Level 1 Qualification in Personal
                     Finance

             TEACHERS’ HANDBOOK



            M AN AG I N...
Contents
1.   Introduction

2.   Unit 1: Managing Money Day-to-Day
     Assessment criteria
     Teacher guidance
     Ses...
Introduction
Background to the Personal Finance Qualification at Level 1
An initial meeting took place in 2006 between the...
Structure
Qualification is awarded on successful assessment in three mandatory units:

      •   Unit 1: Managing Money Da...
useful have been identified for each unit. Full details for the resources can be found in
Section 5.

Assessments taking p...
Unit 1 –Managing Money Day to Day



Unit 1: Managing Money Day-to-Day

Unit goal:-
For learners to be able to manage mone...
Unit 1 –Managing Money Day to Day


LEARNING OUTCOMES                       ASSESSMENT CRITERIA

The learner will:        ...
Unit 1 –Managing Money Day to Day



Teacher Guidance

The Personal Finance Handbook and the FSA’s Money Made Clear7 websi...
Unit 1 –Managing Money Day to Day


1.1   Sources of income
Learner is required to recognise different sources of income.
...
Unit 1 –Managing Money Day to Day


1.2   Rights and Responsibilities
Learner is required to understand some key rights an...
Unit 1 –Managing Money Day to Day


1.3   Everyday Money Management
Learner is required to distinguish between different t...
Unit 1 –Managing Money Day to Day


1.4    Personal Budgeting
Learner is required to understand the purpose of budgeting a...
Unit 1 –Managing Money Day to Day



Session Plans for Unit 1

Sources of Income
Unit goal
For learners to be able to mana...
Unit 1 –Managing Money Day to Day


                         Handouts can form basis of a Key Facts File.
                ...
Unit 1 –Managing Money Day to Day


Bank Accounts
Unit goal
For learners to be able to manage money on a day-to-day basis ...
Unit 1 –Managing Money Day to Day


          branch           of the questions that you might get asked by the
          ...
Unit 1 –Managing Money Day to Day


Budgeting
Unit goal
For learners to be able to manage money on a day-to-day basis usin...
Unit 1 –Managing Money Day to Day


                                    essential spending – e.g. switch supplier,
       ...
Unit 1 –Managing Money Day to Day




Handouts for Unit 1




                BCS/PFQ1 Teachers Handbook/Nov07
           ...
Unit 1 –Managing Money Day to Day


Handout 1a.1 - Sources of Income
Income Sort

            Employment             Self-...
Unit 1 –Managing Money Day to Day


Handout 1a.2 - Sources of Income
Key Rights

Written Contract




Payslip




National...
Unit 1 –Managing Money Day to Day


Handout 1a.4 - Sources of Income
Main Benefits

Which benefits go in which circles?


...
Unit 1 –Managing Money Day to Day


Handout 1b.1 - Bank Accounts


            Proof of
            Address




          ...
Unit 1 –Managing Money Day to Day


Handout 1c.1 - Budgeting
Weekly/Monthly

Decide whether you are going to work out a we...
Unit 1 –Managing Money Day to Day



Useful Resources for Unit 1

Details of where to order resources can be found in the ...
Unit 1 –Managing Money Day to Day


5. Spending and budgeting

Workshops
Interactive ATM, Chip and PIN machines




      ...
Unit 1 –Managing Money Day to Day



Key Skills

Opportunities for providing evidence for Key Skills Communication, Applic...
Unit 2 – Planning your Money



Unit 2: Controlling Your Money

Unit goal
For learners to be able to make decisions about ...
Unit 2 – Planning your Money



Teachers Guidance

The Personal Finance Handbook and the FSA’s Money Made Clear9 website s...
Unit 2 – Planning your Money


2.1    Borrowing
Learner is required to plan how to repay debt, including strategies to man...
Unit 2 – Planning your Money


2.2   Debt problems
Learner is required to be able recognise when borrowing has become prob...
Unit 2 – Planning your Money


2.3    Saving
Learner is required to understand the advantages and disadvantages of saving ...
Unit 2 – Planning your Money


2.4   Saving and borrowing compared
Learner is required to judge for given scenarios when b...
Unit 2 – Planning your Money



Session Plans

Borrowing
Unit goal:
For learners to be able to make decisions about saving...
Unit 2 – Planning your Money


         risks        turning down unwanted products.

5        What next?   Recap
        ...
Unit 2 – Planning your Money



Debt

Unit goal
For learners to be able to make decisions about saving and borrowing using...
Unit 2 – Planning your Money



Savings

Unit goal
For learners to be able to make decisions about saving and borrowing us...
Unit 2 – Planning your Money


5         What next?      Recap
                          Next session will be looking at C...
Unit 2 – Planning your Money




Handouts for Unit 2




                BCS/PFQ1 Teachers Handbook/Nov07
                ...
Unit 2 – Planning your Money


Handout 2a.1 - Borrowing
Types and Sources of Borrowing

         Types of Borrowing      S...
Unit 2 – Planning your Money


Handout 2b.1 - Debt
Priority Debts



Mortgage (and other loans secured against your home) ...
Unit 2 – Planning your Money




Loans from Family and Friends



Social Fund Loans, Benefit Overpayments



Unlicensed Le...
Unit 2 – Planning your Money


Handout 2c.1 - Savings
Look-up Tables

How your weekly savings can build up
 Amount you bui...
Unit 2 – Planning your Money



Useful Resources for Unit 2

Details of where to order resources can be found in Section 5...
Unit 2 – Planning your Money



Key Skills

Opportunities for providing evidence for Key Skills Communication, Application...
Unit 3 – Choosing Products and Getting Help



Unit 3: Choosing products and Getting Help.

