Elements and Performance Criteria

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.


credit card debt

personal loans (typically to purchase motor vehicles, travel or purchase domestic whitegoods)

store credit

mortgages on residential and investment properties

mobile telephone debt

student loans including the Higher Education Contribution Scheme (HECS)


accumulating a set amount of money by a specified date in the future for the purposes of:

purchasing assets

financing holidays, educational expenses, home renovations and other known future expenses

establishing a deposit for an investment such as a home or investment property

aiming to repay existing debts and be debt free

establishing a regular savings plan

handling income and expenditure responsibly and avoiding financial difficulties


lack interest in or the discipline to save and therefore live from one pay packet to the next

occasionally think about saving but who do not take active steps to save

believe it is essential in order to manage their money and achieve future financial goals


the level of uncertainty associated with a particular savings or investment product


the higher the risk of the investment, the higher the expected return

the lower the risk of the investment, the lower the expected return


the level of risk an individual is comfortable with when investing their money


the percentage change in the Consumer Price Index (CPI) which is a quarterly survey of the retail price of a basket of goods and services consumed by the general population

the inflation rate indicates the cost of living


specific

measurable

achievable

realistic

timely


basic savings account

fixed term deposits

investments in debentures and secured and unsecured stock

cash management trusts

online bank accounts offering higher rates of return


reputation of the financial institution

rate of interest earned

term to maturity

level of risk involved

ease of access to funds

account keeping fees, ongoing fees and charges and other non-Government fees and charges

minimum opening balance required

potential tax implications

locality of the institution

additional services offered

The
Points may comprise:

70 Points:

birth certificate

Passport

Citizenship Certificate

40 Points:

drivers licence

shooters licence

Public Service Employee ID card

Commonwealth or State Government financial entitlement cards (eg pension card)

35 Points:

Land rates

25 Points:

any card on which your name appears including Medicare card or credit card

documents on which your name and address appears including car registration, utility bill, rental slip

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

To achieve competency in this unit, a person must be able to demonstrate:

an understanding of risk and return in relation to savings and investment
the ability to set realistic, measurable, specific and timely financial goals
the ability to calculate amount needed to achieve identified financial goals
the ability to develop a basic savings plan based on surplus income
the ability to explain the differences between basic financial products used to maximise savings

Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts which are applicable to the individual learner and the learning environment

Delivery/assessment relationship to other units:
This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit, or a cluster of units of competency.

Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:
This unit may be assessed in a formal learning environment, in the workplace or within the environment of a related service provider such as counselling or advisory services.

Resources required for assessment:
Assessment of this unit of competency requires access to information about the process of budgeting, current interest rates, savings products, software and other resources relevant to the unit of competency