Unit 3 Managing Your Own Money by 1ut45Np

VIEWS: 0 PAGES: 4

									Level 2 workskills sample assignments and delivery ideas

Unit: 3         Managing Your Own Money



Delivery ideas
Managing personal finance has always been a basic life skill, but changes in society
mean that young people face a challenging future when managing their finances.
Learners need skills to make informed choices and where to seek guidance and help. It
is important learners are introduced to the basic terminology needed to prepare a
budget, such as outgoings, expenditure, income, repayments, interest, debt.

LO 1
Begin a tutor-led discussion on sources of income. Learners could split into groups and
use their own everyday experiences to identify sources of income, then list the common
types of weekly or monthly expenditure. It would be useful for learners to research how
organisations budget their money to show how different financial circumstances and
needs differ.

Tutors could provide simple exercises based on planning and managing a personal
budget, such as a family or individual situation, to practice basic calculation techniques.
The level of calculations should reflect the functional skills mathematics standards for
learners at this level.

Learners could use the Internet to research a suitable budget planner or tutors could
provide a template for learners to individually keep a record of income and expenditure
for a week/month, and use those records to plan the weekly/monthly expenditure
according to the income. If learners choose to use their own financial situation as a basis
for planning income and outgoings, confidentiality must be respected throughout.
Although some budget planners carry out the calculations, it is important for learners to
do the calculations themselves, particularly for the assessment.

LO 2
In order to gather information about different forms of credit, learners can use the
Internet or visit local banks, building societies and shops. Small groups could visit
different financial institutions and this could be presented to the whole group. They need
to be aware of any bias involved, e.g. some institutions only offer their own products.

Alternatively, guest speakers such as representatives from banks or building societies
could be invited to speak about the various credit services their organisations offer.
Learners could prepare suitable questions to ask, with particular focus on the
requirements and responsibilities associated with buying on credit and taking out loans.

Learners could then complete the following table* to compare the different sources:


Source of advice          What it offers            Benefits             Drawbacks




*Get learners to create their own table to fit their required examples
Tutor-led discussions could highlight the consequences of getting into debt and learners
could prepare a poster or information sheet on the problems associated with using credit
or getting into debt. Younger learners cannot apply for credit cards, overdrafts, personal
loans or hire purchase schemes but may be able to relate issues to family and friends –
again this needs sensitive handling.


Sample assignment

Learning outcomes                     Assessment criteria

1   Be able to produce a personal     1.1 Carry out calculations of expenditure and
    budget                                income for an individual for a month
                                      1.2 Calculate balance at the end of the month
                                      1.3 Identify ways to ensure expenditure does not
                                          exceed income
2   Understand the use of credit to   2.1 Identify different sources of credit
    borrow money                      2.2 Explain how to use credit responsibly for
                                          expenditure and investing
                                      2.3 Describe the potential problems of using credit



Scenario

When you start work or you are in work you will receive an income (wages) from your
employer and you will need to decide how to make best use of this. In order to manage
your money well, you will need to budget how much you need to pay for your
commitments, e.g. mobile phone calls, and balance this with how much you receive. You
should also think very carefully about using credit or applying for a loan to buy
something you cannot afford at that time.

Task 1 Assessment criteria 1.1 and 1.2

To help you start thinking about how much income you need to cover your expenses
each month:

a) Complete a spreadsheet for a monthly budget
b) Calculate the monthly income and expenditure
c) Calculate how much money will be left at the end of each month
d) Decide how much to save each month for a holiday
To help you complete these calculations you may want to use the information provided
below and add other items such as gas/electricity, council tax, water rates, credit card
repayments, etc:

Wages                                           £300 a week
Rent                                            £105 a week
Food and toiletries                             £95 a month
Mobile phone                                    £25 a month
Insurance                                       £10 a month
Entertainment                                   £40 a week
Clothing                                        £60 a month
Transport                                       £25 a week



Task 2 – Assessment criteria 1.3

You need to ensure expenditure does not exceed income. Identify and explain three
ways to keep a budget in balance using the table below. You can either make reference
to the budget given in Task 1 or give general reasons.



Way to keep budget in balance                   How this way helps


1




2



3


Task 3 Assessment criteria 2.1, 2.2 and 2.3

Your friend has asked for your advice about getting credit to buy a car.

Write a letter to your friend and include the following information in the letter:

            a) Identify at least two different examples of sources of credit

            b) Identify and explain three different responsibilities that your friend will
               need to take into account before making a credit agreement for
               expenditure or investment. Make sure that for each responsibility
               identified you explain what this involves and comment whether it is for
               expenditure or investment.

            c) Describe two potential problems that could arise when using credit. You
               can set this out as follows:
Potential Problem                           Why it is a problem


1



2




Further resources for general interest and inspiration around money and finance can be
found at the following Edexcel web address;

http://www.edexcel.com/quals/skills/money/Pages/default.aspx

								
To top