Which of the following is a long-term financial planning activity?

Long-term financial planning is focused on setting and achieving financial goals over an extended period, typically involving a horizon of several years or even decades. The correct choice involves determining the savings activities needed to meet these financial goals. This process typically includes assessing future needs, such as retirement savings, education costs, or purchasing a home. It requires a strategic approach to allocate resources effectively and plan for future financial stability.

Creating a monthly budget is essential for short-term financial management as it helps individuals track their income and expenses, but it does not necessarily involve long-term planning. Day trading investments are typically short-term strategies aimed at quickly capitalizing on market fluctuations rather than establishing a long-term financial strategy. Paying off credit card debt is an important financial responsibility and can be part of a broader plan, but it primarily addresses immediate financial obligations rather than long-term wealth accumulation or planning.