When planning for goals, distinguishing between short-, medium-, and long-term horizons clarifies which tools to use. Short-term goals (weeks to a few years) benefit from liquid, low-volatility accounts — high-yield savings, short-term CDs, or labeled subaccounts — because the priority is capital preservation and predictable timing. Medium-term goals (several years) might mix conservative bonds or laddered vehicles with higher-yield savings. Long-term goals (retirement, funding college decades away) benefit from market-exposed investments that compound over time. Financial advisors often recommend matching the investment vehicle’s risk profile to the time horizon: don’t stash retirement money in temporary cash, and don’t put an imminent down payment into a volatile stock portfolio. For budgeting, this means allocating surplus differently depending on the goal’s timeline and liquidity needs. Sinking funds and labeled accounts are techniques for short-term goals; automatic contributions to investment accounts fit long-term aims. The question asks you to choose the safest place to keep money earmarked for a major purchase planned within the next 12 months.