FICEP STUDY GUIDE V1
• What are the three approaches to decision making that can help a counselor work with a
member?: Essential obligations, force-field analysis, and cost benefitanalysis
• What are six decision making techniques?: Scaling, reframing, using excep- tions, future
pacing, quotes and stories, and metaphors
• What is an example of scaling?: Putting something on a scale of 1-10
• What are the four extreme financial approaches?: Money avoidance, moneyworship,
money status, and money vigilance
• What is money avoidance?: Money is seen as a source of fear or disgust. Avoidearning,
saving, or spending. May give money away.
• What is money worship?: Belief that money is synonymous with happinessand success.
Believe money holds solutions to all problems.
• What is money status?: Associates wealth self-worth.
• What is money vigilance?: The perceived need for secrecy about one's finan-cial affairs .
Tend to avoid buying everything, even things they need
• Paralanguage means:: Language defined by the manner in which words aresaid
• What is a soft approach good for?: Overcoming barriers to communicationand resistance
• What are some tactics to affirm active listening?: Restating/paraphrasing,and
summarizing.
• What are the three types of counseling?: 1. Remedial counseling
2. Preventive counseling
3. Productive counseling
• Remedial counseling is:: Helping members cope with debt they cannot affordor poor
money management
• Preventive counseling is:: Helping members with good financial habits man-age financial
challenges due to life changes
• Productive counseling is:: Helping members identify the best ways to use theirresources to
improve financial status
• What are the six steps to financial counseling?: 1. Collect and analyzemember data
2. Establish clear financial goals and objectives
3. Develop a spending plan
,4. Develop a debt repayment plan
5. Develop an action plan
6. Implement the plan, follow up, and adjust as needed
• What does a budget analysis do?: Helps members determine where theirincome is going
• What period of time should costs be gathered for a budget analysis?: 1year
• Car loans, mortgages, and title loans are what kind of debt?: Secured debt
• Credit cards, signature loans, and payday loans are what kind of debt?: -
Unsecured debt
• What does cash flow show?: How income and expenses are balanced duringa specific
period
Financial counseling myths (10 listed): 1. Counselors can provide instant relief
1. Budgeting means denying oneself
2. Budgeting requires an accounting background
3. People in financial trouble spend too much
4. Everyone follows counselors' recommendations
5. The member will be as dedicated to making the plan work as the counselor
6. If a plan fails, it is the member's fault
7. If a plan fails, it means the member can never succeed
8. Counselors can help everyone
9. Everyone wants to pay off debt
• What are four program necessities for counseling other employees?: Confi-dentiality,
understanding, multiple methods/subjects, and surveying employees
• What are the three essential counselor qualities?: 1. Good listener
• Nonjudgmental
• Control the interview and other member interactions
• What are some vital counselor skills (17 total)?: 1. Ask perceptive questions
2. Observe nonverbal clues
3. Help members access behaviors and attitudes
4. Express empathy for members
5. Assist members to identify needs and wants
, 6. Explore money management skills
7. Assemble a complete financial picture
8. Develop a workable budget
9. Gain agreement on budget with member
10. Suggest workable approaches and potential solutions
11. Motivate members to implement spending plans
12. Combine optimism, enthusiasm, and realism
13. Access progress
14. Offer confidentiality
15. Adjust plans as needed
16. Make referrals when needed
17. Offer hope
What are the four elements to support motivation?: 1. Commitment
2. Confidence
3. Sense of control
4. Composure
• You should help a member change their money , ,
and
, but not their .: You should help a member change their money
attitudes, behaviors, and perceptions, but not their values.