Unit goal
For learners to be a...
Unit 3 – Choosing Products and Getting Help



Teachers Guidance

The Personal Finance Handbook and the FSA’s Money Made C...
Unit 3 – Choosing Products and Getting Help


3.1    Comparing Financial Products
The learner will be able to identify the...
Unit 3 – Choosing Products and Getting Help


3.2     Sources of information and help
The learner will have a basic knowle...
Unit 3 – Choosing Products and Getting Help


•   state benefits and claiming them(e.g. Citizens Advice Bureaux, Jobcentre...
Unit 3 – Choosing Products and Getting Help


3.3    Complaints
The learner will know where to get advice and help when th...
Unit 3 – Choosing Products and Getting Help


3.4   Financial crime
The learner will understand how to operate financial p...
Unit 3 – Choosing Products and Getting Help



Session Plans for Unit 3

Choosing Financial Products
Unit goal
For learner...
Unit 3 – Choosing Products and Getting Help


                     and a credit card for a given scenario. Justify to     ...
Unit 3 – Choosing Products and Getting Help


Sources of Advice
Unit goal
For learners to be able to select between compet...
Unit 3 – Choosing Products and Getting Help


Complaints
Unit goal
For learners to be able to select between competing pro...
Unit 3 – Choosing Products and Getting Help


                        scam-quiz

5        What next?     Recap
           ...
Unit 3 – Choosing Products and Getting Help




Handouts for Unit 3




                    BCS/PFQ1 Teachers Handbook/Nov...
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
Level 1 Qualification in Personal Finance
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Level 1 Qualification in Personal Finance

