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24703 Demonstrate and apply knowledge of credit for ... - NZQA

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Demonstrate and apply knowledge of credit for personal financial
management

Level                             3

Credits                           3

Purpose       People credited with this unit standard are able to, for personal financial
              management: demonstrate knowledge of the elements of contracts relating to
              credit; and compare alternative forms of credit.

Subfield                          Core Generic

Domain                            Personal Financial Management

Status                            Registered

Status date                       17 July 2009

Date version published            17 July 2009

Planned review date               31 December 2014

Entry information                 Open.

Accreditation                     Evaluation of documentation by NZQA.

Standard setting body (SSB)       NZQA National Qualifications Services

Accreditation and Moderation Action Plan (AMAP) reference                   0226
This AMAP can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.

Special notes

1   This unit standard is designed to aid understanding of personal finances. It is not
    concerned with business finances.

2   Assessment may be based on a case study or simulation but where the candidate’s
    real situation is used, every care must be taken to protect privacy, and the provisions
    of the Privacy Act 1993 will apply.

3   Legislation relevant to this unit standard may include but is not limited to:
    Credit Contracts and Consumer Finance Act 2003
    Credit (Repossessions) Act 1997
    Privacy Act 1993.




                                                                New Zealand Qualifications Authority 2012
                                                                                   24703 version 1
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4     Definitions
      Credit refers to the right granted by one person to another person to defer payment of
      a debt; or incur a debt and defer its payment; or purchase property or services and
      defer payment for that purchase (in whole or in part). (Credit Contracts and
      Consumer Finance Act 2003).
      Forms of credit includes but is not limited to – credit card, personal loan, hire
      purchase, finance company, mortgage, money lender.
      Debt refers to the amount which one person is under obligation to pay to another.

5     This unit standard is part of a series:
      Unit 24701, Demonstrate an introductory knowledge of credit for personal financial
      management, Level 1
      Unit 24702, Demonstrate knowledge of credit for personal financial management,
      Level 2
      Unit 24703, Demonstrate and apply knowledge of credit for personal financial
      management, Level 3.
      While the lower-level standards are not prerequisites for those at a higher level, they
      do contain content that may need to be achieved to enable success at the higher
      level.

Elements and performance criteria
Element 1

Demonstrate knowledge of the elements of contracts relating to credit for personal
financial management.

Performance criteria

1.1        The elements of a formal contract are described in terms of their relevance to
           credit.

           Range         agreement, offer and acceptance, consideration, legality of object,
                         legal capacity, absence of duress, in writing.

Element 2

Compare alternative forms of credit for personal financial management.

Range      credit for a purchase between $500 and $15,000, which may include but is not
           limited to – car, sound system, sporting equipment, furniture;
           evidence is required for at least three forms of credit.

Performance criteria

2.1        Cost of credit is calculated for each form of credit.

           Range         in calculating cost of credit, factors must include but are not limited
                         to – term of credit, interest costs, other charges, repayment
                         instalments and frequency, deposit;
                         calculations must identify early repayment penalties.



                                                                    New Zealand Qualifications Authority 2012
                                                                              24703 version 1
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2.2       Credit costs are compared to alternative payment methods for the purchase.

          Range         alternative payment methods may include; two from – paying
                        cash, lay-by, leasing;
                        credit costs include – monetary and non-monetary factors.

2.3       A credit purchasing method and an alternative purchasing method are
          compared in terms of their advantages and their disadvantages.

          Range         advantages and disadvantages may be based on objective/factual
                        evidence and/or on perceptions based on candidate’s own belief
                        system.

Please note

Providers must be accredited by NZQA, or an inter-institutional body with delegated
authority for quality assurance, before they can report credits from assessment against
unit standards or deliver courses of study leading to that assessment.

Industry Training Organisations must be accredited by NZQA before they can register
credits from assessment against unit standards.

Accredited providers and Industry Training Organisations assessing against unit standards
must engage with the moderation system that applies to those standards.

Accreditation requirements and an outline of the moderation system that applies to this
standard are outlined in the Accreditation and Moderation Action Plan (AMAP). The
AMAP also includes useful information about special requirements for organisations
wishing to develop education and training programmes, such as minimum qualifications for
tutors and assessors, and special resource requirements.

Comments on this unit standard

Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.




                                                               New Zealand Qualifications Authority 2012

				
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