Understanding and Changing Habits Quiz

What percentage of our daily activities are habits?

• 60%

• 40%

• 20%

• 80%

Why are bad habits around money hard to tackle?

• Because they are hardwired in the brain

• Because they are not triggered by cues

• Because they are easy to break

• Because they are not formed by routines

What is the location in the brain where habits are formed?

• Cerebellum

• Striatum

• Hippocampus

• Amygdala

What is the magic of compound interest?

• Interest that compounds daily

• Interest that compounds continuously

• Interest that compounds monthly

• Interest that compounds annually

What stage of change involves denial of the need to change a habit?

• Contemplation

• Action

• Termination

• Preparation

What is a good way to implement new financial habits?

• Rely on others to make changes for you

• Never make any changes

• Do one change at a time

• Make multiple changes at once

How can you support forming a new habit?

• Ignore it completely

• Rely on external factors

• Tell friends and family

• Keep it to yourself

What is the first step in changing a financial habit?

• Ignoring the problem

• Recognizing the need for change

• Changing everything at once

• Blaming others for the problem

What is the impact of high interest rates on debt over time?

• It reduces the total amount of debt

• It has no impact on the debt

• It increases the total amount of debt due to compound interest

• It changes the debt into savings

What is the role of rewards in habit formation?

• Rewards are not important in habit formation

• Rewards can reinforce a habit

• Rewards can break a habit

• Rewards have no role in habit formation