What does "spendthrift" refer to?

The term "spendthrift" specifically refers to a person who spends money extravagantly and wastefully, often without regard for future financial stability. This characterization emphasizes excessive or careless expenditure, highlighting a tendency to prioritize immediate gratification over prudent financial management.

In the context of the provided options, the choice that aligns with this definition accurately describes a spendthrift as someone who does not manage their funds wisely, opting instead for lavish spending habits. The other options focus more on saving, budgeting, or investing wisely, which are in direct contrast to the concept of being a spendthrift. Therefore, the correct understanding of "spendthrift" centers around wasteful extravagance in financial behavior.