Financial Counseling Certification

Financial Counseling Certification what is the definition of debt? A. Debt is the amount you save B.Debt is the amount you owe C.Debt is the amount you can borrow D.Debt is the amount you spend1 - ✔✔B What are the ...

Financial Counseling Certification what is the definition of debt? A. Debt is the amount you save B.Debt is the amount you owe C.Debt is the amount you can borrow D.Debt is the amount you spend1 - ✔✔B What are the housing market conditions that indicate a real estate "bubble"? A. Housing Values stagnate as consumer income rises. B.Consumer income rises faster than housing values. C.Both housing Values and consumer income are stagnant. D.Housing values rise faster than consumer income. - ✔✔D How do rising interest rates impact household budgets? A. They have no impact on household budgets. B. They increase costs for loans and mortgages. C. Costs are unchanged for loans and mortgages. D. They decrease costs for loans and mortgages. - ✔✔B Select the best description of members who fall into the category of "spending too much." A. They prefer to hire others to perform unpleasant tasks. B. They fail to track spending and don't separate wants from needs. C. They often order from catalogs. D. They often use cash to pay for purchases. - ✔✔B. They fail to track spending and don't separate wants from needs. Identify a common statement made by members who fall into the "saving too little" category. A. " I don't need a savings account because I make monthly deposits to my 401(k)" B. I save part of every paycheck. C. Id rather save until I have the money to buy the things I want than pay interest on loans. D. Waiting until I have the money to buy something I really want makes it feel special. - ✔✔A. " I don't need a savings account because I make monthly deposits to my 401(k)" What is the "drug of choice" for consumers who regularly buy items they don't need? A.Food B.Sleep C.Consumption D.Television - ✔✔C.Consumption Select a problem often exhibited by consumers who can be characterized as "spending too much." A. They save until they can afford to buy what they need. B. They buy items they want on credit, instead of waiting until they have saved the money they need. C. They can always tell the difference between wants and needs. - ✔✔B. They buy items they want on credit, instead of waiting until they have saved the money they need. Which practice marks members who tend to carry too much debt? A. They see each new debt in terms of the minimum payment: its only $75 a week. B. They are willing to make sacrifices to become debt-free. C. They focus on the total debt owed. D. They always read the fine print on loans and CC offers. - ✔✔A. They see each new debt in terms of the minimum payment: its only $75 a week. What qualities are displayed by members who are trapped in the mom and dad syndrome? A. They pass along their parents' financial lesson to their own children. B. They continually rescue their parents from financial mistakes. C. They rely on their parents for money long after they reach adulthood. D. They refuse to accept help or advice from their parents or anyone else. - ✔✔C. They rely on their parents for money long after they reach adulthood. Chapter 2 What happens when parents fail to teach their children about good financial practices? A. The children never repeat their parents' mistakes. B. The children don't know how to manage spending, savings, and debt. C. The children always develop excellent financial habits on their own. D. The children do poorly at school. - ✔✔B. The children don't know how to manage spending, savings, and debt. List the 5 sources that influence most consumers' financial practices. - ✔✔1.Parents 2.Society/ peer pressure 3.Creditors 4.Lenders 5.Learned Patterns How do people live when they are caught in the "earn/spend/earn/spend' money cycle? A. They live in a manner that allows them to build a healthy savings account. B. They live within their means. C. They follow a monthly budget. D. They live paycheck to paycheck. - ✔✔D. They live paycheck to paycheck. Identify the most desirable type of money cycle. A. Earn/spend/borrow/spend B. earn/spend/earn/spend C. earn/save/spend D. earn/spend/save - ✔✔C. earn/save/spend What is the best tactic for helping members who are in the "earn/spend/earn/spend" money cycle? A. Each paycheck must be divided into specific categories, including savings and debt. B. Each paycheck must be used to pay down debt. C. Each paycheck must e turned over to a responsible party who can make sure the bills are paid. D. Each paycheck should be divided among family members and their individual needs. - ✔✔A. Each paycheck must be divided into specific categories, including savings and debt. How can you help change the habits of consumers in the "earn/spend/save" cycle? A. Encourage them to focus on spending before saving. B.Give them a reason to save that helps them see the benefits of changing their habits. C. Help them recognized that they can find money to save without changing their habits or lifestyle. D. Let them continue placing savings low on priority list. - ✔✔B.Give them a reason to save that helps them see the benefits of changing their habits. Why do consumers in the "earn/spend/borrow/spend" cycle confuse wants from needs? A. They believe a high standard of living is a privilege, not a right. B. They believe they deserve whatever they want without waiting for it. C. They believe its never acceptable to borrow to support their standard of living. D. They believe that strong consumer borrowing is necessary to support the American way of life. - ✔✔B. They believe they deserve whatever they want without waiting for it. Which statement best describes the effect money troubles have on stress levels? A. They cause less than half of the stress in our lives. B. They have little impact on our enjoyment of life. C. They cause more stress in relationships than sex or lack of free time. D. They rarely impact stress. - ✔✔C. They cause more stress in relationships than sex or lack of free time. How does ongoing use of credit card typically impact spending for members with financial problems? A. It helps the member monitor their spending level. B. It increases spending because using a credit card doesn't feel like spending money. C. It makes it easier for the member to save money at the end of the month. D. It decreases spending because it provides a monthly list of purchases. - ✔✔B. It increases spending because using a credit card doesn't feel like spending money. what is the first step the counselor should take to find out how a couple handles finances in their relationship? A. Find out who pays the bills and puts money in savings. B. Find out who makes the most money. C. Find out when they expect to retire. D. Find out what goals they have set. - ✔✔A. Find out who pays the bills and puts money in savings.