Midterm Review

Question 1

Exterior Finance

Answer 1

Includes the mechanics of money

Question 2

Interior Finance

Answer 2

Describes how clients relate to money emotionally

Question 3

Other words for interior finance?

Answer 3

Life Planning, Financial Life, Planning, or Financial Planning Done Well

Question 4

What does interior future include?

Answer 4

Dreams and authentic goals

Question 5

What is interior present?

Answer 5

Living authentically with awareness

Question 6

What does interior past consist of?

Answer 6

Beliefs, feelings, and stories

Question 7

What does FCAC stand for?

Answer 7

Financial Consumer Agency of Canada

Question 8

5 Core Components of Financial Well-Being

Answer 8

Financial Behaviors
Economic Factors
Psychological Factors
Social Factors
Knowledge & Experience Factors

Question 9

Overall Financial Well-Being Score Components

Answer 9

Meeting Commitments
Feeling Financially Comfortable
Resilience for the Future

Question 10

True or False - Financial well-being has a stronger relation to behaviors than economic factors

Answer 10

True

Question 11

True or False - Canadians that actively save have higher levels of financial well-being than those with similar incomes who don’t

Answer 11

True

Question 12

What variable was the most strongly associated with higher financial well-being for the “struggling somewhat” group?

Answer 12

Not borrowing for daily expense

Question 13

True or False - Research shows that financial education rarely works

Answer 13

True

Question 14

Values

Answer 14

What a person finds to be important and wants to be doing with his or her life

Question 15

Can values be achieved?

Answer 15

No

Question 16

Wheel of Life Components

Answer 16

Career
Family and Friends
Significant Other/Romance
Fun and Recreation
Health
Money
Personal Growth
Physical Environment

Question 17

Life Satisfaction

Answer 17

Refers to a person’s thoughts about his or her life

Question 18

How is life satisfaction measured?

Answer 18

By the Cantril Ladder

Question 19

Doubling your income will increase your life satisfaction by ___ on a __-point scale

Answer 19

0.5 & 10

Question 20

Emotional Well-Being

Answer 20

Refers to the emotional quality of an individual’s everyday experience

Question 21

Additional Income about _______ had no relationship with how parents felt

Answer 21

$75,000 ($80,000 inflation adj.)

Question 22

Additional income above _______ had no relationship with how people felt

Answer 22

$40,000 ($50,000 inflation adj.)

Question 23

What has the strongest relationship with income?

Answer 23

Life satisfaction

Question 24

Hedonic Treadmill

Answer 24

Humans have a tendency to return to a relatively stable level of happiness despite changes in their circumstances

Question 25

Who created the Hedonic Treadmill Theory?

Answer 25

Dr. Thomas Gilovich

Question 26

8 Principles to Spend Happier

Answer 26

1. Buy experiences 2. Help others 3. Buy small pleasures 4. Buy less unnecessary insurance 5. Pay now and consume later 6. Think about what you're NOT thinking of 7. Beware of comparison shopping 8. Following the herd

Question 27

Future Anhedonia

Answer 27

Believing that our emotional responses will be less intense in the future than in the present

Question 28

Study using magnetic resonance imaging - participants who were given an opportunity to donate money showed activity in the areas of their brains associated with _________ _______

Answer 28

Receiving rewards

Question 29

True or False - There are no studies to date that contradict the finding that emotional well-being does not increase above $75,000

Answer 29

False

Question 30

Why is there a weak relationship between income and happiness?

Answer 30

More Money = More Hours More Hours = More Stress More Money = More Adaptation

Question 31

True or False - People whose main goal require earning money are less satisfied with their lives on average

Answer 31

True

Question 32

True or False - The farther away an experience lies in time, the more abstractly we tend to think about it

Answer 32

True

Question 33

How and when was the modern day credit card born?

Answer 33

In 1949, a wealthy business didn't have cash to pay at a restaurant and was mortified when his wife had to pay

Question 34

True or False - Humans are the most social animals on the planet

Answer 34

True

Question 35

True or False - Humans are the animals whose complex social networks include unrelated people

Answer 35

True

Question 36

4 Questioning Techniques

Answer 36

1. Open-ended 2. Closed-ended 3. Leading questions 4. Deeper dive

Question 37

Open-ended Questions

Answer 37

When, why, who, how, tell me, where, what

Question 38

Most accurate questioning technique

Answer 38

Open-ended

Question 39

Closed-ended

Answer 39

Are you, do you, is this, is that Yes or No Answers

Question 40

Least accurate questioning technique

Answer 40

Closed-ended

Question 41

Question Transformation

Answer 41

Process of turning an open-ended question into a closed-ended question

Question 42

Leading Question

Answer 42

Guiding the client towards a particular answer

Question 43

Deeper Dive

Answer 43

Tell me more.....

Question 44

2 Components to Deeper Dive Question

Answer 44

Projective & Implied

Question 45

Projective (Deeper Dive)

Answer 45

What if? If you? What would?

Question 46

Implied (Deeper Dive)

Answer 46

I wonder if.... You must....

