When people first begin planning for retirement, saving for a child's college education, and planning for a vacation home, these are usually categorized as what type of goals?

When considering financial goals such as retirement planning, saving for a child's college education, and planning for a vacation home, these goals are categorized as long-term goals. This classification stems from the fact that achieving these objectives typically requires a significant amount of time — often several years or even decades — to accumulate the necessary funds.

Long-term goals are distinguished from short-term and intermediate goals by the time frame required to accomplish them. Short-term goals usually involve a time frame of less than a year, while intermediate goals might span one to five years. In contrast, the objectives mentioned, like retirement saving or funding education, often take ten years or more to achieve.

Therefore, understanding that these goals require careful planning and consistent contributions over an extended period is essential in the context of personal finance. It allows individuals to adequately prepare and allocate resources effectively to meet their future financial needs.