• What is a debt ratio?: Compares total debt to annual income
• What are the five C's of credit?: 1. Character
2. Capacity
3. Capital
4. Collateral
5. Conditions
• What does "character" mean in reference to the 5 C's of credit?: An objec-tive measure of
past behavior likely to affect an individual's financial actions
Examples: Length of residency, length of employment, nature of credit history,frequency of
credit inquires
• What are the three approaches to decision making that can help a counselor work with a
member?: Essential obligations, force-field analysis, and cost benefitanalysis
• What are six decision making techniques?: Scaling, reframing, using excep- tions, future
pacing, quotes and stories, and metaphors
• What is an example of scaling?: Putting something on a scale of 1-10
• What are the four extreme financial approaches?: Money avoidance, moneyworship,
money status, and money vigilance
• What is money avoidance?: Money is seen as a source of fear or disgust. Avoidearning,
saving, or spending. May give money away.
• What is money worship?: Belief that money is synonymous with happinessand success.
Believe money holds solutions to all problems.
• What is money status?: Associates wealth self-worth.
• What is money vigilance?: The perceived need for secrecy about one's finan-cial affairs .
Tend to avoid buying everything, even things they need
• Paralanguage means:: Language defined by the manner in which words aresaid
• What is a soft approach good for?: Overcoming barriers to communicationand resistance
• What are some tactics to affirm active listening?: Restating/paraphrasing,and
summarizing.
• What are the three types of counseling?: 1. Remedial counseling
2. Preventive counseling
3. Productive counseling
• Remedial counseling is:: Helping members cope with debt they cannot affordor poor
money management
• Preventive counseling is:: Helping members with good financial habits man-age financial
challenges due to life changes
• Productive counseling is:: Helping members identify the best ways to use theirresources to
improve financial status
• What are the six steps to financial counseling?: 1. Collect and analyzemember data
2. Establish clear financial goals and objectives
3. Develop a spending plan
,4. Develop a debt repayment plan
5. Develop an action plan
6. Implement the plan, follow up, and adjust as needed
• What does a budget analysis do?: Helps members determine where theirincome is going
• What period of time should costs be gathered for a budget analysis?: 1year
• Car loans, mortgages, and title loans are what kind of debt?: Secured debt
• Credit cards, signature loans, and payday loans are what kind of debt?: -
Unsecured debt
• What does cash flow show?: How income and expenses are balanced duringa specific
period
Financial counseling myths (10 listed): 1. Counselors can provide instant relief
1. Budgeting means denying oneself
2. Budgeting requires an accounting background
3. People in financial trouble spend too much
4. Everyone follows counselors' recommendations
5. The member will be as dedicated to making the plan work as the counselor
6. If a plan fails, it is the member's fault
7. If a plan fails, it means the member can never succeed
8. Counselors can help everyone
9. Everyone wants to pay off debt
• What are four program necessities for counseling other employees?: Confi-dentiality,
understanding, multiple methods/subjects, and surveying employees
• What are the three essential counselor qualities?: 1. Good listener
• Nonjudgmental
• Control the interview and other member interactions
• What are some vital counselor skills (17 total)?: 1. Ask perceptive questions
2. Observe nonverbal clues
3. Help members access behaviors and attitudes
4. Express empathy for members
5. Assist members to identify needs and wants
, 6. Explore money management skills
7. Assemble a complete financial picture
8. Develop a workable budget
9. Gain agreement on budget with member
10. Suggest workable approaches and potential solutions
11. Motivate members to implement spending plans
12. Combine optimism, enthusiasm, and realism
13. Access progress
14. Offer confidentiality
15. Adjust plans as needed
16. Make referrals when needed
17. Offer hope
What are the four elements to support motivation?: 1. Commitment
2. Confidence
3. Sense of control
4. Composure
• You should help a member change their money , ,
and
, but not their .: You should help a member change their money
attitudes, behaviors, and perceptions, but not their values.
• What is a debt ratio?: Compares total debt to annual income
• What are the five C's of credit?: 1. Character
2. Capacity
3. Capital
4. Collateral
5. Conditions
• What does "character" mean in reference to the 5 C's of credit?: An objec-tive measure of
past behavior likely to affect an individual's financial actions
Examples: Length of residency, length of employment, nature of credit history,frequency of
credit inquires