  1. 1. Level 1 Qualification in Personal Finance TEACHERS’ HANDBOOK M AN AG I NG MON EY DAY- TO - DAY C O NTRO LLIN G YO UR MON EY CHO OSI NG FI NANC I AL PRO DU CTS AN D G E TTI NG H ELP Ver si on 1. 0 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 1
  2. 2. Contents 1. Introduction 2. Unit 1: Managing Money Day-to-Day Assessment criteria Teacher guidance Session plans Handouts Useful resources 3. Unit 2: Controlling Your Money Assessment criteria Teacher guidance Session plans Handouts Useful resources 4. Unit 3 : Choosing products and getting help Assessment criteria Teacher guidance Session plans Handouts Useful resources 5. Resource Directory 6. Coverage of the Adult Financial Capability Framework 7. Underpinning Key Skills: Communication, Application of Number and ICT 8. Coverage of the European Driving Licence 9. PHSE and Maths Curriculum BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 2
  3. 3. Introduction Background to the Personal Finance Qualification at Level 1 An initial meeting took place in 2006 between the British Computer Society (BCS) and Tribal Group (http://www.ctad.co.uk/) to discuss the potential for developing a level 1 Personal Finance qualification. This came about as a result of the Move On with Equal project (an Equal project funded by the EU and delivered by Tribal Group) which had been working with a wide range of organisations across the Voluntary/Community/Local Government/Private Providers to enable the unemployed gain employment (http://www.mowe.org.uk/ ). The work focused on various hard to reach groups as well as specific groups e.g. ex offenders, homeless, those in debt. This work indicated that there was a need to develop a personal finance course at level 1 to support these groups and organisations. As BCS had developed a level 2 online qualification it was decided that it would be beneficial to work with an organisation who already had the expertise in relation to curriculum as well as an understanding of the wider financial capability agenda. BCS and Tribal Group worked together to develop the qualification. The qualification has a wide and varied target group from those organisations delivering basic personal finance training sessions, providers delivering Level 1 qualifications, as well as learners who will benefit from an online e learning resource and qualification such as those living in rural areas who may not be able to access regular on site provision. The Qualification The qualification is aimed at those who require a level of financial understanding for their personal lives. There is a clear gap in the market for a Level 1 personal finance qualification that focuses on the developing of financial competency. Two main resources will help to underpin the content of the proposed qualifications: the developing level of the Adult Financial Capability Framework1 and the FSA’s baseline survey, Measuring Financial Capability2. The qualification aims to demonstrate financial capability and key life skills at the following levels: • Adult Financial Capability Framework: Developing • Key Skills: Level 1 • Secondary schools curriculum, financial capability: KS3. Prerequisites No prior financial knowledge required. 1 Adult Financial Capability Framework, 2 Measuring Financial Capability, FSA, 2006 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 3
  4. 4. Structure Qualification is awarded on successful assessment in three mandatory units: • Unit 1: Managing Money Day-to-Day • Unit 2: Controlling Your Money • Unit 3: Choosing financial products and getting help. Syllabuses are prescribed for each unit. Courseware providers choose how to deliver syllabus content. Non-mandatory teacher guidance is provided. Teaching hours It is estimated that each unit will require on average 10 hours tuition, but precise requirements will vary according to learner ability, prior knowledge and needs. Unit Teaching hours 1: Managing Money Day-to-Day 10 2: Controlling Your Money 10 3: Choosing Financial products and getting help 10 TOTAL 30 Assessment Assessment of each unit will be by 16-question test. The duration of each test is 30 minutes. Assessment will be delivered and marked by computer. One mark is given for each correctly completed question. The pass mark for each unit is 75 per cent. Learners are required to pass the test for all three units in order to achieve the qualification. Progression Learners who successfully complete this Level 1 course may wish to proceed to the British Computer Society Personal Finance Qualification Level 2. Teacher guidance Guidance has been written for each unit to supplement the content outlined in the syllabuses. This guidance complements the syllabuses. Therefore the handbook should be used in conjunction with the syllabuses for each unit. Resources Two key resources are recommended for the delivery of this qualification: the Personal Finance Handbook3 and the FSA’s Money Made Clear website4. Move on With Equal (MOWE) has developed some online learning materials linked to this accreditation which can be accessed for free on the MOWE website5. Additional resources which might be 3 Personal Finance Handbook, CPAG, 2007 4 www.moneymadeclear.fsa.gov.uk 5 www.mowe.org.uk BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 4
  5. 5. useful have been identified for each unit. Full details for the resources can be found in Section 5. Assessments taking place in 2007-8 will be based on legislation that will have come into force up to and including 1 October 2007 (for example, including the change in national minimum wage from that date). Web-based resources such as FSA and government websites will provide the most up-to-date information. Personal Finance6, a textbook to accompany the Open University module in Personal Finance, could provide useful background information to those who deliver this British Computer Society qualification. Links to frameworks and standards Coverage of the Adult Financial Capability Framework and the European Driving Licence has been identified along with the underpinning Key Skills required for the units. 6 Personal Finance, Wiley, 2006 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 5
  6. 6. Unit 1 –Managing Money Day to Day Unit 1: Managing Money Day-to-Day Unit goal:- For learners to be able to manage money on a day-to-day basis using appropriate financial products. LEARNING OUTCOMES ASSESSMENT CRITERIA The learner will: The learner can: 1.1 Recognise the different 1.1.a Identify the main sources of income and sources of income. benefits that are available from working as an employee. 1.1.b Determine for a range of situations whether the following benefits may be claimed: - income support - jobseeker’s allowance - housing benefit - council tax benefit - working tax credit. 1.2 Understand some key rights 1.2.a Determine for simple work situations and responsibilities connected whether correct rights are being given in with employment income. respect of: - pay - written contract of employment - rest breaks - paid holiday - sick pay - dismissal. 1.2.b Identify the main features of and purpose of: - payslip - P60 - P45. 1.2.c Make rough calculations to check the accuracy of entries on a pay slip. 1.2.d Identify sources of help with employee pay and sources of information about becoming self-employed. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 6
  7. 7. Unit 1 –Managing Money Day to Day LEARNING OUTCOMES ASSESSMENT CRITERIA The learner will: The learner can: 1.3 Perform everyday money 1.3.a Identify and describe the features of management tasks. basic bank accounts and current accounts. 1.3.b Undertake a range of money management tasks using the appropriate bank product feature. 1.3.c List the different methods that are available to pay for goods and services and identify which offers the best deal. 1.4 Demonstrate the use of personal 1.4.a Use records and statements to construct budgeting. a personal budget. 1.4.b Use information from a budget and suggest appropriate action where the budget shows a surplus or shortfall. 1.4.c Distinguish between essential and non- essential spending. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 7
  8. 8. Unit 1 –Managing Money Day to Day Teacher Guidance The Personal Finance Handbook and the FSA’s Money Made Clear7 website should provide you with the background knowledge to deliver the unit. Further resources that may be useful are also indicated. Full details for the resources can be found in Section 5. Session plans have been provided to illustrate possible activities that can be used to deliver this unit. Signposting to resources, tutor generated examples and exemplar handouts to support the sessions has been provided Each unit has 3 session plans of 3-hours each. The MOWE Personal Finance Hot Topic8, part 1 could be used at the start or finish of the unit to make up the guided learning hours to 10 for each unit. Flipchart, paper and pens given as standard but interactive whiteboard would be preferable if available. If possible each learner should keep a Key Facts file summarising information to be remembered along with definitions of key words. The following guidance referenced to the syllabus provides further details to help delivery of the unit. 7 www.moneymadeclear.fsa.gov.uk 8 www.mowe.org.uk BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 8
