FICEP 1-26 Flashcards
Chapter 1
Name a couple of financial counseling myths.
- Counseling is for everyone.
- Provides instant relief
- Needs an accounting background
- You must deprive yourself
-It’s the mbr’s fault if they fail - The mbr will be as dedicated as you.
Chapter 2
What are the 4 program necessities for the Credit Union
- Confidentiality
- Understanding - speaking about finances is difficult
- Use multiple methods
- Survey Employees for interest
Chapter 3
What must a counselor strive to maintain during a meeting?
CONTROL of the meeting.
Chapter 3
What are some vital counselor skills that will ensure a productive meeting?
- Ask perceptive questions
- look for nonverbal clues observing attitudes and behaviors.
- Establish a full financial picture looking at needs, wants, motivation.
- Make and get an agreement on a budget, motivate mbr’s and make adjustments as needed.
- Make referrals where needed.
- Offer hope
Chapter 4
Values, Attitude, Behaviors, and Perception. Which one should we not question?
Values (deeply held beliefs) - Members may resist suggestions if they think their values are being questioned.
Attitudes (how one thinks and feels), behaviors (actions based on one’s attitudes), and perceptions (how one interprets something) can be changed with the proper approach.
Chapter 5
What are 3 approaches to decision making?
- Essential Obligations - What is essential and non-essential.
- Force-Field Analysis - State a problem, list the forces supporting and against achieving success.
- Cost-Benefit Analysis - Determine the solutions for a situation, list the costs and benefits for each solution, Using the lists rate the likelihood for success and the seriousness of failure for each solution.
Chapter 5
Name 6 techniques a counselor can use to
help a member make decisions.
- Scaling - Rank needs, goals, and motivation.
- Reframing - Restate mbr’s statements.
- Using Exceptions - Talk about a problem long enough to understand it.
- Future pacing - Envision how things could be.
- Quotes and stories - Share stories of similar situations.
- Metaphors - Use sparingly to make effective comparisons.
Chapter 6
What are 4 extreme financial approaches the Klontz money script inventory describes.
- Money avoidance - money is evil
- Money worship - money is happiness
- Money status - Keeping score
- Money Vigilance - Secrecy
Chapter 6
Name the 4 spending Cycles.
- Earn/Spend/Earn/Spend
- Earn/Spend/Borrow/Spend
- Earn/Spend/Save
- Earn/Save/Spend
Chapter 7
What 4 communication principles should you be aware of to ensure your communications are meaningful?
- Understand cultural differences
- Initial impressions matter
- A financial crisis will get a mbr’s full attention
- Should contain contextual elements using your relationship with the mbr.
Chapter 7
What is a Hard and Soft approach?
Hard - Orderly, specific, and straightforward. Directives and orders.
Soft - Uses humor, personal stories, and options.
Chapter 7
What is active listening? And what are 2 ways to affirm the information?
Active listening is combining verbal and nonverbal communications.
1. Paraphrasing - restate in different words
2. Summarizing - summarize key points or issues.
Chapter 8
What are the core truth’s for creating a stable financial future?
- Saving creates possibilities as freedom from debt is priceless.
- Live within your means
- Credit is key
Chapter 9
What are the 3 types of counseling?
- Remedial counseling - Unaffordable debt
- Preventive counseling - plan ahead
- Productive counseling - assets
Chapter 10
What are the 6 steps of the counseling process?
- Collect and analyze mbr’s data
- Establish clear goals
- Develop a spending plan
- Develop a debt repayment plan
- Develop an action plan
- Implement, follow-up, and adjust
Chapter 12
What factors should you consider when analyzing a member’s expenses?
- Predicted cost increase
- Seasonal variations
- Home repair allowance
- Car repair allowance
- Children’s clothing, school.
Chapter 12
What questions should you consider when analyzing the mbr’s debt?
- Who are you borrowing from?
- What is the cost?
- What are you spending the borrowed money one?
- When do you borrow?
- Why do you borrow?
- How much do you owe?
Chapter 12
When analyzing credit, what aspects should you consider?
- Cash flow
- Credit report and score
- DTI
- Net Worth
What are the 5 C’s of credit?
Character
Capacity
Capital
Collateral
Conditions
Chapter 13
When setting goals, why should you consider a member’s age?
Each stage of life will have it’s own obstacles and responsibilities.
Chapter 13
A mbr’s age also matters when teaching what?
Financial literacy. The appropriate topics will vary based on their age so match it to the appropriate life stage.
Chapter 14
What are the 4 cash flow cycles?
Paycheck to paycheck
Monthly
Quarterly
Annually
Chapter 15
What are Payday lenders?
High interest lenders that can compound debt with fees and roll over options. Typically, not reported to the credit buraus.
Chapter 15
What are the 5 debt management options?
Lifestyle adjustment
Consolidation loans
Debt management programs - Repay totally
Debt settlement - settle for a lesser $$
Bankruptcy - Chapter 7 or 13.
