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Time Horizon
The length of time before you expect to need the money.
Example
Noah needs $300 for a school trip in six months. His sister is saving for something ten years away. A fall next month creates a bigger problem for Noah.
How it fits in
A longer time horizon may allow more time to wait, add money, or change a plan after a fall. It does not make an uncertain result predictable or guarantee recovery. Match the horizon to the goal date, access needs, possible loss, and ability to keep following the plan. Money needed soon usually cannot tolerate the same path as money not needed for decades.
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.