  9. 9. Unit 1 –Managing Money Day to Day 1.1 Sources of income Learner is required to recognise different sources of income. 1.1.1 Employment a) Be aware that most people work as an employee Additional guidance: 1.1.2 Earnings as an employee a) Understand the main forms of pay Additional guidance Learners need to know: • The main forms of pay: wages and salaries, pension scheme membership, life cover, childcare vouchers, other benefits. 1.1.3 State benefits a) Have a knowledge of the main state support available in the following situations: • low income • help with housing costs and provision • unemployment/ redundancy • in-work benefits. b) For different scenarios, be able to match appropriate state benefits to the circumstances described. Additional guidance Learners need to know: • Income support, including help with mortgage interest, council tax benefit • Housing benefit, local authority obligations towards homeless people • Council tax benefit • Jobseeker’s allowance, New Deal programmes • Working Tax Credit Learners should know in what circumstances each of the benefits may be claimed but do not need to know current rates or the details of how entitlement is calculated. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 9
  10. 10. Unit 1 –Managing Money Day to Day 1.2 Rights and Responsibilities Learner is required to understand some key rights and responsibilities connected with employment income 1.2.1 Self Employment a) Know where to get information about becoming self-employed. Additional guidance Learners need to know: • HM Revenue & Customs for information on tax when starting up a business. • Business Links for information on all aspects of running a business, including grants 1.2.2 Working for an employer a) Understand the main deductions from pay, broadly how they are worked out and what the worker gets in return. b) Have knowledge of key rights in connection with pay and what to do if rights not observed. c) Have knowledge of the key records an employee receives in connection with employment, why they should be kept and for how long. d) Know where to get help with pay as an employee. e) Be able to identify the key elements of a pay slip f) Be able confidently to ask for an explanation of entries on a pay slip. g) Be able confidently to seek help with employment rights. Additional guidance Learners need to know: • The main deductions from pay: National Insurance, income tax, pension contributions, union subscription, broadly how they are worked out and what a worker gets in return • The key rights in connection with pay: written contract, pay slips, national minimum wage, working hours and holidays, sick pay, dismissal. • Which records should be kept and for how long. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 10
  11. 11. Unit 1 –Managing Money Day to Day 1.3 Everyday Money Management Learner is required to distinguish between different types of bank account and know the procedures for opening an account. 1.3.1 Uses and features of bank accounts a) Understand that a bank account is increasingly necessary b) Have knowledge of basic bank accounts and current accounts, the different features each provides and the circumstances in which each would be appropriate. c) Be able to identify the appropriate bank account for different situations. Additional guidance Learners need to know: • Bank accounts needed to accept wages and benefits NB. Until 2010 benefits can be paid into Post Office® Card Accounts. 1.3.2 Opening a bank account a) Have knowledge of the procedures for opening a bank account, including the documents required and the requirement on banks to accept alternative forms of identification where standard documents are not available. b) Be able to apply for a bank account. c) Be able confidently to apply to open an account. Additional guidance: British Bankers Association publishes a guidance leaflet on documents required to satisfy Money Laundering Regs - ‘Proving Your Identity - How money laundering prevention affects opening an account’ The leaflet is available from the BBA website www.bba.org.uk BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 11
  12. 12. Unit 1 –Managing Money Day to Day 1.4 Personal Budgeting Learner is required to understand the purpose of budgeting and be able to construct and use a budget. 1.4.1 Budgeting a) Understand the reasons for budgeting b) Have knowledge of different ways of handling a budget. c) Distinguish between essential and non-essential spending. d) Understand importance of checking bills and statements. e) Be aware of opportunities to save money. f) Be able to convert figures between weekly, monthly and yearly basis. g) Be able to extract relevant figures from utility bills. h) Be able to read a bank statement. i) Be able to draw up a budget either for day-to-day living or for a special event, such as a holiday. j) Be confident in ability to monitor and control spending. Additional guidance Learners need to know: • What a budget is and how it may be used for control of resources, checking current financial position, being able to plan ahead, monitoring progress. • Cash budgeting, using a bank account, managing over a weekly, fortnightly or monthly cycle. • Opportunities to save money i.e by using direct debit, paying bills online, switching utility suppliers. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 12
  13. 13. Unit 1 –Managing Money Day to Day Session Plans for Unit 1 Sources of Income Unit goal For learners to be able to manage money on a day-to-day basis using appropriate financial products. Learning Outcomes The learner will be able to: 1.1 Recognise the different sources of income. 1.2 Understand some key rights and responsibilities connected with employment income. Minutes Topic Activity Resources 15 Sources of Introduction to session – Brainstorm where people Flipchart, paper, pens income get money from. Handout 1A.1 Sort into income from employment, benefits, self- employment and other using grid on Handout 1. In this unit going to look at income from employment and benefits. (For information on self-employment visit the Citizens Advice website www.adviceguide.org.uk/index/life/employment/self- employment_checklist or Business Link www.businesslink.gov.uk) 30 Employment - If employed, your payslip will show you how much Slide/MMtoM website payslip you have been paid in a month (or week) and what or A3 version of payslip money has been deducted. Selection of photos Discuss what the money deducted is used for or from sort photos of hospital, expensive car, party, roads, magazines/newspapers dentist, school, nursing home etc into two piles: one for where money deducted goes and one for what it won’t be spent on. Using an enlarged version of a payslip point out the key elements of a payslip – see the Where Money Comes from section of www.moneymatterstome.org.uk. (Right click image of payslip to print out) Individuals annotate printout of a payslip. Work through activity on MMtM website/CD ROM looking at working out how much tax will be deducted. 30 Employment – Discuss knowledge/experience of being employed. Handout 1A.2 key rights and Use newspaper cuttings as a resource to stimulate Summary of key rights responsibilities discussion if knowledge/experience of group likely to be low. Folders Q&A on key rights following on from discussion. Individuals add notes to Handout 2. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 13
  14. 14. Unit 1 –Managing Money Day to Day Handouts can form basis of a Key Facts File. Explore the difference between a P45 and a P60. Discuss the need to keep them, and provide with a folder to keep key documents in. 15 Break 30 Employment – Look at where to get help as an employee, with getting help regards to pay and employment rights. In pairs role play querying a pay slip and asking for Scenario cards with help with employment rights. key facts 30 Benefits – Return to list of benefits collected at start of Handout 1A.3 Key points session. Create factsheets from Use Handout 3 to record who can claim which information on benefits. DirectGov website. Read out information about benefits and ask for name of benefit. 25 Benefits – Create scenario cards and give out to pairs so that Scenario cards Which they can match the scenarios to benefits. benefits? 5 What next? Recap Next session will be looking at opening bank accounts. Note: See the Useful Resources section for information on: • MMtoM: Money Matters to Me website BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 14
