Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSFLT203 Mapping and Delivery Guide
Develop knowledge of debt and consumer credit

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSFLT203 - Develop knowledge of debt and consumer credit
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to understand the functions and implications of different forms of credit, and the strategies and methods to make appropriate and effective decisions regarding management of personal debt and use of credit facilities. It has wide application and may be used in workplaces, schools, adult and community learning organisations or registered training organisations 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.It applies to individuals who explore new ideas and techniques to build personal financial literacy knowledge.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Identify and discuss role of credit in society
  • Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower
  • Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use
  • Discuss impact of consumer debt on national economy
       
Element: Identify and discuss range of credit options available
  • Identify and compare types of credit facilities used by businesses
  • Identify and compare types of credit facilities used by individuals
  • Identify and discuss differences between unsecured and secured loans
  • Explain implications of default on secured loans to borrower
       
Element: Identify and compare costs of using credit
  • Compare fees and costs associated with different types of credit options
  • Compare features and associated risks of fixed versus variable interest rates
  • Identify ways to compare advertised interest rates and effects of fees and charges
       
Element: Identify and discuss effective use of consumer credit
  • Identify and discuss ways to avoid excessive or unmanageable debt
  • List strategies to minimise fees on credit
  • Discuss importance of meeting minimum payments on credit cards
  • Identify and discuss ways to avoid credit card fraud
       
Element: Explain personal credit rating and history
  • Describe role of credit reference agencies
  • Explain purpose and use of credit reference reports in assessing loan applications
  • Identify and discuss implications of establishing a poor credit history
  • Describe methods of obtaining own credit reference report and discuss right to access the report
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and discuss role of credit in society

1.1 Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower

1.2 Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use

1.3 Discuss impact of consumer debt on national economy

2. Identify and discuss range of credit options available

2.1 Identify and compare types of credit facilities used by businesses

2.2 Identify and compare types of credit facilities used by individuals

2.3 Identify and discuss differences between unsecured and secured loans

2.4 Explain implications of default on secured loans to borrower

3. Identify and compare costs of using credit

3.1 Compare fees and costs associated with different types of credit options

3.2 Compare features and associated risks of fixed versus variable interest rates

3.3 Identify ways to compare advertised interest rates and effects of fees and charges

4. Identify and discuss effective use of consumer credit

4.1 Identify and discuss ways to avoid excessive or unmanageable debt

4.2 List strategies to minimise fees on credit

4.3 Discuss importance of meeting minimum payments on credit cards

4.4 Identify and discuss ways to avoid credit card fraud

5. Explain personal credit rating and history

5.1 Describe role of credit reference agencies

5.2 Explain purpose and use of credit reference reports in assessing loan applications

5.3 Identify and discuss implications of establishing a poor credit history

5.4 Describe methods of obtaining own credit reference report and discuss right to access the report

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and discuss role of credit in society

1.1 Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower

1.2 Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use

1.3 Discuss impact of consumer debt on national economy

2. Identify and discuss range of credit options available

2.1 Identify and compare types of credit facilities used by businesses

2.2 Identify and compare types of credit facilities used by individuals

2.3 Identify and discuss differences between unsecured and secured loans

2.4 Explain implications of default on secured loans to borrower

3. Identify and compare costs of using credit

3.1 Compare fees and costs associated with different types of credit options

3.2 Compare features and associated risks of fixed versus variable interest rates

3.3 Identify ways to compare advertised interest rates and effects of fees and charges

4. Identify and discuss effective use of consumer credit

4.1 Identify and discuss ways to avoid excessive or unmanageable debt

4.2 List strategies to minimise fees on credit

4.3 Discuss importance of meeting minimum payments on credit cards

4.4 Identify and discuss ways to avoid credit card fraud

5. Explain personal credit rating and history

5.1 Describe role of credit reference agencies

5.2 Explain purpose and use of credit reference reports in assessing loan applications

5.3 Identify and discuss implications of establishing a poor credit history

5.4 Describe methods of obtaining own credit reference report and discuss right to access the report

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
Identify and discuss concepts and terminology of credit provided by financial institute and debt incurred by borrower 
Identify historical and current role of consumer credit in Australian society and discuss advantages and disadvantages of credit use 
Discuss impact of consumer debt on national economy 
Identify and compare types of credit facilities used by businesses 
Identify and compare types of credit facilities used by individuals 
Identify and discuss differences between unsecured and secured loans 
Explain implications of default on secured loans to borrower 
Compare fees and costs associated with different types of credit options 
Compare features and associated risks of fixed versus variable interest rates 
Identify ways to compare advertised interest rates and effects of fees and charges 
Identify and discuss ways to avoid excessive or unmanageable debt 
List strategies to minimise fees on credit 
Discuss importance of meeting minimum payments on credit cards 
Identify and discuss ways to avoid credit card fraud 
Describe role of credit reference agencies 
Explain purpose and use of credit reference reports in assessing loan applications 
Identify and discuss implications of establishing a poor credit history 
Describe methods of obtaining own credit reference report and discuss right to access the report 

Forms

Assessment Cover Sheet

FNSFLT203 - Develop knowledge of debt and consumer credit
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

FNSFLT203 - Develop knowledge of debt and consumer credit

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: