Application
This unit describes the skills and knowledge required to work in the community services and health sector with target groups and individuals to identify their financial literacy education requirements.
This unit applies to workers who will be part of a professional team and under the guidance of a supervisor.
Financial literacy education provides targeted information and resources to meet particular client needs.
Acquisition of financial literacy education competencies alone does not provide sufficient foundation to undertake complex financial literacy education or financial counselling.
Where financial issues have the potential to become complex, clients should be referred to a qualified financial counsellor.
The skills in this unit must be applied in accordance with Commonwealth and State/Territory legislation, Australian/New Zealand standards and industry codes of practice.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements define the essential outcomes | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Explain role of credit and options | 1.1 Explain concepts and terminology of credit provided by a financial institution and the debt incurred by a borrower 1.2 Compare features of different types of loans or credit facilities 1.3 Identify differences between unsecured and secured loans and explain implications of default on secured and unsecured loans 1.4 Explain the cost of credit 1.5 Explain uses of documentation and the importance of maintaining paperwork |
2. Identify common debt issues | 2.1 Discuss common types of debt with client group and identify its potential implications in relation to specific client’s situation 2.2 Provide appropriate referrals to specialised services to assist clients to deal with debt issues 2.3 Identify and inform clients of ways to avoid debt as a means to assist client to minimise debt 2.4 Identify and inform clients of range of debt reduction strategies to address client situation |
3. Identify complaints and hardship options to address personal financial issues | 3.1 Provide general information on informal and formal complaint processes 3.2 Provide general information on hardship provisions |
Foundation Skills
The Foundation Skills describe those required skills (language, literacy, numeracy and employment skills) that are essential to performance. |
Foundation skills essential to performance are explicit in the performance criteria of this unit of competency |