HUD Housing Counselors Module 1.1 Financial Management Budget Exam Questions With Correct Answers

Track Income Item to include in budget - Answer Regular Salary, Temporary Jobs, Unemployment compensation, Public assistance Track Income Items not to include in budget - Answer Pre-tax payroll deductions (Retirement funds, Flexible Spending account. Credit Score Documents to use for income - Answer Paychecks, Direct Deposit Slips * If self-employed, Income and expense sheets Additional income checks or cash Government benefits letters (SSI, unemployment, etc) Track Expenses Items to Include - Answer All bills, All fixed monthly expenses, All cash expenses. Seasonal or annual expenses such as car registration, gift, tax preparation fee, vacations or expenses related to the holiday Documents to Use for expenses - Answer Utility, insurance and other bills, Bank Statements, Credit card Statement, car registration, school supplies Next step in Budget Counseling Session - Answer 1) Help the client identify short- and long-term goals 2)Discuss the importance of budgeting as a tool to achieving goals. 3)Explain the budget creation process and the necessary components. 4) Coach client on strategies for defining needs over wants. 5) Walk through strategies for adjusting goals and budget. 6)Develop a client Action plan that includes client action/task and time frames.