Modification History
Not Applicable
Unit Descriptor
Descriptor |
This unit describes the skills and knowledge required to educate clients in basic financial literacy concepts relating to debt and consumer credit |
Application of the Unit
Application |
This unit is designed for application by workers in the community sector who may need to provide basic financial literacy education for client groups Financial literacy education provides targeted information and resources to meet particular client needs Acquisition of financial literacy education competencies alone does not provide sufficient foundation to undertake complex financial literacy education or financial counselling Where financial issues have the potential to become complex, clients should be referred to a qualified financial counsellor |
Licensing/Regulatory Information
Not Applicable
Pre-Requisites
Not Applicable
Employability Skills Information
Employability Skills |
This unit contains Employability Skills |
Elements and Performance Criteria Pre-Content
Elements define the essential outcomes of a unit of competency. |
The Performance Criteria specify the level of performance required to demonstrate achievement of the Element. Terms in italics are elaborated in the Range Statement. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Apply knowledge of the role of credit |
1.1 Demonstrate clear understanding and ability to explain concepts and terminology of credit provided by a financial institution and debt incurred by a borrower 1.2 Compare features of different types of loans or credit facilities 1.3 Identify differences between unsecured and secured loans and explain implications of default on secured and unsecured loans 1.4 Demonstrate understanding of and ability to explain the cost of credit 1.5 Explain basic concepts and uses of documents and paperwork |
2. Identify common debt issues |
2.1 Discuss common types of debt including relationship debt with client and identify its potential implications in relation to specific client situation 2.2 Provide appropriate referrals to assist client to deal with debt issues 2.3 Identify ways to avoid debt as a means to assist client to minimise debt 2.4 Identify range of debt reduction strategies to address client situation |
3. Identify complaints and hardship options to address personal financial issues |
3.1 Identify informal and formal complaints processes to assist client to ensure rights and entitlements are met 3.2 Identify appropriate hardship provisions relevant to client needs |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This describes the essential skills and knowledge and their level required for this unit. |
Essential knowledge : The candidate must be able to demonstrate essential knowledge required to effectively do the task outlined in elements and performance criteria of this unit, manage the task and manage contingencies in the context of the identified work role These include knowledge of:
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Essential skills : It is critical that the candidate demonstrate the ability to:
In addition, the candidate must be able to effectively do the task outlined in elements and performance criteria of this unit, manage the task and manage contingencies in the context of the identified work role These include the ability to:
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Evidence Guide
EVIDENCE GUIDE |
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The evidence guide provides advice on assessment and must be read in conjunction with the Performance Criteria, Required Skills and Knowledge, the Range Statement and the Assessment Guidelines for this Training Package. |
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Critical aspects for assessment and evidence required to demonstrate this unit of competency : |
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Access and equity considerations : |
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Context of and specific resources for assessment : |
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Method of assessment : |
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Range Statement
RANGE STATEMENT |
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The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Add any 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. |
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Client groups may include but are not limited to : |
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Causes of financial exclusion may relate to , for example : |
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Delivery of financial literacy education may include : |
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Paperwork may include : |
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Unit Sector(s)
Not Applicable