  15. 15. Unit 1 –Managing Money Day to Day Bank Accounts Unit goal For learners to be able to manage money on a day-to-day basis using appropriate financial products. Learning Outcomes The learner will be able to: 1.3 Perform everyday money management tasks. Minutes Topic Activity Resources 15 Why use a bank Introduction to session – Who already has a bank Flipchart, account? account/knows someone who has? Why have paper, pens they got an account? 30 Choosing an In pairs/small groups work through the topic MGR CD ROM account - types ‘Choose an Account ‘on MGR CD ROM. of bank Make notes in Key Facts file to record the accounts difference between basic and current bank accounts. 30 Features of Using Colossal Cards talk through the different Colossal Cards accounts features of bank accounts, including standing Paper, pens orders, direct debits, overdrafts, online bill payments and how they work. In pairs, learners to design posters to illustrate how one or more of the different features work or to promote an account on the basis of one or more features. 15 Choosing an Discuss what factors might be involved in account – choosing a particular bank e.g. online, branch factors to close by, free gifts…. consider 15 Break 20 Opening an Discuss why proof is needed to open accounts. Short account - ID Use the sorting diagram on Handout 2.1 to sort Programmes: 2. types of ID into proof of address/name or both. Need An Check answers. Account – List Individuals to identify which proof of name and of ID address they have. Handout 1B.1 25 Opening an Individuals to practise filling in forms. Use a Forms from account – filling highlight pen to mark anything unsure of. banks or in forms Compare with a partner and make a note of any sample form in questions to ask whole group. Financial Make notes in margin when got answers. Products Make a list of information required to apply for a Resource Pack/ bank account. Short Programmes: 2. Need An Account 25 Opening an Split the whole group into two: one set make a list account – of the questions that you would want to ask when visiting the opening an account and the other set make a list BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 15
  16. 16. Unit 1 –Managing Money Day to Day branch of the questions that you might get asked by the bank. Use the questions to role play in pairs a visit to a bank to open an account. 5 What next? Recap Next session will be looking at budgeting. Note: See the Useful Resources section for information on: • Financial Products Resource Pack • MGR: Money-go-round CD ROM • Short Programmes: 2. Need an account BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 16
  17. 17. Unit 1 –Managing Money Day to Day Budgeting Unit goal For learners to be able to manage money on a day-to-day basis using appropriate financial products. Learning Outcomes The learner will be able to: 1.4 Demonstrate the use of personal budgeting. Minutes Topic Activity Resources 15 Skills for budgeting So far looked at money coming in and keeping the money in a bank account – now need to look at managing the money so that you don’t run out each week/month or pay charges for going overdrawn. Discuss what group understand by the term ‘budget’. List the skills needed for budgeting: • Read bank statements/bills • Converting between weekly, monthly, yearly bills • +, -, * , / or use a calculator/spreadsheet • Distinguish between essential/non- essential spending • Plan ahead 30 Reading Model checking a statement and a bill. Sample bills statements/bills Important to have a rough idea of how much and to expect going to pay/coming through statements on account. MMtoM In small groups work through the ‘Check Bills website and Statements’ section of Money-Go-Round MGR CD ROM CD ROM. 30 Converting between Need to be able to compare bills. Ask Handout 1C.1 weekly/monthly/yearly for/provide examples of different bills. In Calculators bills small groups/pairs convert as appropriate. Mini Record answers on mini whiteboards and whiteboards, hold up for checking. Points awarded for pens, cloths correct answer. Prizes if appropriate. 15 Break 25 Essential/non- Look at an example budget. Is it in surplus or Sample essential spending not? If there is a loss need to look at budgets on increasing income or reducing expenditure. MMtoM website and Highlight in green essential spending and in MGR CD ROM red non-essential spending. In pairs, discuss what categories would have in own budget – which would be essential and which non-essential? Brainstorm ways to reduce (but not eliminate) BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 17
  18. 18. Unit 1 –Managing Money Day to Day essential spending – e.g. switch supplier, reduce amount used. 30 Drawing up a budget Tutor to use a case study or similar from Case Study which a budget can be draw up. Give the information to the group. How can the budget be adjusted to build up an emergency fund/stop being overdrawn/save for an event or item? 20 Ten top tips for saving In small groups draw up list of ten top tips for money saving money. Collate list and vote on top 10. Put top 10 in Key Facts file. 5 What next? Recap Next session will be looking at Borrowing. Note: See the Useful Resources section for information on: • MGR: Money-go-round CD ROM • MMtoM: Money Matters to Me website BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 18
  19. 19. Unit 1 –Managing Money Day to Day Handouts for Unit 1 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 19
  20. 20. Unit 1 –Managing Money Day to Day Handout 1a.1 - Sources of Income Income Sort Employment Self-employed Benefits Other BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 20
  21. 21. Unit 1 –Managing Money Day to Day Handout 1a.2 - Sources of Income Key Rights Written Contract Payslip National Minimum Wage Working Hours Holidays Sick Pay Dismissal BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 21
  22. 22. Unit 1 –Managing Money Day to Day Handout 1a.4 - Sources of Income Main Benefits Which benefits go in which circles? If you Work If your income is low Other Situations BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 22
  23. 23. Unit 1 –Managing Money Day to Day Handout 1b.1 - Bank Accounts Proof of Address Proof of Name BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 23
  24. 24. Unit 1 –Managing Money Day to Day Handout 1c.1 - Budgeting Weekly/Monthly Decide whether you are going to work out a weekly or monthly budget. This will affect your calculations as some of your bills may be weekly, some monthly or some for the whole year (annual) and these will need dividing up or multiplying. If you are paid weekly, it probably makes sense to work out a weekly budget. To do this you will need to work out approximately how much any monthly, quarterly or annual bills are each week. To change annual bills to weekly, divide by 52. To change quarterly bills to weekly, multiply by 4 and then divide by 52. To change monthly bills to weekly, multiply by 12 and then divide by 52 If you are paid monthly, it probably makes sense to work out a monthly budget. To do this you will need to work out approximately how much any weekly or annual bills are each month. To change annual bills to monthly, divide by 12 To change quarterly bills to monthly, divide by 3. To change weekly bills to monthly, multiply by 52 and then divide by 12 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 24
  25. 25. Unit 1 –Managing Money Day to Day Useful Resources for Unit 1 Details of where to order resources can be found in the Resource Directory Colossal Cards Information and resources linked to the different types of cards Direct Payment Pack Range of resources linked to opening bank accounts Financial Products Resource Pack Basic Bank Account section provides realia related to a basic bank account Making Ends Meet Topics on opening a bank account and budgeting Money-go-Round – CD ROM Topics on budgeting, bank accounts and payslips NatWest Face 2 Face with Finance – interactive materials and video clips Bank On It Money for Life Personal Finance Handbook Chapter 2 Everyday Money Chapter 9 Benefits and tax credits Short Programmes • Need an Account? - session plan looking at the literacy and financial skills needed to use a bank account • Using an Account - session plan looking at the numeracy and financial skills needed to use a bank account • Keeping Track of Your Money - plan looking at the numeracy and financial skills needed in budgeting www.direct.gov.uk/en/Employment/Employees Information on rights of employees www.direct.gov.uk/en/MoneyTaxAndBenefits Information on benefits and tax www.moneymadeclear.fsa.gov.uk Sections on budgeting and using a bank account www.moneymatterstome.co.uk (Money Matters to Me) Useful Tools Interactive Budgeter helps you work out your monthly budget on an ongoing basis. Money Matters 2. Where money comes from: employment, self-employment and benefits 4. Introduction to record keeping with interactive activities BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 25
  26. 26. Unit 1 –Managing Money Day to Day 5. Spending and budgeting Workshops Interactive ATM, Chip and PIN machines BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 26