Question 47

3 Components of Listening

Answer 47

1. Paying attention 2. Paying attention to what is heard 3. Interpreting what is heard

Question 48

Components of paying attention to the client

Answer 48

1. Eye Contact 2. Appropriate body language 3. Voice Mannerisms

Question 49

How much eye contact should you make?

Answer 49

70%

Question 50

Types of Body Language

Answer 50

Kinesics & Proxemics

Question 51

Kinesics

Answer 51

Physical movement of body

Question 52

Proxemics

Answer 52

The space or other environmental variables

Question 53

Voice Mannerism Techniques

Answer 53

Pacing & Mirroring

Question 54

Mirroring

Answer 54

Adapt to client's change in tone or volume

Question 55

Transference

Answer 55

A client's feelings and communication patterns are affected by unfinished business

Question 55

Two components of "paying attention to what is heard"

Answer 55

Situational Awareness & Verbal Tracking

Question 56

Countertransference

Answer 56

A planner's feelings and communication patterns affected by unfinished business

Question 57

Financial Socialization

Answer 57

Learning and adopting the beliefs, attitudes, values, and behaviors needed for financial health and personal well-being.

Question 58

Financial decisions are impacted by _________

Answer 58

Attitudes

Question 59

Attitudes are impacted by?

Answer 59

Family Culture Gender Socioeconomic Status

Question 60

Family Systems Theory

Answer 60

All members of the family are connected and a change in one member affects the whole family

Question 61

Emotional Cutoff

Answer 61

Severing of emotional contact with family members to manage unresolved emotional issues

Question 62

Societal Emotional Process

Answer 62

Regulates individual behavior on a societal level

Question 63

Social Learning Theory

Answer 63

Behaviors are learned through observation

Question 64

Implicit Learning

Answer 64

Observations

Question 65

Explicit Learning

Answer 65

Direct instructions

Question 66

Money Genogram

Answer 66

Family tree that identifies the money scripts of members

Question 67

KMSI

Answer 67

Klontz Money Script Inventory

Question 68

Money Scripts

Answer 68

Underlying assumptions or beliefs about money that are partially true and developed in childhood and unconsciously followed through childhood

Question 69

Money Scripts are associated with:

Answer 69

Net Worth Income Debt Socioeconomic status in childhood Financial Behaviors

Question 70

4 Money Scripts

Answer 70

1. Money Avoidance 2. Money Worship 3. Money Status 4. Money Vigilance

Question 71

Money Avoidance

Answer 71

Avoid dealing with money while rejecting personal responsibility for one's own financial health

Question 72

Money Worship

Answer 72

Believe that money = happiness

Question 73

Money Status

Answer 73

Believe that net worth = self worth

Question 74

Money Vigilence

Answer 74

Watchful, alert, and concerned about their finances

Question 75

Most important financial socialization agents for individuals are?

Answer 75

Parents

Question 76

Money disorders of compulsive buying, financial dependence, and financial denial are associated with?

Answer 76

Lower income

Question 77

People who do not know their net worth consistently score higher for _____ _________ scripts than those with lower levels of ____-________ net worth

Answer 77

Money avoidance & Self reported

Question 78

Three Core Styles

Answer 78

1. Individualist 2. Collective Harmony 3. Honor

Question 79

Individualist Culture Demography

Answer 79

Western

Question 80

How is trust built in individualist culture

Answer 80

Between individuals

Question 81

Individualist Culture Communication

Answer 81

Direct, assertive, clear and engaged

Question 82

Men and Women in Individualist Culture are?

Answer 82

Equal

Question 83

Values in Individualist Culture

Answer 83

Openness, transparency, and directness

Question 84

Collective Harmony Culture demography

Answer 84

Eastern culture

Question 85

Values in collective harmony culture

Answer 85

Loyalty, obligation, heritage, respect for elders

Question 86

Relationship types in collective harmony culture

Answer 86

Hierarchical

Question 87

Communication type in collective harmony culture

Answer 87

Subtle, indirect, and diplomatic

Question 88

True or false, collective harmony culture do not avoid conflict and direct confrontation

Answer 88

False

Question 89

Honor Culture demography

Answer 89

LATAM, Mediterranean, India, Middle East

Question 90

How is trust built in honor culture

Answer 90

Slowly

Question 91

What is important in honor culture?

Answer 91

Connections

Question 92

Are men and women treated the same in honor culture?

Answer 92

No

Question 93

Communication style in honor culture

Answer 93

Expressive and dramatic

Question 94

Relationship types in honor culture

Answer 94

Hierarchical

Question 95

How many % of financial planners are white?

Answer 95

80%

Question 96

7 Steps to Culturally Responsive Financial Therapy

Answer 96

- Know your culture - Recognize your privilege - Demonstrate respect - Distinguish between internal and external parts of a problem - Validate oppressive experiences - Do not challenge core culture beliefs

Question 97

ADDRESSING Acronomyn

Answer 97

Age Development Disabilities Religion Ethnic Socioeconomic status Sexual orientation Indigenous heritage National origin Gender