Certified Personal Finance Counselor
(CPFC) Certification questions &
answers
Reasons to File for BK - ANS ✔✔- job loss
- underemployment
- business loss
- divorce
- death
- natural disaster
- medical debt
- theft
- gambling
- drug abuse
- overspending
Gross Income - ANS ✔✔$$ you make BEFORE taxes
Net Income - ANS ✔✔$$ you make AFTER taxes
How does marital status affect BK? - ANS ✔✔- If you file jointly, more assets are protected
- Legally separated couples can still get some married benefits
How does number of people in the house affect BK? - ANS ✔✔- More ppl in household =
expenses go up
,- dependents rely on you for financial support
Fixed Expenses - ANS ✔✔- rent/mortgage payments
- car payments
- insurance
- HOA fees
Variable Expenses - ANS ✔✔- groceries
- gas
- utilities
Housing Expenses - ANS ✔✔- mortgage/rent
- lot rent
- property taxes
- home repair
- interest on mortgage loans
- HOA dues
- homeowners/renters insurance
Medical Expenses - ANS ✔✔- contacts/glasses
- meds
- office visits
Utilities Expenses - ANS ✔✔- gas
- electricity
- water/sewer
,- heating oil
- garbage collection
- home and cell service
- cable/streaming services
- internet
Tax-Exempt Items - ANS ✔✔- house
- clothes
- retirement
Non-Exempt Items - ANS ✔✔- luxury
- 2nd home
- investments
Transportation Expenses - ANS ✔✔- car payments
- maintenence
- gas
- insurance/ registration
"Other" Expenses - ANS ✔✔- life insurance
- tithing
- pet care/grooming/insurance
Pro-Bono - ANS ✔✔atty takes on client free of charge
Pro-Say - ANS ✔✔client files for BK w/o atty
, Green Path - ANS ✔✔repayment plan company that we suggest to clients
Cash Flow Management - ANS ✔✔a.k.a budgeting
Analyzing net worth, creating a budget, setting short-term and long-term goals
Financial Capacity - ANS ✔✔Capacity based on knowledge, skills, and access to manage
financial resources effectively
6 Components to a Budget - ANS ✔✔- income
- taxes
- fixed expenses
- variable expenses
- periodic expenses
- discretionary expenses
Periodic Expenses - ANS ✔✔Costs that occur on a irregular but predictable basis, unlike fixed
expenses which happen monthly
Ex: tuition payments, car registration, and property taxes
Discretionary Expenses - ANS ✔✔Non-essential costs i.e. "wants" not "needs"
Ex: dining out, going to the movies, gym memberships, traveling for leisure
Things you need before creating a budget - ANS ✔✔- recent pay stubs
- records of other sources of income
- copies of household bills, like utilities
- records of all outstanding debts (a credit report may be the best source for this)
(CPFC) Certification questions &
answers
Reasons to File for BK - ANS ✔✔- job loss
- underemployment
- business loss
- divorce
- death
- natural disaster
- medical debt
- theft
- gambling
- drug abuse
- overspending
Gross Income - ANS ✔✔$$ you make BEFORE taxes
Net Income - ANS ✔✔$$ you make AFTER taxes
How does marital status affect BK? - ANS ✔✔- If you file jointly, more assets are protected
- Legally separated couples can still get some married benefits
How does number of people in the house affect BK? - ANS ✔✔- More ppl in household =
expenses go up
,- dependents rely on you for financial support
Fixed Expenses - ANS ✔✔- rent/mortgage payments
- car payments
- insurance
- HOA fees
Variable Expenses - ANS ✔✔- groceries
- gas
- utilities
Housing Expenses - ANS ✔✔- mortgage/rent
- lot rent
- property taxes
- home repair
- interest on mortgage loans
- HOA dues
- homeowners/renters insurance
Medical Expenses - ANS ✔✔- contacts/glasses
- meds
- office visits
Utilities Expenses - ANS ✔✔- gas
- electricity
- water/sewer
,- heating oil
- garbage collection
- home and cell service
- cable/streaming services
- internet
Tax-Exempt Items - ANS ✔✔- house
- clothes
- retirement
Non-Exempt Items - ANS ✔✔- luxury
- 2nd home
- investments
Transportation Expenses - ANS ✔✔- car payments
- maintenence
- gas
- insurance/ registration
"Other" Expenses - ANS ✔✔- life insurance
- tithing
- pet care/grooming/insurance
Pro-Bono - ANS ✔✔atty takes on client free of charge
Pro-Say - ANS ✔✔client files for BK w/o atty
, Green Path - ANS ✔✔repayment plan company that we suggest to clients
Cash Flow Management - ANS ✔✔a.k.a budgeting
Analyzing net worth, creating a budget, setting short-term and long-term goals
Financial Capacity - ANS ✔✔Capacity based on knowledge, skills, and access to manage
financial resources effectively
6 Components to a Budget - ANS ✔✔- income
- taxes
- fixed expenses
- variable expenses
- periodic expenses
- discretionary expenses
Periodic Expenses - ANS ✔✔Costs that occur on a irregular but predictable basis, unlike fixed
expenses which happen monthly
Ex: tuition payments, car registration, and property taxes
Discretionary Expenses - ANS ✔✔Non-essential costs i.e. "wants" not "needs"
Ex: dining out, going to the movies, gym memberships, traveling for leisure
Things you need before creating a budget - ANS ✔✔- recent pay stubs
- records of other sources of income
- copies of household bills, like utilities
- records of all outstanding debts (a credit report may be the best source for this)
