A client decides to use her tax refund to pay down her mortgage instead of contributing to an RESP. This demonstrates which financial planning goal-setting activity?

The choice of using her tax refund to pay down her mortgage rather than contributing to a Registered Education Savings Plan (RESP) illustrates a prioritization of financial goals. This indicates that she has assessed her financial situation and determined which goal holds more immediate importance to her, showing a clear prioritization within her overall financial plan.

When setting financial goals, individuals often have multiple objectives, each with different implications for their financial well-being. By choosing to reduce her mortgage debt, the client is indicating that she views the reduction of this liability as more crucial at this moment compared to saving for future education expenses. This decision reflects an ordered level of importance, as she is consciously selecting between various options available to her, weighing the implications of each based on her current circumstances and values.

This example emphasizes the necessity for effective financial planning to not only identify various goals but also to rank these goals based on their relevance and urgency, enabling clients to make informed decisions that align with their immediate financial priorities.