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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Discuss place of saving and investing today
   • Discuss impact of increasingly high cost of living in western society, using examples from domestic environment
   • 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
   • Identify and discuss different attitudes to savings and investment and explore own spending habits
2. Understand risk as it relates to saving and investing
   • Use examples to explain concept of risk and risk versus return
   • Determine individual’s risk profile based on current and future requirements and individual’s level of risk aversion
   • Identify, assess and discuss impact of inflation on earnings power of money
3. Develop own savings plan
   • Identify personal savings goals, quantify into dollar amounts and arrange in order of priority
   • Develop personal budget to reveal funds available to contribute towards savings goals
   • 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
   • List documentary requirements, including evidence of personal identity and steps needed to gather necessary documentation
   • Start savings plan, using existing or new financial savings account or product, and monitor for short period of time
   • Make adjustments to savings goal where it is realised that goal is unattainable

Performance Evidence

Evidence of the ability to:

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.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

describe and identify examples of consumer debt

provide examples of financial goals at different stages of life

explain the impact of attitudes and spending habits on reaching financial goals

explain the key features of risk and return concepts in relation to savings and investment

identify and describe the key principles of budgeting

describe the role of budgeting and savings in establishing personal wealth

explain the differences between basic financial products used to maximise savings

describe the role of financial institutions and their basic savings products.

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