Ramsey classroom post test chapter 5

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. Stay off any form of digital media entirely. Never buy anything online. Be aware of when and where you're being marketed to.

Be aware of when and where you're being marketed to.

Personal finance is 20% head knowledge and 80%___________. Behavior Attitude Good intentions Motivation

Behavior

ESSAY QUESTIONS Why are people more likely to overspend when they don't pay with cash?

Cash is a tangible piece of paper with value attached to it. When you spend it, you have less of it in your wallet.

Before you insert your debit card at the gas pump, you should always. . . Pay cash—never use a card at a gas pump Check out the card reader to see if it looks different, loose, or worn Make sure you have enough money in your account Ask the store clerk if there has been a thief here lately

Check out the card reader to see if it looks different, loose, or worn

If you're a victim of card fraud... Wait until the next week to contact your bank Contact your bank immediately Wait for your bank to contact you Call 911 before making any other purchases

Contact your bank immediately

Appreciating who you are and what you have instead of wanting what your friends have is called _______________. Comparison Contentment Gratitude Consumerism

Contentment

It's your right as the consumer to . . . Pitch a fit if you don't like the product you just purchased, and demand a refund Buy whatever you want, as long as you don't go into debt over it Expect a product to live up to the quality promised to you before you purchased it Keep a product even if it malfunctions or has manufacturing issues

Expect a product to live up to the quality promised to you before you purchased it

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

False

When someone steals and uses your debit or credit card info, that's called ______________. Networking Borrowing Fraud Authorized spending

Fraud

List some examples of how a thief would commit card fraud.

Gas station, copy of card numbers

Contentment is hindered by ___________. Immediate gratification Delayed gratification Money principles The Five Foundations

Immediate gratification

Americans spend over $600 a month on ______________. Impulse purchases they didn't plan to buy Entertainment Groceries and eating out Credit card fees

Impulse purchases they didn't plan to buy

Why do stores like mobile pay apps? 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. It's easier for the retail store clerks.

It makes paying easier and faster, so customers are more likely to overspend

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 helps them partner with other businesses. It keeps the consumer from buying more of their product or service.

It makes their name and logo easily memorable for consumers.

What are some tactics that wise spenders use before making a purchase?

Make a plan. Having a financial plan is about more than figuring out how much of your paycheck is left after the bills are paid. ... Save for the short term. ... Invest for the long term. ... Use credit wisely. ... Choose a reasonable rent or mortgage payment. ... Treat yourself. ... Never stop learning.

When using mobile pay, real time records of what you've spent can help you _________? Spend more money Make quicker decisions when buying Make sure you're sticking to your budget Feel good about overspending

Make sure you're sticking to your budget

Why is digital ad spending projected to be $524 billion in 2024?Marketers know that you're on your mobile device more than you're reading newspaper ads or listening to live radio ads. Advertisers are tired of old-fashioned marketing methods. Digital marketing is easier for marketers, so they prefer this method. Other marketing methods cost more.

Marketers know that you're on your mobile device more than you're reading newspaper ads or listening to live radio ads

Why should you never buy the extended warranty? The retailers never keep their promises. Retail items and products rarely break or malfunction. You should buy the extended warranty. It is a smart financial decision. Most retailers will replace or repair the product if it stops working within the first year.

Most retailers will replace or repair the product if it stops working within the first year.

An example of discretionary spending is _______. Utilities and food Transportation Monthly rent Nonessential goods and services

Nonessential goods and services

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

Protect and maintain your purchase

What is the digital marketing strategy that tracks users across the web? Retargeting Native ads YouTube videos Content marketing

Retargeting

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 Discern when to open a retail store credit card and when not to Set up digital wallets and mobile payment

Say no to an unnecessary purchase

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 You can buy happiness Your goals are less important than buying the latest and greatest stuff

The best way to have more money is to have contentment

What is the main goal of a retail customer reward system? To help save customers money. To make customers happy through free products and cash back. To get customers to spend more money in the long run. To create wise customers who make smart money decisions.

To get customers to spend more money in the long run.

The key to contentment is gratitude. True False

True

Which of the following has the lowest risk for getting your card information stolen? Storing your card information online 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

Using your debit card and PIN at a reputable store

Stuff doesn't equal ____. Debt makes people look better off than they ______. Wealth; actually are Investments; should be Happiness; deserve Income; want to be

Wealth; actually are

Creating a budget, having clear money goals, and slowing down to think through a purchase are all practices of a ____________. College student Wise consumer Foolish consumer Free spirit

Wise consumer

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.

You are able to slow down and think through your motives before buying something.

Why is paying for something in cash a better option than mobile pay even if it isn't as convenient? It helps the store clerk when you use cash. You feel the loss of money when you use cash, so you're less likely to overspend. It's easier to part ways with cash, so you're more likely to overspend It isn't a better option. The perks of mobile pay outweigh the downsides.

You feel the loss of money when you use cash, so you're less likely to overspend.

How is contentment—focusing on what you have rather than what you don't have—an important part of being a wise consumer?

You wont buy things that you dont need

How does having a budget help you avoid the traps of digital marketing?

You wont spend more then you have available for the month even if something is being specifically marketed to you.

Explain the perks and downsides of mobile pay.

easier to spend money, more efficiant

What are five marketing strategies that retailers spend half of their annual budget on?

retargeting, content marketing, influencer marketing, snack videos, and native advertising

Convenience is both a perk and a downside of mobile pay. True False

true

Shoe companies can use influencer marketing to build brand recognition to gain credibility and familiarity. True False

true

You won't find contentment by just continually buying stuff. False True

true