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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: | families governments individuals: single married elderly students tourists, travellers. |
Different stages of life may include: | approaching and during retirement buying your first home moving out of home starting a family studying. |
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 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 (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 finances have one section for recording all money received as income and another section for expenses both variable and fixed have 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, dividends proceeds from sale of assets social security benefits, pensions, allowances, child assistance wages, commission, bonuses, tips. |
Fixed expenses may include: | fees: school and university fees bank fees insurance loan repayments (if loan is based upon fixed interest rates) such as: personal loans car loans credit card debts Higher Education Contribution Scheme (HECS) public transport rates rent subscriptions to: magazines newspapers clubs travel including public transport, petrol |
Variable expenses may include: | car maintenance living expenses such as: food clothing medical loan repayments if loan is based upon variable interest rates miscellaneous expenses such as: gifts recreation entertainment fines mobile telephone mortgage repayments utilities such as: water gas electricity telephone. |
Ways to reduce expenses may include: | comparing prices for essential items monitoring use of utilities such as electricity, gas and water moving back home reducing expenditure on discretionary items such as expensive clothing, magazines, eating out share accommodation using cheaper modes of transport. |
Ways to increase income may include: | combining part-time work with studying investigating eligibility for student allowances or other relevant government benefits taking on a part-time job or holiday work. |
Handy hints may include discussing: | how to avoid getting into financial difficulties how to minimise fees and charges imposed by financial institutions how to use credit card debt effectively the problems of impulsive buying, particularly when under peer pressure ways to cut back on spending or change negative spending habits. |