1.14

Question 1

What is the primary goal of financial management?

Answer 1

Acquiring, saving, and growing necessary funds for a satisfying life now and in the future.

Question 2

What lesson does the fable of the cicada and the ant illustrate?

Answer 2

The importance of preparing for future necessities instead of only focusing on present enjoyment.

Question 3

What can be a consequence of poor financial management?

Answer 3

Excessive debt.

Question 4

List some personal consequences of poor financial management.

Answer 4

• Inability to satisfy needs and wants * Inability to maintain lifestyle choices * Feelings of self-doubt or regret * Stress at home, school, or work * Physical, mental, and emotional illness * Repossession of personal property * Accumulation of excessive debt * Bankruptcy.

Question 5

What are the social consequences of excessive debt?

Answer 5

• Relationship tensions or breakdown * Social isolation * Inability to holiday, travel, or invest with others.

Question 6

What is a garnishee?

Answer 6

A court order allowing an employer or bank to take money from wages or accounts to pay creditors.

Question 7

What is a writ of execution?

Answer 7

A court order allowing a court official to seize and sell property to pay debts.

Question 8

What does bankruptcy entail?

Answer 8

Giving up control of assets and finances for protection from creditors, issued by a court.

Question 9

How did Toni’s debt affect her social life?

Answer 9

She became socially isolated, lost touch with friends and family, and reduced leisure time.

Question 10

What percentage of consumers were overwhelmed by credit card debt in June 2017?

Answer 10

18.5 percent.

Question 11

What are common signs of financial stress?

Answer 11

• High blood pressure * Sleeping difficulties * Tiredness * Mood swings * Loss of appetite * Headaches * Arguing about money * Psychological stress * Withdrawing from people.

Question 12

Fill in the blank: Changes of behavior and mindset can assist those who have been financially stressed to _______.

Answer 12

[recover].

Question 13

What strategies can aid recovery from financial stress?

Answer 13

• Creating a personal budget * Rolling all debts into one loan * Regularly depositing cash into a savings account * Setting aside money for emergencies * Talking about money with those closest * Finding a better plan with a bank or financial institution * Accessing financial assistance.