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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Demonstrate knowledge of personal financial matters
   • Determine how career choice, education and skills affect income and goal attainment
   • Identify short-term and long-term financial goals
   • Identify tax matters relating to personal income
   • Explain impact of consumer and financial behaviour on personal spending
   • Explain how insurance and other risk management strategies protect against financial loss
   • Identify components of superannuation relevant to individual income earners
2. Manage personal finances
   • Compare benefits and costs of alternatives in spending decisions
   • Identify purpose of planning personal finances
   • Make personal financial choices based on logical decision making
   • Evaluate consequences of personal financial decisions, including contracts
   • Develop methods and systems (including electronic) to stay in control of personal cash flow, spending and use of debt
3. Build knowledge of personal financial matters
   • Explore and evaluate factors that affect personal credit worthiness
   • Seek advice from a specialist or mentor where required
   • Develop systems for maintaining up-to-date knowledge about personal finances and career opportunities to achieve goals
   • Identify reliable sources of ongoing information relevant to personal career and financial goals

Performance Evidence

Evidence of the ability to:

set personal financial goals and access opportunities for mentoring or advice on them

access information to build on and maintain knowledge of factors affecting personal finances.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

explain debt management including:

responsible use of credit

advantages of debit cards

consequences of debt default

attitude towards credit and spending

options for debt repayment

describe employee entitlements under:

Fair Work Act

equal opportunity legislation

Superannuation Act

Income Tax Assessment Act

Taxation Administration Regulations

describe how to find out about pay rates

explain how to establish and maintain a good credit history

explain the importance of saving money as a concept to assist and improve a life situation

outline insurance matters:

value of insurance

disclosure obligations

suitable insurance cover for personal income, trade tools, house, car and health

describe personal implications of taxation matters including:

role of the Australian Taxation Office and why tax is paid on income

personal tax liabilities and allowable deductions

tax rates

lodgement dates

awareness of goods and services tax (GST), pay as you go tax (PAYG), Australian business number (ABN), tax file number (TFN) and business activity statements (BAS)

explain principles of budgeting, cash flow and saving including:

role of credit and savings in establishing personal wealth

understanding of financial institutions and their savings, investment and credit products

describe personal financial aspects of:

bank accounts including savings, credit and investment

insurance cover for health, car, phone, warranty, tools, household and income protection

contracts including phones, data, tenancy and finance

explain superannuation matters including:

types of funds – retail versus industry

fund options – death or total and permanent disability (TPD) insurance

planning for the future

power of compound interest

superannuation guarantee

co-contributions

personal contributions

fees and charges

value of consolidating super funds

locating lost super.

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