AI Tutor
Imagine you get a $20 bill for your birthday — do you spend it on candy today, or put it away for something much bigger later?
When you decide to hold onto money for a specific purchase in the future, you are setting a financial goal.
How do you know whether a goal is going to take a couple of weeks or several years to reach?

Short-Term vs. Long-Term Goals

A short-term goal is something you plan to buy soon, usually within a few weeks or months, like a $25 soccer ball.
A long-term goal requires patience because it takes a year or more of steady saving, such as a $300 laptop or bicycle.
Once you pick a goal, where should you actually stash your money while it grows?

Cash at Home vs. Bank Savings

Keeping cash in a piggy bank makes your money easy to see and touch, but cash can get lost, stolen, or accidentally spent on impulse buys.
A savings account is a secure bank account where your money stays safe from loss and earns interest — bonus money the bank pays you over time just for keeping your savings with them.
If you know what an item costs, how can you figure out the exact date you will have enough money?