Which of the following is an example of a long-term financial goal?

A long-term financial goal is typically defined as a financial objective that takes a significant amount of time to achieve, often involving substantial amounts of money and planning. Saving for retirement is a prime example of such a goal because it requires a considerable time frame—many years or even decades of saving and investing to accumulate a sufficient nest egg for one's later years.

Retirement savings involve setting aside money consistently over a long period, often beginning in early adulthood and continuing until retirement age. This goal requires careful planning, foresight, and often involves various financial strategies, such as investing in retirement accounts that can appreciate over time. Given the extended timeline and the importance of compounding interest, saving for retirement embodies the principles of long-term financial planning.

In contrast, the other examples presented—saving for a vacation, buying groceries, and paying monthly bills—represent short-term financial goals or immediate needs. These involve planning and saving efforts on a much smaller scale and in a much shorter timeframe. For instance, saving for a vacation typically focuses on a few months to a couple of years of saving, while buying groceries and paying monthly bills are regular, ongoing expenses that need immediate attention and funds.