Google Links

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

Elements and Performance Criteria

1. Identify extent of clients’ financial awareness
   • Identify and clarify client understanding of financial system, role of financial institutions in the modern economy and awareness of what money is and how it is exchanged with clients where necessary
   • Clarify relevant aspects of clients’ own financial situations and discuss areas of concern
2. Discuss methods available for spending and saving money
   • Identify and discuss options available for purchase of goods and services with clients to determine advantages and disadvantages
   • Identify necessity and means of opening and operating a bank account, and range of accounts available for holding and saving money, and discuss advantages and disadvantages of each with clients
   • Discuss range of methods to access funds and address queries with clients
   • Discuss importance of record-keeping for tax purposes and individual money management with clients
3. Discuss basic money management principles
   • Explain benefits and means of developing a savings plan and strategy, and role of budgeting, and show clients how to compile and implement a budget
   • Explain relationship between risk and return to clients in clear language
   • Discuss techniques for evaluating alternative financial products and risks associated with some forms of financial products with clients in relation to their situations
4. Discuss role of other forms of savings and investment options
   • Discuss role and benefits of insurance as a means of protecting against events of risk with clients
   • Explain role of superannuation and retirement planning, including superannuation contributions covering life and permanent disability insurance to clients
   • Discuss with clients ways in which they can provide for own future requirements
5. Identify extent of clients’ financial awareness
   • Identify and clarify client understanding of financial system, role of financial institutions in the modern economy and awareness of what money is and how it is exchanged with clients where necessary
   • Clarify relevant aspects of clients’ own financial situations and discuss areas of concern

Performance Evidence

Evidence of the ability to:

assess clients’ existing level of financial literacy to determine areas of need or concern

use clear language and effective communication techniques to build rapport and explain basic financial literacy principles and knowledge to clients.

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

---

Knowledge Evidence

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

identify key aspects of clients’ own financial situations to determine relevant information

outline options for purchasing goods and services

explain the advantages and disadvantages of a range of accounts available for holding and saving money

describe key features of different types of insurance

describe key requirements of relevant industry codes of practice and legislation relating to privacy, consumer credit and protection, and debt recovery

identify and explain roles and relationships between participants in the Australian financial services industry, including banks and other financial intermediaries.

---