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.
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.
Budgeting refers to:
budget showing all projections versus actual income and expenses for the period developed, implemented and monitored
calculation of all projected income and expenditure for period of time (e.g. over a weekly or monthly basis).
Behaviours and skills required for successful budgeting may include:
controlled spending
disciplined approach to money
organisational skills
record keeping skills.
Income and expenditure may include:
income:
interest on investments, dividends
proceeds from sale of assets
social security benefits, pensions, allowances, child assistance
wages, commission, bonuses
expenditure:
insurance
living expenses such as:
food
clothing
rent
medical
loan repayments such as:
personal loans
car loans
credit card debts
Higher Education Contribution Scheme (HECS)
miscellaneous expenses such as:
gifts
tobacco
recreation
entertainment
mortgage repayments
rates
travel costs including:
petrol
public transport
utilities such as:
water
gas
electricity
telephone.
Budgeting tools may include:
budget worksheets for planning for payment of future expenses
savings plan.
Strategies and tips may include:
how to use credit card debt effectively
information on minimising fees and charges
strategies to curb impulse buying
ways to cut back on spending or modify negative spending habits.

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:
provide practical and relevant assistance to customers in developing personal budgets in order to better manage their finances
use high level communication and interpersonal skills for explaining and demonstrating the purpose and use of budgets
maintain up-to-date knowledge of basic savings and investment strategies useful in the achievement of short, medium and long term financial goals.

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