FFC Behavioral Finance and Coaching Techniques 4

Question 1

Which of the following is a hallmark of a 'money script' as defined in financial therapy?

Accepted Answer

A subconscious belief about money formed in childhood that drives adult behavior

Answer

Money scripts are core beliefs about money, often formed in childhood, that operate below conscious awareness and shape financial behaviors.

Question 2

A client who grew up poor now earns six figures but still feels financially insecure and hoards cash. A behavioral finance coach would most likely address this through:

Accepted Answer

Exploring money scripts and reframing scarcity beliefs

Answer

This pattern suggests a scarcity money script rooted in childhood experience, which coaching can address through exploration and cognitive reframing.

Question 3

What coaching technique involves asking a client to imagine their life five years in the future if they successfully achieve their financial goals?

Accepted Answer

Futuring or visualization

Answer

Futuring or visualization helps clients connect emotionally to their goals by vividly imagining a successful future, increasing motivation.

Question 4

The 'endowment effect' would most likely cause a client to:

Accepted Answer

Overvalue an asset they already own compared to its market price

Answer

The endowment effect causes people to assign higher value to things they own simply because they own them, making it hard to sell or part with assets.

Question 5

In motivational interviewing, 'rolling with resistance' means:

Accepted Answer

Avoiding argument by acknowledging resistance and redirecting without confrontation

Answer

Rolling with resistance involves accepting the client's pushback without arguing, which paradoxically reduces defensiveness and opens the door to change.

(FFC) Financial Fitness Coach Certification Practice Test

(FFC) Financial Fitness Coach Certification Practice Test

FFC Behavioral Finance and Coaching Techniques 4