This unit may be applied within the context of a financial counselling role or in educational programs facilitated by financial counsellors or financial institutions within the context of improving consumer financial literacy.

ELEMENT

PERFORMANCE CRITERIA

1. Discuss customer's responsibilities in relation to personal financial statements

1.1. The range and frequency of personal financial statements that are received by the customer are identified

1.2. The different purposes of financial statements and the need to retain certain financial statements for tax or other purposes is discussed with the customer

2. Explain specific information contained in a range of financial statements

2.1. A range of terminology used in financial Statements is explained to the customer

2.2. Common items listed on a credit card statement are identified and explained in plain language to the customer

2.3. Common items listed on a superannuation fund statement are identified and explained in plain language to the customer

2.4. Fees and charges applicable to superannuation are identified and explained to the customer

2.5. Contact details for advice on information contained within financial Statements are provided to the customer as necessary

3. Identify and explain ways of managing personal financial statements

3.1. The importance and means of checking financial statements for accuracy is explained and demonstrated to the customer

3.2. Ways to estimate and plan for regular payments and the appropriateness of different repayment options for the customer are identified and discussed

3.3. Options available to the consumer in case of inability to pay amounts owed in financial statements are explained to the customer

Required skills

communication skills to:

clearly explain financial statements and their use to customers, using questioning and active listening as required and respondingwith empathy in sensitive cases

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

IT skills to use internet information

literacy skills for:

analysing information to ensure appropriateness to customer or customer needs, currency and accuracy

drafting documents for customers and customers

problem solving skills to identify any issues that have the potential to impact on the customer's understanding and develop options

organisational skills, including the ability to plan and sequence work

Required knowledge

consumer issues relating to superannuation information

personal financial Statements received by consumers, the terminology used and layout of statements

relevant industry codes of practice including:

Consumer Credit Code

Privacy Act

Credit Act

relevant State and Territory legislation regarding consumer credit issues

roles and relationships between participants within the Australian financial services industry, including banks and other financial intermediaries

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

explain terminology used within a range of personal financial statements received by a range of customers

use high level communication skills in providing relevant information to customers in need of assistance in understanding personal financial statements

identify and present to customers effective methods of managing personal financial statements including the importance of verifying accuracy of information received.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to financial services product information.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment

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.

Range of personal financial statements received may include:

bank statements including:

credit card statements

savings account statements

investment statements

loan account statements

finance company statements

payslips

statements from utility providers

superannuation statements.

Different purposes of financial statements may include:

informing consumers of funds debited or credited to their accounts such as payslips showing amounts paid to nominated accounts

informing consumers of interest earned on investments

invoicing consumer for services rendered such as amounts owed on:

utility bills

credit cards

loans

providing consumers with information necessary for consumer to make informed decisions including statements regarding performance of investment funds.

Common items listed on a credit card statement may include:

closing balance

fees and charges for the period including annual account fees

list of any cash advances made during the statement period

list of purchases made during the statement period

minimum amount due and date owed

payments made during the statement period

period of time the statement represents

previous account balance.

Common items listed on a superannuation fund statement may include:

general details including:

confirmation tax file number received

date the member joined the fund

fund name

member name and date of birth

summary of account details including:

benefit details

closing balance

deductions including fees and withdrawals by the member

investment earnings

list of contributions

opening balance

rebates.

Superannuation fees and charges may include:

adviser service fees

annual fees

commissions

deposit fees

early termination fees

fund management fees

member fees

switching fees

trustee levy.

Providing contact details may include:

contact details of the appropriate institution and its regulating body

customer service number of the relevant institution

interpreter services

providing large print services and hearing impaired services.

Checking financial statements for accuracy may include:

checking receipts

comparing meter readings to a utility bill

keeping a record of telephone calls made.

Different repayment options may include:

prepayment of account

methods of how to pay the account, including:

at a post office

B-Pay

by credit card

by mail

by direct debit

in person

regular instalments.

Unit sector

Financial literacy

This unit contains employability skills.