Test 2 Flashcards
Fast, slow, and develops over time
Decision making styles
- central satellite
- chain
- decision tree
3 models of decision making
Knowing what to do without having to go the though the rational process
The role of intuition in decision making
Individual you don’t have to worry about how it will affect other family members or take into account of their opinions.
Individual decision making vs. family decision making
- accommodation
- consensual
- de facto
3 categories of family decision making
Problem- questions or situations that present difficulty of risks
Decision- conclusions or judgement about some issue or matter
Problems vs. decisions
Detailed strategy worked out ahead of time for how you will reach your goal or result
Attributes of a good plan
- directional
- contingency
- strategic
3 types of plans
Planning is proactive what you do ahead of time not reactive
Proactive/reactive planning
External and internal noise
Interference with communication
1) speak calmly
2) take turns and do not interrupt
3) listening
4) ask questions—> be clear
5) advance notice with giving new information
Keys to effective communication
Show that you are paying attention with body language, eye contact, Marie comments, take notes, and ask questions
Being an effective listener
1) critical
2) reflective or empathic
3) informational
4) pleasurable
4 types of listening
Verbal- words
Non-verbal- anything else
Verbal vs. non-verbal communication
Everyone’s opinion and how it will affect everyone
Particular characteristics of family communication
Becoming exhausted with the activity of communication
Interaction fatigue
Ordering Threatening Criticizing Analyzing Interrogating
Avoiding communication conflicts
Men- offer solutions
Women- talk it out
Communication styles of men and women
Gross
Disposable
Discretionary
3 types of income
Determine by subtracting liabilities from assets
Net worth
Income and expenditures
Components of a budget or spending plan
Setting money aside for future use
Saving
Committing money to productive use
Investing
- Have enough cash for daily and monthly expenses.
- you have a savings fund (3-6 months pay) for emergencies
- all credit cards paid off
- you have the insurance you need to protect you from major risks to your finances
Prerequisites to investing
Stocks Bonds Mutual funds Real estate IRAs, retirement plans
Most common types of investments —know each
- quality
- acceptance
- flexibility
- clarity
Characteristics of good decision making
