CUNA - FiCEP EXAM UPDATED ACTUAL
Questions and CORRECT Answers
Ch 1. Introduction to Financial Counseling - Financial Counseling Myths - CORRECT
ANSWER - • Counselors can provide instant relief.
• Budgeting means denying oneself.
• Budgeting requires an accounting background.
• People in financial trouble spend too much.
• Everyone follows counselors' recommendations.
• The member will be as dedicated to making the plan work as the counselor.
• If a plan fails, it is the member's fault.
• If a plan fails, it means the member can never succeed.
• Counselors can help everyone.
• Everyone wants to pay off debt.
Ch 2. Counseling Credit Union Employees - Program Necessities: Multiple Methods and
Subjects - CORRECT ANSWER - All co-workers are at different life stages and have
different needs, so be flexible.
Ch 3. The Financial Counselor - Essential Counselor Qualities: Control the Interview -
CORRECT ANSWER - Control the interview and other member interactions. Keep the
focus on finances, to achieve results.
Ch 3. The Financial Counselor - Essential Counselor Qualities: Express Empathy for Members -
CORRECT ANSWER - Empathy and Sympathy are not the same.
Empathy involves showing you understand a member's situation, while refraining from excusing
poor financial practices.
Ch 4. How to Change Behavior - Do Not Change Members' Values - CORRECT
ANSWER - Help members change their money attitudes, behaviors, and perceptions, not
their values.
,Values are one's deeply held principles on standards of behavior, a judgment of what is important
in life.
Ch 5. Decision-Making Tools and Techniques - Essential Obligations - CORRECT
ANSWER - List of needs the member must fulfill. Next, the counselor works with the
member to define the non-essentials.
This method can be used to weigh decisions within a spending plan, decide if a purchase is
suitable.
Ch 5. Decision-Making Tools and Techniques - Scaling - CORRECT ANSWER - Scales
are rating systems used to assign numerical rankings to needs, goals, or levels of motivation.
On a scale from 1 to 10, how important is it for you to be able to pay your bills on time?
Ch 6. Finance and Psychology - Extreme Financial Approaches - CORRECT ANSWER -
Money Worship
Dysfunctional responses of money worshippers can include workaholism, compulsive spending,
etc.
Ch 7. Communication Principles and Skills - Paralanguage - CORRECT ANSWER -
Language defined by the manner in which words are said.
Ch 7. Communication Principles and Skills - Hard & Soft Approaches - CORRECT
ANSWER - • Hard approach communicates in ways that are orderly, specific, and
straightforward. Reason and logic tend to dominate the hard approach to communication.
• The soft approach reminds members they are in control, and the counselor is there to offer
support.
Ch 7. Communication Principles and Skills - Tactics to Affirm Information - CORRECT
ANSWER - • Restating/Paraphrasing: These can be used to confirm one • understands
what a member is trying to convey.
, • Summarizing: This helps the counselor highlight key information and remain in control of the
session, especially when operating on a tight schedule.
Ch 8. Successful Money Management Traits - Core Truths if Creating A Stable Financial Future -
CORRECT ANSWER - Not everyone needs debt to live lavishly.
A home mortgage and auto loan are not requirements for every member. While these lending
products can be highly beneficial, they can become a trap if they cost more than a member can
afford in terms of time, money, or energy.
Ch 9. Types of Counseling - Remedial, Preventive, Productive - CORRECT ANSWER -
Remedial: Helps members cope
with debt they cannot afford or poor money
management.
Preventive: Can be used to prepare members for large purchases. Known as "prepurchase
counseling," this form of counseling helps members learn how much they can afford now.
Productive counseling: Helps members
identify the best ways to use their resources
to improve financial status.
Ch 10. The Counseling Process - Action Plan - CORRECT ANSWER - Develop an action
plan:
Covers short- and long-term steps a member will take to achieve goals.
Ch 12. Analyze Expense Issues - Seasonal Variations - CORRECT ANSWER - Utility
costs can rise in the summer and winter. The budget should plan ahead for these variations.
Ch 12. Analyze Debt - Unsecured Debt - CORRECT ANSWER - Unsecured Debt is not
Backed by Collateral
Signature Loan is not secured debt.
