Financial Wellbeing: Checkpoint 1

Quick checkpoint - five questions on financial wellbeing, mental health, money scripts, lifestyle creep and lending to friends.

Question 1 of 5 Which of these is one of the four elements of financial wellbeing identified by the CFPB?

Owning a luxury car Capacity to absorb a financial shock Earning the highest salary among friends Never using a bank

The four elements are control, capacity to absorb shocks, being on track for goals and freedom of choice.

Question 2 of 5 How are money problems and mental health connected?

They are unrelated Money problems can harm mental health, and mental health problems can make money harder to manage Only rich people experience financial stress Mental health only affects spending on medicine

The link runs both ways and can create a vicious cycle.

Question 3 of 5 What is a money script?

A bank statement An unconscious belief about money, often learned in childhood A type of cheque A government scheme

Scripts like money avoidance or money status shape financial behaviour.

Question 4 of 5 What is a good way to avoid lifestyle creep?

Spend every raise immediately Save at least part of every raise automatically Take more EMIs Stop tracking spending

Increasing savings or SIPs with each raise ensures income growth builds security.

Question 5 of 5 What is a sensible rule for lending money to friends or family?

Always lend whatever is asked Lend only what you can afford to lose, and agree clear terms Never write anything down Always charge high interest

Clear terms and affordability protect both your finances and the relationship.

← Back to Lending Money to Friends and Family Next lesson → Couples and Money: Joint, Separate or Both?

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