Financial Behaviors: Molding Positive

Lorraine received a notification from her bank of suspicious account activity. After clearing up the issue, the bank representative suggests that Lorraine also check her credit report. Lorraine has never checked her credit report before and doesn’t feel that it’s necessary to do so now. This is an example of a habit that could have a negative impact on Lorraine’s finances.

• True

• False

As an individual moves through the Model of Behavior Change, they are unlikely to experience more than one stage at a time.

• True

• False

Terri owns a small business and has always done her own bookkeeping. This year, she plans to work with a professional financial expert to get her business finances in order. How can she prepare for the meeting according to the Model of Behavior Change?

• a) Assess whether she is ready for the change.

• b) Recognize that her behavior has been causing problems.

• c) Gather all her expense reports and tax records.

• d) Modify her lifestyle.

Three years ago, Chris set two goals: to pay off his credit card debt and to start regularly contributing $100 a month to a savings account. Today his credit cards have a zero balance and he currently has $5,000 in savings. The following except _____ are reasons behind Chris’s success at improving his financial health.

• a) he realized the need for a change

• b) he committed to contributing to a savings account

• c) he paid off his credit card debt

• d) he cut up his credit cards to avoid using them

Angel and Ashley are planning their wedding. They want a nice celebration, but are concerned about starting their marriage off on the right foot financially. How can they ensure that they will not spend too much on the festivities? More than one answer may be correct.

• a) Set a financial goal for the wedding.

• b) Prepare a list of items they need for the event.

• c) Identify wedding suppliers who can work within their budget.

• d) Assess their financial capabilities to pay for the wedding.

Meredith has been contributing to a retirement plan for about two years. She received a raise this month and is now reevaluating her finances to determine whether she can contribute more toward her retirement. This is an example of which stage of the Model of Behavior Change?

• a) Pre-contemplation

• b) Contemplation

• c) Preparation

• d) Action

It’s important to remember that when you make financial decisions that don’t move you closer to your longer-term goals, those decisions actually will be a source of future financial pain.

• True

• False

Which steps should an individual in the Pre-contemplation stage of the Model of Behavior Change take to move toward a more secure financial future? More than one answer may be correct.

• a) Talk with a trusted family member or friend about their emotions toward money.

• b) Spend less money on nonessential items and contribute more to savings.

• c) Evaluate the positive habits they’ve developed and take pride in financial achievements.

• d) Think about how money could improve their current life situation

Which steps should individuals in the Maintenance stage of the Model of Behavior Change take to sustain their financial security? More than one answer may be correct.

• a) Identify financial aspects of their life where they could use more information.

• b) Identify ways to avoid falling back into poor financial habits.

• c) Make a list of potential investment opportunities.

• d) Regularly track account balances, credit reports, and investments.