What is one of the warning signs of financial addiction?

Prepare for the CUNA Financial Counselor Exam. Use flashcards and multiple choice questions to study, with hints and explanations included. Ace your exam with thorough preparation!

Frequent debit or credit charges at convenience stores is a significant warning sign of financial addiction. This behavior often indicates impulsive spending habits, where an individual may be using small, seemingly insignificant transactions as a coping mechanism or to achieve temporary satisfaction. Such habits can lead to a cycle of financial instability, where the individual may not be mindful of their overall budget or financial well-being.

In contrast, consistent savings and frequent investment, as well as regular income from diversified sources and high performance in investment portfolios, are signs of a healthy financial mindset. These behaviors reflect careful planning, disciplined saving, and a strategic approach to managing money, all of which are contrary to the patterns typically associated with financial addiction.

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