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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. 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. |
The different groups who may budget may include: | familiesgovernments individuals:singlemarriedelderlystudentstourists, travellers. |
Different stages of life may include: | approaching and during retirementbuying your first homemoving out of homestarting a familystudying. |
Financial goals may include: | accumulating a set amount of money by a specified date in the future for the purposes of:purchasing assetsfinancing holidays, educational expenses, home renovations and other known future expensesestablishing a deposit for an investment such as a home or investment propertyaiming to repay existing debts and be debt freeestablishing a regular savings planhandling income and expenditure responsibly and avoiding financial difficulties. |
Obstacles that might prevent financial goals being achieved may include: | being unemployed, particularly long term unemployedinsufficient income to afford items that are beyond the individual's meansunexpected circumstances such as:losing a job falling ill not being able to work. |
Behaviours and skills required for successful budgeting may include: | controlled spendingdisciplined approach to moneyorganisational skillsrecord keeping skills. |
Budget refers to: | a calculation of all projected income and expenditure for period of time (e.g. on a weekly or monthly basis)showing all projections versus actual income and expenses for the period and monitoring variances. |
A spreadsheet may: | be simple or complex depending upon the extent of the individual's financeshave one section for recording all money received as income and another section for expenses both variable and fixedhave 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: | interest on investments, dividendsproceeds from sale of assetssocial security benefits, pensions, allowances, child assistancewages, commission, bonuses, tips. |
Fixed expenses may include: | fees: school and university fees bank feesinsuranceloan repayments (if loan is based upon fixed interest rates) such as: personal loanscar loanscredit card debts Higher Education Contribution Scheme (HECS)public transportratesrentsubscriptions to:magazines newspapers clubstravel including public transport, petrol |
Variable expenses may include: | car maintenanceliving expenses such as:food clothing medicalloan repayments if loan is based upon variable interest ratesmiscellaneous expenses such as: gifts recreation entertainment finesmobile telephonemortgage repaymentsutilities such as: watergas electricitytelephone. |
Ways to reduce expenses may include: | comparing prices for essential itemsmonitoring use of utilities such as electricity, gas and watermoving back homereducing expenditure on discretionary items such as expensive clothing, magazines, eating out share accommodationusing cheaper modes of transport. |
Ways to increase income may include: | combining part-time work with studyinginvestigating eligibility for student allowances or other relevant government benefitstaking on a part-time job or holiday work. |
Handy hints may include discussing: | how to avoid getting into financial difficultieshow to minimise fees and charges imposed by financial institutionshow to use credit card debt effectivelythe problems of impulsive buying, particularly when under peer pressureways to cut back on spending or change negative spending habits. |