Unit of competency
Modification History
Release |
Comments |
Release 1 |
This version first released with FNS Financial Services Training Package Version 1.0. |
Application
This unit describes the skills and knowledge required to develop and implement a savings plan to achieve identified goals and includes understanding the role of the savings plan, the risk/return relationship and how to determine appropriate savings vehicles to maximise savings. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations to build the financial literacy of learners. The unit may also be used as part of pre-vocational or new apprenticeship programs, or as part of services provided by counselling or advisory organisations.
It applies to individuals who use new ideas and techniques to develop personal financial literacy skills.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Unit Sector
Financial literacy
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Discuss place of saving and investing today |
1.1 Discuss impact of increasingly high cost of living in western society, using examples from domestic environment 1.2 Discuss increasing levels of consumer debt in Australia with reference to current issues 1.3 Identify and discuss importance of setting financial goals and developing a saving and investment plan at different stages of an individual's life 1.4 Identify and discuss different attitudes to savings and investment and explore own spending habits |
2. Understand risk as it relates to saving and investing |
2.1 Use examples to explain concept of risk and risk versus return 2.2 Determine individual’s risk profile based on current and future requirements and individual’s level of risk aversion 2.3 Identify, assess and discuss impact of inflation on earnings power of money |
3. Develop own savings plan |
3.1 Identify personal savings goals, quantify into dollar amounts and arrange in order of priority 3.2 Develop personal budget to reveal funds available to contribute towards savings goals 3.3 Investigate range of financial product options available to maximise earnings on savings and select most appropriate according to own requirements |
4. Implement own savings plan |
4.1 List documentary requirements, including evidence of personal identity and steps needed to gather necessary documentation 4.2 Start savings plan, using existing or new financial savings account or product, and monitor for short period of time 4.3 Make adjustments to savings goal where it is realised that goal is unattainable |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill |
Performance Criteria |
Description |
Reading |
1.1-1.4, 2.2, 3.3, 4.1 |
|
Writing |
1.1-1.4, 2.2, 2.3 |
|
Oral Communication |
1.1-1.4, 2.1, 2.3 |
|
Numeracy |
1.1-1.3, 3.1, 3.2 |
|
Get the work done |
2.1-2.3, 3.1-3.3, 4.1-4.3 |
|
Unit Mapping Information
Code and title current version |
Code and title previous version |
Comments |
Equivalence status |
FNSFLT202 Develop and use a savings plan |
FNSFLT202A Develop and use a savings plan |
Updated to meet Standards for Training Packages Minor edits to reflect AQF level |
Equivalent unit |
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe