AFC Study Guide 2026
Everything you need to pass the AFC exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 AFC Exam Format at a Glance
📚 AFC Topics to Study (45)
✍️ Sample AFC Questions & Answers
1. What distinguishes financial counseling from financial coaching?
Financial counseling traditionally addresses immediate problems and remedial needs, while coaching focuses on helping clients achieve goals from a stable baseline.
2. A client dies without a will. What legal process determines how their assets are distributed?
When someone dies intestate, the probate court applies state intestacy laws dictating distribution based on a statutory hierarchy of heirs.
3. What is a target-date fund?
A target-date fund is a professionally managed investment fund designed to simplify retirement planning. It automatically adjusts its asset allocation, becoming more conservative as the investor approaches their specified retirement 'target date.' This means it starts with a higher allocation to stocks and gradually shifts towards bonds as the target date nears.
4. What is predatory lending and what warning signs should a financial counselor help clients identify?
Predatory lending involves unfair, deceptive, or abusive loan terms designed to benefit the lender at the borrower's expense.
5. A client's auto insurance shows 100/300/100 liability coverage. What do these numbers represent?
The split-limit format represents per-person bodily injury, per-accident bodily injury, and per-accident property damage liability limits.
6. A 60-year-old is evaluating long-term care insurance. What factor most significantly impacts premium cost?
Age at purchase is the most significant premium factor, with costs increasing substantially each year due to increased likelihood of needing care.