Questions and CORRECT Answers
Ch 1. Introduction to Financial Counseling - Financial Counseling Myths - CORRECT
ANSWER - • Counselors can provide instant relief.
• Budgeting means denying oneself.
• Budgeting requires an accounting background.
• People in financial trouble spend too much.
• Everyone follows counselors' recommendations.
• The member will be as dedicated to making the plan work as the counselor.
• If a plan fails, it is the member's fault.
• If a plan fails, it means the member can never succeed.
• Counselors can help everyone.
• Everyone wants to pay off debt.
Ch 2. Counseling Credit Union Employees - Program Necessities: Multiple Methods and
Subjects - CORRECT ANSWER - All co-workers are at different life stages and have
different needs, so be flexible.
Ch 3. The Financial Counselor - Essential Counselor Qualities: Control the Interview -
CORRECT ANSWER - Control the interview and other member interactions. Keep the
focus on finances, to achieve results.
Ch 3. The Financial Counselor - Essential Counselor Qualities: Express Empathy for Members -
CORRECT ANSWER - Empathy and Sympathy are not the same.
Empathy involves showing you understand a member's situation, while refraining from excusing
poor financial practices.
Ch 4. How to Change Behavior - Do Not Change Members' Values - CORRECT
ANSWER - Help members change their money attitudes, behaviors, and perceptions, not
their values.
,Values are one's deeply held principles on standards of behavior, a judgment of what is important
in life.
Ch 5. Decision-Making Tools and Techniques - Essential Obligations - CORRECT
ANSWER - List of needs the member must fulfill. Next, the counselor works with the
member to define the non-essentials.
This method can be used to weigh decisions within a spending plan, decide if a purchase is
suitable.
Ch 5. Decision-Making Tools and Techniques - Scaling - CORRECT ANSWER - Scales
are rating systems used to assign numerical rankings to needs, goals, or levels of motivation.
On a scale from 1 to 10, how important is it for you to be able to pay your bills on time?
Ch 6. Finance and Psychology - Extreme Financial Approaches - CORRECT ANSWER -
Money Worship
Dysfunctional responses of money worshippers can include workaholism, compulsive spending,
etc.
Ch 7. Communication Principles and Skills - Paralanguage - CORRECT ANSWER -
Language defined by the manner in which words are said.
Ch 7. Communication Principles and Skills - Hard & Soft Approaches - CORRECT
ANSWER - • Hard approach communicates in ways that are orderly, specific, and
straightforward. Reason and logic tend to dominate the hard approach to communication.
• The soft approach reminds members they are in control, and the counselor is there to offer
support.
Ch 7. Communication Principles and Skills - Tactics to Affirm Information - CORRECT
ANSWER - • Restating/Paraphrasing: These can be used to confirm one • understands
what a member is trying to convey.
, • Summarizing: This helps the counselor highlight key information and remain in control of the
session, especially when operating on a tight schedule.
Ch 8. Successful Money Management Traits - Core Truths if Creating A Stable Financial Future -
CORRECT ANSWER - Not everyone needs debt to live lavishly.
A home mortgage and auto loan are not requirements for every member. While these lending
products can be highly beneficial, they can become a trap if they cost more than a member can
afford in terms of time, money, or energy.
Ch 9. Types of Counseling - Remedial, Preventive, Productive - CORRECT ANSWER -
Remedial: Helps members cope
with debt they cannot afford or poor money
management.
Preventive: Can be used to prepare members for large purchases. Known as "prepurchase
counseling," this form of counseling helps members learn how much they can afford now.
Productive counseling: Helps members
identify the best ways to use their resources
to improve financial status.
Ch 10. The Counseling Process - Action Plan - CORRECT ANSWER - Develop an action
plan:
Covers short- and long-term steps a member will take to achieve goals.
Ch 12. Analyze Expense Issues - Seasonal Variations - CORRECT ANSWER - Utility
costs can rise in the summer and winter. The budget should plan ahead for these variations.
Ch 12. Analyze Debt - Unsecured Debt - CORRECT ANSWER - Unsecured Debt is not
Backed by Collateral
Signature Loan is not secured debt.
