General Principles of Financial Planning

2022 CFPⓇ Board Principal Knowledge Topics and Learning Objectives

• Explain the Code of Ethics and Standards of Conduct, which are ethical and professional ideals for CFPⓇ professionals. (A.1.b)
• Describe the personal financial planning process as defined by the Practice Standards for the Financial Planning Process (Section C- Code of Ethics and Standards of Conduct). (B.7.a)
• Construct statements of financial positions and cash-flow statements as applied to clients consistent with sound personal accounting standards. (B.8.a)
• Identify opportunities and challenges related to a client’s cash inflows and outflows and make recommendations to assist the client in meeting their current needs and long-term financial goals. (B.9.a)
• Evaluate the financial effects of reducing or increasing debt on the client’s probability of success in meeting short-term and long-term goals. (B.10.f)
• Apply economic concepts and measures in making financial planning recommendations. (B.11.a)
• Calculate present value and future value of single amounts, annuities, annuities due, uneven, and serial payments. (B.12.a)
• Calculate the dollar amount needed to meet the education goals of the client. (B.13.a)
• Recommend appropriate education savings vehicles given tax implications, dollar amount of savings needed, and the client’s preferences and situation. (B.14.b)
• Evaluate the client’s qualifications for various types of financial aid as part of an education plan. (B.15.b)
• Evaluate and recommend the availability of and qualifications for gift tax exclusions for the client’s gifting goals. (B.16.b)
• Explain how a client’s values, including cultural and religious values and attitudes may impact their goals and the financial planning process. (H.65.c)
• Identify how cognitive biases and heuristics can impact financial decision-making. (H.66.a)
• Identify areas of potential financial conflict between spouse and/or family. (H.67.c)
• Explain the applications of counseling theory to financial planning practice. (H.68.a)
• Assess the components of communications, including verbal and non-verbal communications. (H.69.a)
• Analyze how different types of financial or economic crises impact clients (e.g., market correction or economic decline). (H.70.b)

The complete CFPⓇ Certification Learning Objectives, for this and other CFPⓇ courses, may be reviewed [HERE](https://www.cfp.net/-/media/files/cfp-board/cfp-certification/2021-practice-analysis/2021-cfp-certification-learning-objectives.pdf).