  27. 27. Unit 1 –Managing Money Day to Day Key Skills Opportunities for providing evidence for Key Skills Communication, Application of Number and ICT at Level 1: Opening a bank account. Communication C1.1 Take part in a group discussion on different types of bank accounts C1.2 Read texts about the different features of a bank account C1.3 Make a list of the advantages/disadvantages of the different types of accounts C1.3 Fill in an application to open a bank account This theme could also provide evidence for use of ICT. Setting up a budget Set up a budget based on own data or from that of a case study. Gather information from bank statements and utility bills (online and paper based). Compare the budget with that of another learner or case study. Application of Number N1.1 Gather numerical information to help set up a budget. Find another budget to compare with. N1.2a,b,c Compare the data from the two budgets. N1.3 Interpret the results and present your findings, in two different ways ICT ICT1.1 Gather information from online bank statements and bills to help set up a budget. ICT1.2 Use ICT to combine information from the internet and a non ICT based information source to set up budget using a spreadsheet. Send an email querying an item on a statement/bill. ICT1.3 Present the budget information accurately and fit for purpose. This could be by using and image, text or both. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 27
  28. 28. Unit 2 – Planning your Money Unit 2: Controlling Your Money Unit goal For learners to be able to make decisions about saving and borrowing using appropriate financial products and sources of help. LEARNING OUTCOMES ASSESSMENT CRITERIA The learner will: The learner can: 2.1 Be able to plan ahead 2.1.a Identify how a household budget may be to repay borrowing. constructed to repay borrowing and how this may be affected by a change in circumstances such as unemployment or interest rate changes. 2.1.b Identify financial products and strategies that can help households protect their budgets against changing circumstances. 2.2 Recognise and seek 2.2.a List debts in order of priority. help with a debt crisis. 2.2.b Construct a personal budget for repaying problem debts. 2.2.c Identify sources of advice and help with debt problems. 2.3 Demonstrate an 2.3.a Differentiate between what is meant by short, understanding of short- medium and long-term goals term goals and how they differ from 2.3.b Identify the main types of products suitable for medium and long-term each of the following: emergency fund, saving for goals. a holiday, saving for retirement. 2.3.c For different scenarios, compare and choose between two or more financial products on the basis of risk and return. 2.3.d Using tables, extract the amount that needs to be saved to meet a short-term savings goal. 2.4 Recognise how to 2.4.a Distinguish between similar products on the basis make informed of AER or APR and other factors, such as term purchasing decisions and risk. funded by credit or saving. 2.4.b Using tables, extract the total cost of an item purchased with borrowing. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 28
  29. 29. Unit 2 – Planning your Money Teachers Guidance The Personal Finance Handbook and the FSA’s Money Made Clear9 website should provide you with the background knowledge to deliver the unit. Further resources that may be useful are also indicated. Full details for the resources can be found in Section 5. Session plans have been provided to illustrate possible activities that can be used to deliver this unit. Signposting to resources, tutor generated examples and exemplar handouts to support the sessions has been provided Each unit has 3 session plans of 3-hours each. The MOWE Personal Finance Hot Topic10, part 2 could be used at the start or finish of the unit to make up the guided learning hours to 10 for each unit. Flipchart, paper and pens given as standard but interactive whiteboard would be preferable if available. If possible each learner should keep a Key Facts file summarising information to be remembered along with definitions of key words. The following guidance referenced to the syllabus provides further details to help delivery of the unit. 9 www.moneymadeclear.fsa.gov.uk 10 www.mowe.org.uk BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 29
  30. 30. Unit 2 – Planning your Money 2.1 Borrowing Learner is required to plan how to repay debt, including strategies to manage the risk to debt repayments of changes in circumstances, and be able to compare different ways of borrowing. 2.1.1 Planning ahead a) Have knowledge of different reasons for borrowing. b) Understand the importance of planning how debt will be repaid. c) Understand the circumstances and types of risk that most often upset debt repayment plans. d) Be able to construct a budget to repay borrowing Additional guidance Learners need to know about: Effect of uncontrolled spending, uncontrolled gambling, change in interest rates, loss of job, family breakdown 2.1.2 Comparing different ways of borrowing a) Begin to understand the cost of borrowing and how to use Annual Percentage Rates (APR)s. b) Have knowledge of some key types of borrowing and sources of borrowing and understand the key differences between them. c) Have a knowledge of financial strategies and products that may help to manage the risks. d) Be able to use look-up tables and online tools to work out the total cost of an item bought on credit. e) Be able to compare the relative cost of credit deals using the APR. f) Be able to identify risks associated with borrowing for different scenarios. g) Be able to weigh up whether an insurance product is worth having. h) Be in control of borrowing decisions. i) Be confident turning down unwanted products Additional guidance Learners need to know about: • traditional credit cards, store cards, pre-pay credit cards, secured and unsecured personal loans • High Street lenders, credit unions and partnership schemes, cheque cashing services, doorstep lending, loan sharks • choosing fixed-interest-rate or variable-interest-rate products, building up an emergency fund, insurance products BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 30
  31. 31. Unit 2 – Planning your Money 2.2 Debt problems Learner is required to be able recognise when borrowing has become problem debt, understand the consequences of failing to pay debts, and know where to get help and advice. 2.2.1 Identifying and tackling debt problems a) Understand the consequences of failing to pay different types of debt. b) Have knowledge of the agencies that offer free advice and help sorting out debt problems. c) Recognise when debts have become a problem. d) Be able to list debts in order of priority. e) Be able to adjust a budget to release money to tackle debts. f) Be able to find the contact details for agencies offering free debt advice and help (online and from paper-based directories). g) Be confident seeking help with debt problems. Additional guidance Learners need to know about: Order of priority for debts Useful websites: http://www.moneymadeclear.fsa.gov.uk/print.aspx?Page=/tools/sorting_out_borrowing_p roblems BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 31
  32. 32. Unit 2 – Planning your Money 2.3 Saving Learner is required to understand the advantages and disadvantages of saving and be able to construct a plan to achieve a short-terms savings goal 2.3.1 Interest on savings a) Understand that savings usually earn interest but take time to build up. b) Know that interest rates for savings are expressed as Annual Equivalent Rates (AER) and how to use the AER. c) Be able to compare different savings deals on the basis of AER. Additional guidance: 2.3.2 Time span a) Understand that goals may be short, medium or long term and that the approach to achieving them is likely to differ according to the timespan. b) Have knowledge of the broad types of product that are suitable for goals according to timespan and how they vary in terms of risk. c) Be able to identify whether goals are short, medium or long term. Additional guidance: Learners need to know about: • Different types of risk (capital, inflation, shortfall). 2.3.3 Short-term goal a) Have knowledge of the main savings products and sources suitable for a short-term goal and understand the key differences between them. b) Using look-up tables, be able to work out how much needs to be saved to meet a defined goal over a defined short-term timespan. c) Be able to suggest suitable savings products for different short-term goals. d) Be able to monitor savings using statements e) Be confident in ability to save up for something. Additional guidance: Learners need to know about: • bank and building society accounts • National Savings & Investments • credit unions • Savings clubs and payment-in-advance schemes such as Farepak. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 32
  33. 33. Unit 2 – Planning your Money 2.4 Saving and borrowing compared Learner is required to judge for given scenarios when borrowing or saving might be the most suitable strategy. 2.4.1 Making saving and borrowing decisions a) Be able to suggest whether saving or borrowing would be most appropriate in different scenarios, giving reasons for the choice. b) Be confident making purchasing and saving decisions. Additional guidance: BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 33
