WorksheetsPF Ch.5
Total questions: 27
Worksheet time: 14mins
Why do stores like scan and go options, apps, and one-click purchases?
It's harder for customers to pay, so they end up saving money.
It makes paying easier and faster, so customers are more likely to overspend.
Digital pay is the way of the future, and retail stores like being ahead of the times.
It's easier for the retail store clerks.
When someone steals and uses your debit or credit card info, that's called .
Networking
Borrowing
Authorized spending
What does it mean to develop power over purchase?
You are powerless in the face of an impulse purchase.
You can make decisions very quickly when it comes to purchasing items.
You are able to slow down and think through your motives before buying something.
You have power to purchase whatever you want, and you do so.
To think big picture, you need to understand that . . .
The best way to have more money is to have contentment.
The best way to be content is to have more money.
Your goals are less important than buying the latest and greatest stuff.
You can buy happiness.
Companies use marketing to get your prefrontal cortex offline so you'll be vulnerable to impulse purchases.
True
False
The key to contentment is gratitude.
True
False
Part of being a smart consumer is being able to ________
Say no to an unnecessary purchase
Use a credit card for the points without going into debt
Set up digital wallets and mobile payment
Discern when to open a retail store credit card and when not to
Why is paying for something in cash a better option than a virtual payment even if it isn’t as convenient?
If you make spending less convenient, you're less likely to buy things you don't need.
It’s easier to part ways with cash, so you're more likely to overspend.
It isn't a better option. The perks of virtual payments outweigh the downsides.
It helps the store clerk when you use cash.
You won’t find contentment by just continually buying stuff.
True
False
Why does brand recognition help businesses?
It makes their name and logo easily memorable for consumers.
It helps the business recognize their own logo.
It keeps the consumer from buying more of their product or service.
It helps them partner with other businesses.
It's okay to make an online purchase if you're on unsecured Wi-Fi, as long as you log off as soon as you're done.
True
False
Appreciating who you are and what you have instead of wanting what your friends have is called .
Comparison
Contentment
Consumerism
Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a .
College student
Foolish consumer
Free spirit
What is one way to practice power over purchase?
Spend more money
Make quicker decisions when buying
Make sure you're sticking to your budget
Pay with credit cards to earn rewards
Which of the following has the lowest risk for getting your card information stolen?
Handing your card over to a server at a restaurant.
Making an online purchase on an unsecured site
Using your debit card and PIN at a reputable store
Storing your card information online
Shoe companies can use influencer marketing to build brand recognition to gain credibility and familiarity.
True
False
Reading the owner's manual, using the product as intended, and keeping the receipt are ways to . . .
Protect and maintain your purchase
Go into debt over an item
Think through a purchase
Avoid regretting an impulse purchase
What three questions is the brain always asking?
Am I safe? What are my surroundings? What are my thoughts?
Am I safe? Do I belong? Does this feel good?
Can I buy it? Should I buy it? Will I buy it?
Am I nervous? Am I mad? Am I scared?
Since marketers have sophisticated technology and plans to get your money, what can you do to make sure you don’t fall into their trap?
Make snap decisions to buy products.
Be aware of when and where you’re being marketed to.
Stay off any form of digital media entirely.
Never buy anything online.
If you’re a victim of card fraud . . .
Contact your bank immediately
Wait until the next week to contact your bank
Wait for your bank to contact you
Call 911 before making any other purchases
Contentment is hindered by .
Delayed gratification
Money principles
The Five Foundations
Contentment—focusing on what you have rather than what you don't have—is an important part of being a wise consumer because it:
helps you avoid unnecessary purchases and appreciate what you already own.
encourages you to spend more money on things you don't need.
makes you dissatisfied with your current possessions.
leads you to ignore your financial goals.
Retailers spend half of their annual budget on which five marketing strategies?
Advertising, promotions, digital marketing, in-store displays, loyalty programs
Product development, logistics, staff training, legal fees, insurance
Research and development, manufacturing, warehousing, IT support, security
Customer service, accounting, maintenance, procurement, transportation
Examples of how a thief would commit card fraud include:
Stealing card information to make unauthorized purchases
Depositing money into the victim's account
Reporting the card as lost to help the owner
Using the card only for legal transactions
Two questions smart spenders ask before making a purchase are:
Do I really need this? Can I afford it?
Is it the most expensive option? Will it impress others?
Is it on sale? Can I return it easily?
Will my friends like it? Is it a new product?
People are more likely to overspend when they don't pay with cash because:
It is harder to keep track of spending without physical money.
Cashless payments offer more discounts.
People forget their budgets when using cash.
Cash payments are slower than digital payments.
Having a budget helps you avoid the traps of digital marketing by:
Limiting unnecessary spending and keeping you focused on your goals.
Encouraging you to spend more on every advertisement you see.
Making you ignore all digital marketing opportunities.
Allowing you to buy anything you want online without concern.
