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Goal Shortfall Risk
The chance that the money available on the goal date is less than the amount needed.
Example
Mina needs $500 for a course next June. She has only $430 when payment is due, so the gap is $70 even though her account grew.
How it fits in
A learner can miss a goal because returns were lower than assumed, prices rose, fees were higher, contributions stopped, or money could not be sold in time. Start with the amount and date the goal requires, then test more than one possible path. A positive return can still leave a shortfall, and a longer horizon does not remove the need to check progress.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.