  34. 34. Unit 2 – Planning your Money Session Plans Borrowing Unit goal: For learners to be able to make decisions about saving and borrowing using appropriate financial products and sources of help. Learning Outcomes The learner will be able to: 2.1 Plan ahead to repay borrowing. Minutes Topic Activity Resources 15 Why In small groups cut out pictures from magazines of items Magazines borrow? that might need to borrow money in order to buy. Stick Scissors pictures on flipchart paper to create posters. Display Glue posters around room. Flipchart Discuss other reasons why we might need to borrow e.g. paper to study, pay debts. 30 Planning Input on need to plan to re-pay debt – see ch4 Personal PFH repaying Finance Handbook. Discuss what might upset a debt repayment plan. Make notes in Key Facts file. 15 Comparing In small groups brainstorm types and sources of Handout ways of borrowing. Collate list from ideas gathered in groups. 2A.1 borrowing – Discuss the differences between them. where from? 15 Comparing Input on cost of borrowing, APR and how to use. ways of borrowing – cost of borrowing 15 Break 30 Comparing Using adverts, pairs to find the cheapest loan and the most Adverts for ways of expensive loan using the APRs. Discuss why APRs vary loans borrowing – and what else to look out for when choosing a loan. comparing APRs 30 Comparing Introduce online tools and look-up tables to work out cost Access to ways of of borrowing e.g. Internet / borrowing – www.moneymadeclear.fsa.gov.uk/tools/loan_calculator or MMtoM CD working out www.moneymatterstome.co.uk/Interactive- ROM cost of Tools/LoanCalculator . borrowing In pairs choose three items from catalogues/magazines. Using look up tables/online tools work out the total cost of borrowing to buy items chosen. 25 Comparing Brainstorm ways of managing risks associated with ways of borrowing. borrowing – Discuss when might take out insurance products and how managing to turn down unwanted products. If appropriate role play BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 34
  35. 35. Unit 2 – Planning your Money risks turning down unwanted products. 5 What next? Recap Next session will be looking at Debt. Note: See the Further Resources section for information on: PFH: Personal Finance Handbook MMtoM: Money Matters to Me website BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 35
  36. 36. Unit 2 – Planning your Money Debt Unit goal For learners to be able to make decisions about saving and borrowing using appropriate financial products and sources of help. Learning Outcomes The learner will be able to: 2.2 Recognise and seek help with a debt crisis. Minutes Topic Activity Resources 15 What is debt? Brainstorm what is meant by the word ‘debt’. Discuss why having debt can be a problem. 60 Tackling debt Individuals/pairs work through MMtoM section Access to Implications of Finance: Dealing with Debt. Internet/MMtoM CD ROM for pairs 15 Break 30 Seeking help Individuals/pairs use the Internet to identify Access to Internet organisations offering advice related to debt. for pairs Make notes on what is being offered, whether it is independent advice, whether there is a cost. Compare results and discuss where they would go if they needed help solving a debt problem. Record contact details in Key Facts file. 30 Receiving help Discuss the information that would be needed Handout 2B.1 if an adviser was to help sort out debt (cut into strips to problems. make cards) Using debt cards created from Handout 2, small groups put debts into order of priority for re-payment. Compare to FSA list – this is a general guide to the order of priority, but it may not be appropriate in every case. Magistrates’ court fines and not paying TV licence are often given a higher priority because they can lead to imprisonment. Look at the consequences of not paying the debts. 25 Adjusting a As a whole group/pairs work through Deal with MGR CD ROM budget Problems section of MGR. Data projector if Remind of work on essential/non-essential available spending and discuss how budgets can be adjusted to help re-pay debts. 5 What next? Recap Next session will be looking at Savings Note: See the further resources section for information on: MGR: Money-go-round CD ROM MMtoM: Money Matters to Me website BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 36
  37. 37. Unit 2 – Planning your Money Savings Unit goal For learners to be able to make decisions about saving and borrowing using appropriate financial products and sources of help. Learning Outcomes The learner will be able to: 2.3 Demonstrate an understanding of short-term goals and how they differ from medium and long-term goals. 2.4 Recognise how to make informed purchasing decisions funded by credit or savings. Minutes Topic Activity Resources 15 Financial goals Brainstorm items you might save up for in Flipchart, paper, pens - timespan the short (up to 5 years), medium (5-10 years) and long (more than 10 years) term. 15 Financial goals Discuss the financial products which may - products be suitable for the different timespans. Discuss the different types and levels of risk associated with the products e.g. losing capital, effect of inflation, shortfall. 30 Short-term In pairs, use magazines/newspapers to Magazines/newspapers savings find adverts for short-term savings Scissors products. For each list the features. Collate a list of products and features for whole group. Match the products against the short-term savings goals identified at the start of the session. Record in Key Facts file. 30 Interest Work through MGR topic Choose the Best MGR Way to Save in pairs or as a whole group. 15 Break 30 Comparing In small groups come up with ways to savings remember what AER stands for and that accounts - the rates are used to compare savings AER accounts. Using the adverts found earlier in the session find the savings account with the highest rate. Discuss why you might not always choose the account with the highest rate. 25 How much to Look up tables Handout 2C.1 save to meet Work out how much to save a week/month goal to meet the short-term savings goals identified at the start of the session. 30 Save or Work through MGR topic Plan for a MGR borrow? Purchase in pairs. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 37
  38. 38. Unit 2 – Planning your Money 5 What next? Recap Next session will be looking at Choosing Financial Products www.fsa.gov.uk/financial_capability/tools/fmf/index Choose: budgeting for the cost of children Note: See the Further Resources section for information on: MGR: Money-go-round CD ROM BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 38
  39. 39. Unit 2 – Planning your Money Handouts for Unit 2 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 39
  40. 40. Unit 2 – Planning your Money Handout 2a.1 - Borrowing Types and Sources of Borrowing Types of Borrowing Sources of Borrowing BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 40
  41. 41. Unit 2 – Planning your Money Handout 2b.1 - Debt Priority Debts Mortgage (and other loans secured against your home) or rent Council Tax Gas and Electricity Water Income Tax or VAT arrears Hire Purchase Magistrates’ Court Fines TV Licence Maintenance to Support a Former Partner or Children BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 41
  42. 42. Unit 2 – Planning your Money Loans from Family and Friends Social Fund Loans, Benefit Overpayments Unlicensed Lenders Store Cards, Credit Cards and unsecured Personal Loans and Overdrafts Business Debts from http://www.moneymadeclear.fsa.gov.uk/print.aspx?Page=/tools/sorting_out_borrowing_pro blems The key to sorting out your borrowing problems is the five-step approach: 1) Work out the scale of the problem including which debts are a priority; 2) Draw up your budget; 3) Look for ways to increase your income and/or cut your spending 4) Contact creditors and offer to pay what you can afford (giving priority to your priority debts), and 5) Don't let matters slide - get help if you need it. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 42
  43. 43. Unit 2 – Planning your Money Handout 2c.1 - Savings Look-up Tables How your weekly savings can build up Amount you build And you save this much each week: up* if you save for this long: £1 £5 £10 £25 £50 6 months £26 £132 £264 £660 £1,320 1 year £54 £268 £536 £1,339 £2,679 18 months £82 £408 £816 £2,039 £4,078 2 years £110 £552 £1,104 £2,759 £5,518 3 years £171 £853 £1,706 £4,264 £8,528 4 years £234 £1,172 £2,344 £5,859 £11,718 5 years £302 £1,510 £3,020 £7,550 £15,100 How your monthly savings can build up Amount you build And you save this much each month: up* if you save for this long: £1 £5 £10 £25 £50 6 months £6 £31 £61 £153 £305 1 year £12 £62 £124 £310 £619 18 months £19 £94 £189 £471 £943 2 years £26 £128 £255 £638 £1,276 3 years £39 £197 £394 £986 £1,972 4 years £54 £271 £542 £1,355 £2,709 5 years £70 £349 £698 £1,746 £3,491 * Tables show before-tax return assuming interest rate of 6% pa gross. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 43
