Assessor Resource

FNSFLT202A
Develop and use a savings plan

Assessment tool

Version 1.0
Issue Date: May 2024


This unit has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations in order 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.

This unit describes the performance outcomes, skills and knowledge required to develop and implement a savings plan to achieve identified goals, including identifying savings goals, understanding the role of the savings plan, the risk/return relationship and how to determine appropriate savings vehicles to maximise savings.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

communication skills to:

clearly explain personal budgeting and savings plans

use questioning to develop clear understanding

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

calculate interest and surplus or deficit funds

use a calculator

use internet information

literacy skills for interpreting relevant information

learning skills to maintain knowledge of budgeting and saving techniques

Required knowledge

principles of budgeting

role of budgeting and savings in establishing personal wealth

understanding of the financial institutions and their savings products

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.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
The impact of increasingly high cost of living in western society is discussed using examples from the domestic environment 
Increasing levels of consumer debt in Australia are discussed with reference to relevant current issues 
The importance of setting financial goals and developing a saving and investment plan at different stages of an individual's life is analysed and discussed 
Different attitudes to savings and investment are analysed and discussed and the individual's own spending habits are explored 
The concept of risk and risk versus return is explained and demonstrated 
An individual's risk profile is determined based on current and future requirements and the individual's level of risk aversion 
The impact of inflation on the earnings power of money is identified, assessed and discussed 
Personal savings goals are identified and quantified into dollar amounts and arranged in order of priority 
A personal budget is developed to reveal funds available to contribute towards savings goals 
The range of financial product options available to maximise earnings on savings are investigated and the most appropriate is selected according to own requirements 
The requirements to open an account and provide evidence of personal identity are researched and steps taken to gather the necessary documentation 
Relevant savings accounts or other investigated financial products are opened and the savings plan implemented and monitored for a short period of time 
Adjustments to the savings goal are made where it is realised that the goal is unattainable 

Forms

Assessment Cover Sheet

FNSFLT202A - Develop and use a savings plan
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSFLT202A - Develop and use a savings plan

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: