Which income source is NOT typically included in the budgeting calculation?

Prepare for the Fincert Certified Personal Financial Counselor (CPFC) Exam with flashcards and multiple-choice questions. Each question is complemented by hints and explanations. Get exam-ready today!

Transfers from savings are not typically included in the budgeting calculation because they are not considered a source of income that is generated from work or regular payments. Instead, transfers from savings represent the movement of already existing funds rather than new income being earned or received.

When creating a budget, it's essential to focus on income that is predictable and repeatable, such as employment salary, alimony payments, and child support. These sources provide regular inflows that can be relied upon for planning expenses and managing overall financial health. Including transfers from savings in a budget could give a misleading view of one's financial situation, as it doesn't represent ongoing income but rather a temporary use of existing funds.

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