Final answer:
The opportunity cost of decisions (option D) is important to understand before creating financial goals, as it represents the alternatives forgone when a choice is made.
Step-by-step explanation:
Before creating financial goals, it's important to be aware of several factors, with the opportunity cost of decisions being particularly crucial. This economic principle implies that every choice excludes an alternative. For instance, if you decide to allocate your income towards buying video games, the opportunity cost involves the experiences or goods you cannot afford as a result, such as going to the movies.
The concept of opportunity cost is vital because it helps individuals understand the trade-offs involved with every financial decision. For example, the choice to invest in higher education might come with an opportunity cost of lost wages from full-time employment during schooling. Therefore, when setting financial goals, considering the benefits and drawbacks of alternatives through the lens of opportunity cost is essential for making informed decisions.