Hillary and Justin Palmer plan to save $6,000 for a vehicle down payment in three years. What is an appropriate short-term goal?

The appropriate short-term goal for Hillary and Justin Palmer is to save $2,000 this year. This option breaks down their larger savings goal into manageable increments, aligning with the timeline of three years. By saving $2,000 each year, they would reach their target of $6,000 by the end of the third year, making this plan both realistic and achievable.

Setting a savings target of $2,000 this year allows them to pace their contributions effectively, ensuring they are not overwhelmed by trying to save the entire amount in a single year. It also allows them to adjust their budget and habits gradually, which can be beneficial for maintaining sustainable savings behavior over the long term.

In contrast, the other choices either require saving too much too quickly or do not meet the goal within the specified timeframe. For example, saving $6,000 this year alone would require an immediate full commitment that might not be financially feasible. Similarly, saving only $1,000 this year or $4,000 next year would not adequately support reaching their overall savings goal within three years. Therefore, the approach of saving $2,000 this year offers the best balance between immediate savings and long-term goals.