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Evidence Guide: FNSFLT202A - Develop and use a savings plan

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

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FNSFLT202A - Develop and use a savings plan

What evidence can you provide to prove your understanding of each of the following citeria?

Discuss the place of saving and investing today

  1. The impact of increasingly high cost of living in western society is discussed using examples from the domestic environment
  2. Increasing levels of consumer debt in Australia are discussed with reference to relevant current issues
  3. The importance of setting financial goals and developing a saving and investment plan at different stages of an individual's life is analysed and discussed
  4. Different attitudes to savings and investment are analysed and discussed and the individual's own spending habits are explored
The impact of increasingly high cost of living in western society is discussed using examples from the domestic environment

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Increasing levels of consumer debt in Australia are discussed with reference to relevant current issues

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The importance of setting financial goals and developing a saving and investment plan at different stages of an individual's life is analysed and discussed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Different attitudes to savings and investment are analysed and discussed and the individual's own spending habits are explored

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Understand risk as it relates to saving and investing

  1. The concept of risk and risk versus return is explained and demonstrated
  2. An individual's risk profile is determined based on current and future requirements and the individual's level of risk aversion
  3. The impact of inflation on the earnings power of money is identified, assessed and discussed
The concept of risk and risk versus return is explained and demonstrated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

An individual's risk profile is determined based on current and future requirements and the individual's level of risk aversion

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The impact of inflation on the earnings power of money is identified, assessed and discussed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop your own savings plan

  1. Personal savings goals are identified and quantified into dollar amounts and arranged in order of priority
  2. A personal budget is developed to reveal funds available to contribute towards savings goals
  3. The range of financial product options available to maximise earnings on savings are investigated and the most appropriate is selected according to own requirements
Personal savings goals are identified and quantified into dollar amounts and arranged in order of priority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

A personal budget is developed to reveal funds available to contribute towards savings goals

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The range of financial product options available to maximise earnings on savings are investigated and the most appropriate is selected according to own requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement your own savings plan

  1. The requirements to open an account and provide evidence of personal identity are researched and steps taken to gather the necessary documentation
  2. Relevant savings accounts or other investigated financial products are opened and the savings plan implemented and monitored for a short period of time
  3. Adjustments to the savings goal are made where it is realised that the goal is unattainable
The requirements to open an account and provide evidence of personal identity are researched and steps taken to gather the necessary documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant savings accounts or other investigated financial products are opened and the savings plan implemented and monitored for a short period of time

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Adjustments to the savings goal are made where it is realised that the goal is unattainable

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

understand risk and return in relation to savings and investment

set realistic, measurable, specific and timely financial goals

calculate amount needed to achieve identified financial goals

develop a basic savings plan based on surplus income

explain the differences between basic financial products used to maximise savings.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the the range statement

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

access to information about the process of budgeting, current interest rates, savings products, software and other relevant resources.

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

verbal or written questioning on underpinning knowledge and skills

setting and reviewing simulations or scenarios

group discussion to determine and confirm understanding.

Guidance information for assessment

Required Skills and Knowledge

Required skills

communication skills to:

clearly explain personal budgeting and savings plans

use questioning to develop clear understanding

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

calculate interest and surplus or deficit funds

use a calculator

use internet information

literacy skills for interpreting relevant information

learning skills to maintain knowledge of budgeting and saving techniques

Required knowledge

principles of budgeting

role of budgeting and savings in establishing personal wealth

understanding of the financial institutions and their savings products

Range Statement

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.

Consumer debt may refer to:

credit card debt

mobile telephone debt

mortgages on residential and investment properties

personal loans to purchase:

motor vehicles

travel

domestic whitegoods

store credit

student loans including the Higher Education Contribution Scheme (HECS).

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.

Attitudes to savings and investment differ and may encompass those who:

believe it is essential in order to manage their money and achieve future financial goals

lack interest in or the discipline to save and therefore live from one pay packet to the next

occasionally think about saving but who do not take active steps to save.

Risk refers to:

the level of uncertainty associated with a particular savings or investment product.

The concept of risk versus return refers to the general truth that:

the higher the risk of the investment, the higher the expected return

the lower the risk of the investment, the lower the expected return.

Risk profile refers to:

the level of risk an individual is comfortable with when investing their money.

Inflation refers to:

the cost of living, indicated by the inflation rate

the percentage change in the Consumer Price Index (CPI) which is a quarterly survey of the retail price of a basket of goods and services consumed by the general population.

Goals need to be:

achievable

measurable

realistic

specific

timely.

Product options may include:

basic savings account

cash management trusts

fixed term deposits

investments in debentures and secured and unsecured stock

online bank accounts offering higher rates of return.

Requirements to consider when selecting a financial product for savings or investment may include:

account keeping fees, ongoing fees and charges and other non-government fees and charges

additional services offered

ease of access to funds

level of risk involved

locality of the institution

minimum opening balance required

potential tax implications

rate of interest earned

reputation of the financial institution

term to maturity.

The requirements to open an account include providing personal identification from a range of sources that equate to 100 points which may comprise::

70 points:

birth certificate

passport

citizenship certificate

40 points:

driver's licence

Shooter's licence

Public Service Employee ID card

Commonwealth or State government financial entitlement cards (e.g. pension card)

35 points:

land rates

25 points:

any card on which your name appears including Medicare card or credit card

documents on which your name and address appears including:

car registration

utility bill

rental slip.