Elements and Performance Criteria

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.
Consumer debt may refer to:
credit card debt
mobile telephone debt
mortgages on residential and investment properties
personal loans to purchase:
motor vehicles
travel
domestic whitegoods
store credit
student loans including the Higher Education Contribution Scheme (HECS).
Financial goals may include:
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.
Attitudes to savings and investment differ and may encompass those who:
believe it is essential in order to manage their money and achieve future financial goals
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.
Risk refers to:
the level of uncertainty associated with a particular savings or investment product.
The concept of risk versus return refers to the general truth that:
the higher the risk of the investment, the higher the expected return
the lower the risk of the investment, the lower the expected return.
Risk profile refers to:
the level of risk an individual is comfortable with when investing their money.
Inflation refers to:
the cost of living, indicated by the inflation rate
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.
Goals need to be:
achievable
measurable
realistic
specific
timely.
Product options may include:
basic savings account
cash management trusts
fixed term deposits
investments in debentures and secured and unsecured stock
online bank accounts offering higher rates of return.
Requirements to consider when selecting a financial product for savings or investment may include:
account keeping fees, ongoing fees and charges and other non-government fees and charges
additional services offered
ease of access to funds
level of risk involved
locality of the institution
minimum opening balance required
potential tax implications
rate of interest earned
reputation of the financial institution
term to maturity.
The requirements to open an account include providing personal identification from a range of sources that equate to 100 points which may comprise::

70 points:
birth certificate
passport
citizenship certificate
40 points:
driver's licence
Shooter's licence
Public Service Employee ID card
Commonwealth or State government financial entitlement cards (e.g. 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.

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

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the the range statement
access to and the use of a range of common office equipment, technology, software and consumables
access to information about the process of budgeting, current interest rates, savings products, software and other relevant resources.

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
verbal or written questioning on underpinning knowledge and skills
setting and reviewing simulations or scenarios
group discussion to determine and confirm understanding.

Guidance information for assessment