| A | B |
|---|
| Financial goals | Specific objectives that are accomplished through financial planning |
| Financial planning | Managing money continuously through life in order to reach your financial goals |
| Goal | Something a person intends to acquire, achieve, or accomplish in the future |
| Long‐term goals | A goal that will be attained in more than one year |
| Opportunity cost | The value of the next best alternative that must be forgone as a result of a decision |
| Short‐term goals | A goal that will be attained in less than one year |
| Trade‐off | Giving up one thing for another |
| 8 | 8 |
