Financial Counseling Certification Practice Exam 2026 – Complete Prep Guide

Question: 1 / 400

What is a result of poor financial planning?

Increased savings

Debt accumulation

Poor financial planning often leads to debt accumulation because individuals may not effectively manage their income and expenses. When there is a lack of a structured budget, people are more likely to overspend or overlook essential financial obligations. This can result in relying on credit to cover necessary expenses, which contributes to building debt over time.

Additionally, without a solid financial plan, individuals may not prioritize saving or investing, leading to a situation where they must resort to loans or credit cards to handle day-to-day expenses or unforeseen issues. Consequently, they find themselves in a cycle of debt that can be difficult to break without proper financial management.

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Investment growth

Improved credit score

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