. Identify the correct answer: Saving for retirement in 30 years is a long-term financial goal because it requires consistent saving and investment over a prolonged period to ensure financial security in the future.
5. Conclude the reasoning: The correct answer is saving for retirement in 30 years, as it aligns with the definition and characteristics of a long-term financial goal.