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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 will affect performance. The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement. |
The different groups who may budget may include: | individuals: single married elderly students tourists, travellers families businesses Governments |
Different stages of life may include: | moving out of home studying starting a family buying your first home approaching and during retirement |
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 |
Obstacles that might prevent financial goals being achieved may include: | being unemployed, particularly long term unemployed insufficient income to afford items that are beyond the individual's means unexpected circumstances such as losing a job, falling ill and not being able to work |
Behaviours and skills required for successful budgeting may include: | controlled spending disciplined approach to money organisational skills record keeping skills |
Budget refers to: | a calculation of all projected income and expenditure for period of time (eg over a weekly or monthly basis) the budget shows all projections versus actual income and expenses for the period and should be monitored |
The spreadsheet may be: | simple or complex depending upon the extent of the individual's finances at the very least it should have one section for recording all money received as income and another section for expenses both variable and fixed there should then be a section to record the difference between income and expenses for the period, this being the surplus or deficit financial situation for the period |
Sources of income may include: | wages, commission, bonuses, tips interest on investments, dividends social security benefits, pensions, allowances, child assistance proceeds from sale of assets |
Fixed expenses may include: | public transport rent rates insurance loan repayments if loan is based upon fixed interest rates (eg personal loans, car loans, credit card debts, Higher Education Contribution Scheme) fees (school and university fees, bank fees) travel including public transport, petrol subscriptions (eg to magazines, newspapers, clubs) |
Variable expenses may include: | living expenses such as food, clothing, medical utilities such as water, gas, electricity, telephone mobile telephone mortgage repayments loan repayments if loan is based upon variable interest rates car maintenance miscellaneous expenses (eg gifts, tobacco, recreation, entertainment, fines) |
Ways to reduce expenses may include: | share accommodation moving back home reducing expenditure on discretionary items such as expensive clothing, magazines, eating out |
Ways to increase income may include: | taking on a part-time job or holiday work combining part-time work with studying investigating eligibility for student allowances or other relevant Government benefits |
Handy hints may include discussing: | the problems of impulsive buying particularly when under peer pressure ways to cut back on spending or change negative spending habits how to minimise fees and charges imposed by financial institutions how to use credit card debt effectively how to avoid getting into unnecessary financial difficulties |