Application
This unit describes the skills and knowledge required to develop, implement and monitor a personal savings budget. 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 use new ideas and techniques to develop personal financial literacy skills.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify and discuss budgeting as a financial tool | 1.1 Identify and consider role of budgeting in lives of different groups and importance of budgeting appropriately to meet expenses at different stages of life 1.2 Discuss importance of setting financial goals 1.3 Identify and discuss obstacles that might prevent financial goals being achieved, and types of behaviours and skills required for successful budgeting |
2. Prepare to develop a personal budget | 2.1 Record all income and expenses for a six-month period to assist in estimating expenditure requirements 2.2 Obtain or develop budget spreadsheet to record income and expenditure for relevant period of time 2.3 Identify and list all sources of income, regular fixed expenses and variable expenses for specified period in personal budget using budget spreadsheet |
3. Develop a personal budget | 3.1 Subtract total expenses recorded from total income to determine surplus or deficit budget for specified period 3.2 Explore reasons for deficit budget if relevant and investigate ways to reduce expenses or increase income 3.3 Explore allocation of surplus funds towards saving and meeting identified financial goals |
4. Implement and monitor the personal budget | 4.1 Follow budget according to plan for a period of time 4.2 Record actual expenses and income for period during which budget is implemented 4.3 Compare budgeted expenses and income with actual amounts and modify budget where necessary 4.4 Discuss handy hints for managing personal budget 4.5 Conduct ongoing review of budget to ensure it remains relevant and to ensure updates are incorporated if necessary |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.3, 2.3, 3.2 | Gathers and interprets financial information and identifies key aspects relevant to the task |
Writing | 1.1-1.3, 2.1-2.3, 4.2, 4.3 | Accurately records and documents information relating to personal budgets using correct language, concepts and terminology |
Oral Communication | 1.1-1.3, 4.4 | Participates in verbal exchanges using active listening and questioning to develop a clear understanding of budgeting information |
Numeracy | 2.1, 2.3, 3.1-3.3, 4.1 | Performs mathematical calculations including addition, subtraction, multiplication, division and percentages, and interprets financial information relating to budgets |
Get the work done | 2.1-2.3, 3.1-3.2, 4.1-4.5 | Plans routine tasks and organises work according to defined requirements Reviews effectiveness of decisions and makes adjustments as required Uses digital systems and tools to design work processes and complete work tasks |
Sectors
Financial literacy