Unit of competency Outline
Date retreived
23/07/2026 12:17 AM AWST
23/07/2026 12:17 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Promote basic financial literacy skills
Promote basic financial literacy skills
Unit of competency
National Code
FNSFLT503A
FNSFLT503A
State Code
D4117
D4117
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
28/07/2014
Field of Education
080101 - Accounting
Original Release Date
28/07/2014
Nominal Hours
30
Description
This unit describes the performance outcomes, skills and knowledge required to develop customer's basic financial literacy skills necessary to make informed financial decisions including the need and purpose of bank accounts, basic savings and investment principles, risk and return, and the role of insurance and superannuation.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Identify extent of customer's financial awareness
- 1.1. Customer's understanding of the financial system, the role of financial institutions in the modern economy and awareness of what money is and how it is exchanged is identified and clarified with the customer where necessary
- 1.2. Relevant aspects of the customer's own financial situation are clarified and areas of concern are discussed
2. Discuss methods available for spending and saving money
- 2.1. Options available for the purchase of goods and services are identified and discussed with the customer to determine advantages and disadvantages
- 2.2. The necessity and means of opening and operating a bank account and the range of accounts available for holding and saving money are identified and advantages and disadvantages of each are discussed with the customer
- 2.3. Range of methods to access funds is discussed and queries addressed with the customer
- 2.4. The importance of record keeping for tax purposes and individual money management is discussed with the customer
3. Discuss basic money management principles
- 3.1. The benefits and means of developing a savings plan and strategy and the role of budgeting is explained and the customer is shown how to compile and implement a budget
- 3.2. Relationship between risk and return is explained to the customer in a plain language
- 3.3. Techniques for evaluating alternative financial products and the risks associated with some forms of financial products are discussed with the customer in relation to their situation
4. Discuss the role of other forms of savings and investment options
- 4.1. The role and benefits of insurance as a means of protecting against events of risk are discussed with the customer
- 4.2. The role of superannuation and retirement planning including superannuation contributions covering life and permanent disability insurance are explained to the customer
- 4.3. Ways in which the customer can provide for own future requirements are discussed with the customer
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Financial institutions include:
banks:
domestic
foreign
building societies
credit unions
Relevant aspects of the customer's own financial situation may include:
age and number of years until retirement
assets and liquidity of assets
earnings per annum
employment status
financial dependence or independence
liabilities
sources of income.
Options to purchase goods and services include:
lay-by
mortgages for housing purchase
paying part cash, part credit
paying total amount in cash
purchasing total amount on credit.
Accounts available for holding and saving money may include:
cash management accounts
cheque accounts
First Home Saver accounts
fixed term deposits
online savings accounts
statement savings accounts.
Advantages and disadvantages of different types of accounts may refer to:
account keeping fees
penalties and other non-government fees and charges
ease of access to funds
minimum opening balance required
rate of interest earned.
Methods to access funds may include:
Internet or online banking
withdrawal at branch
withdrawal via Automatic Teller Machine (ATM).
Techniques may include
asking the financial institution for a detailed list of all establishment, legal, valuation and ongoing fees charged
using the comparison rate to evaluate home loan products.
Insurance may include:
health
home and contents
income protection
motor vehicle
travel.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Financial institutions include:
banks:
domestic
foreign
building societies
credit unions
Relevant aspects of the customer's own financial situation may include:
age and number of years until retirement
assets and liquidity of assets
earnings per annum
employment status
financial dependence or independence
liabilities
sources of income.
Options to purchase goods and services include:
lay-by
mortgages for housing purchase
paying part cash, part credit
paying total amount in cash
purchasing total amount on credit.
Accounts available for holding and saving money may include:
cash management accounts
cheque accounts
First Home Saver accounts
fixed term deposits
online savings accounts
statement savings accounts.
Advantages and disadvantages of different types of accounts may refer to:
account keeping fees
penalties and other non-government fees and charges
ease of access to funds
minimum opening balance required
rate of interest earned.
Methods to access funds may include:
Internet or online banking
withdrawal at branch
withdrawal via Automatic Teller Machine (ATM).
Techniques may include
asking the financial institution for a detailed list of all establishment, legal, valuation and ongoing fees charged
using the comparison rate to evaluate home loan products.
Insurance may include:
health
home and contents
income protection
motor vehicle
travel.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
empathise and build rapport with customers
assess customer's existing level of financial literacy
impart basic financial literacy principles to customers in meaningful ways using plain language.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to financial services product information.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
empathise and build rapport with customers
assess customer's existing level of financial literacy
impart basic financial literacy principles to customers in meaningful ways using plain language.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to financial services product information.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR32 | FNSFLT503 | Promote basic financial literacy skills | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D725 | FNS51811 | Diploma of Financial Services | Qualification |