  44. 44. Unit 2 – Planning your Money Useful Resources for Unit 2 Details of where to order resources can be found in Section 5: Resource Directory Dealing With Your Debts Background information on dealing with debt and setting up budgets Financial Products Resource Pack Savings and Credit Card sections providing realia related to products Making Ends Meet Topics on savings, loans and debt Money-go-Round – CD ROM Topics on saving and borrowing NatWest Face 2 Face with Finance – interactive materials and video clips Credit File Personal Finance Handbook Chapter 1 Financial Planning Chapter 3 Saving Chapter 4 Borrowing Short Programmes Saving for the Future - session plan looking at the numeracy and financial skills needed to look at options for saving. Paying for It All - session plan looking at the numeracy and financial skills needed to look at options for borrowing. www.direct.gov.uk/en/MoneyTaxAndBenefits Information on dealing with debt www.moneymadeclear.fsa.gov.uk Sections on savings, loans, comparing products, loan calculator and dealing with debt www.moneymatterstome.co.uk Money Matters 6. Risk and Return Section on savings and loans, including savings and loan calculators 7. Making Personal Life Choices Section on financial planning and debt www.nationaldebtline.co.uk Useful pack on dealing with debt problems BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 44
  45. 45. Unit 2 – Planning your Money Key Skills Opportunities for providing evidence for Key Skills Communication, Application of Number and ICT at Level 1: Borrowing Communication C1.1 Take part in a group discussion on the different types and sources of borrowing available to consumers. C1.2 Read text that outlines the cost of borrowing. C2.3 Complete an application form to obtain credit C2.3 Devise a mindmap which illustrates the different types of borrowing Application of Number N1.1 Gather numerical information from two sources (showing APR) to identify the best deal for obtaining a loan. N1.2a,b,c Compare the data from the two sources N1.3 Interpret the results and present your findings, in two different ways ICT ICT1.1 Search the Internet to find details on costs of loans. ICT1.2 Use ICT to combine information from the internet and a non ICT based information source to prepare article on the best deal. Send an email to teacher with draft article attached, for comment. ICT1.3 Present findings in the form of an article for a student magazine, including an image and numbers. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 45
  46. 46. Unit 3 – Choosing Products and Getting Help Unit 3: Choosing products and Getting Help. Unit goal For learners to be able to select between competing products and identify appropriate sources of advice and help. LEARNING OUTCOMES ASSESSMENT CRITERIA The learner will: The learner can: 3.1 Be able to select 3.1.a Distinguish between different products on the basis between competing of cost, accessibility, risk and other terms. financial products. 3.1.b Access details of financial products from a range of sources. 3.1.c Choose appropriate type/s of product which match specified financial goals. 3.2 Know the sources of 3.2.a Choose between sources of information on information and help financial products according to their purpose, that are available when independence and reliability. making financial decisions. 3.2.b Identify the role of different types of intermediary that are available to the consumer. 3.3 Know the sources of 3.3.a Identify whether or not a consumer has grounds for information and help complaint for a given range of scenarios. that are available in the event of complaints 3.3.b Identify the key characteristics of the main about financial independent complaints bodies. products. 3.3.c Demonstrate awareness of the key characteristics of the main compensation schemes. 3.4 Recognise how 3.4.a Identify precautions the individual can take to financial crime can reduce the risk of being a victim of fraud when: affect the individual and - paying by debit card understand how to - using online banking protect against it - using a cash machine. 3.4.b Recognise inaccurate transactions on statements. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 46
  47. 47. Unit 3 – Choosing Products and Getting Help Teachers Guidance The Personal Finance Handbook and the FSA’s Money Made Clear11 website should provide you with the background knowledge to deliver the unit. Further resources that may be useful are also indicated. Full details for the resources can be found in Section 5. Session plans have been provided to illustrate possible activities that can be used to deliver this unit. Signposting to resources, tutor generated examples and exemplar handouts to support the sessions has been provided Each unit has 3 session plans of 3-hours each. The MOWE Personal Finance Hot Topic12, part 3 could be used at the start or finish of the unit to make up the guided learning hours to 10 for each unit. Flipchart, paper and pens given as standard but interactive whiteboard would be preferable if available. If possible each learner should keep a Key Facts file summarising information to be remembered along with definitions of key words. The following guidance referenced to the syllabus provides further details to help delivery of the unit. 11 www.moneymadeclear.fsa.gov.uk 12 www.mowe.org.uk BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 47
  48. 48. Unit 3 – Choosing Products and Getting Help 3.1 Comparing Financial Products The learner will be able to identify the main features that distinguish products and be able to select appropriate products using a variety of sources. 3.1.1 Main features a) Understand that a type of product is characterised by a set of features, some desirable, some not. b) Understand that the precise features for a specific product generally vary from one provider to another. c) Understand that the consumer may be able to alter some product features. d) Be able to describe a savings account in terms of its main features. e) Be able to describe a credit card in terms of its main features. f) Be able to describe an insurance policy (e.g car insurance) in terms of its main features. Additional guidance Learners need to know : • How to assess features by cost, accessibility, risks, other terms. • Can change product by the way they choose to pay (eg credit card) or by changing cover or excess (insurance) 3.1.2 Sources of information a) Have knowledge of the main sources of information about product features. b) Be able to distinguish between information sources on the grounds of purpose, independence and reliability. c) Be aware of how TV and print advertisements may influence choice d) Be able to use online comparative tables to select savings accounts for different scenarios. e) Be able to use online comparative tables to select personal loans and credit cards for given scenarios. f) Be wary of taking marketing claims at face value. g) Be confidently able to shop around for suitable deals. Additional guidance Learners need to know about: • Main sources of information: in particular, TV and print advertisements, marketing literature, terms and conditions, key facts documents, comparative tables in newspapers and online. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 48
  49. 49. Unit 3 – Choosing Products and Getting Help 3.2 Sources of information and help The learner will have a basic knowledge of the range of financial products available, where to get information and advice about them, and where to get help and advice with other financial decisions. 3.2.1 Financial goals a) Have knowledge of the range of financial goals that people are likely to have depending on their household circumstances and stage of life. b) Identify typical goals in specified scenarios. Additional guidance: 3.2.2 Financial products a) Have a basic knowledge of the types of financial product that may be useful in achieving different goals. b) Match generic products to specified goals. Additional guidance Learners need to know : • that FSA comparative tables cover only a limited range of products - e.g. they don’t include credit cards • the definition of intermediary. • a list of bodies that can be complained to where a product or service is outside the scope of the Financial Services Ombudsman. • that FSO are approachable and will provide support to complete the forms. Financial Services Compensation Scheme, Compensation schemes for occupational pensions: Pension Protection Fund, Fraud Compensation Fund, Financial Assistance Scheme 3.2.3 Sources of advice and help a) Have knowledge of the main sources of advice and help and be able to distinguish between them on the grounds of independence and cost. b) Understand the distinction between information and advice. c) Use the internet and paper-based directories to find contact details for sources of advice. d) Evaluate sources of advice by independence and cost. e) Be confidently able to seek appropriate advice. f) Be confident rejecting inappropriate or unnecessary advice. Additional guidance Learners need to know: Have knowledge of the main sources of advice and help and be able to distinguish between them on the grounds of independence and cost, in relation to: • debt-related goals(e.g. Citizens Advice Bureaux, Consumer Credit Counselling Service, National Debtline, other money advice centres) BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 49
  50. 50. Unit 3 – Choosing Products and Getting Help • state benefits and claiming them(e.g. Citizens Advice Bureaux, Jobcentre Plus, The Pension Service) • insurance (eg insurance brokers) • savings and investments (eg independent financial advisers) • Learners need to be aware of sources that lack independence, eg debt management companies, product providers, tied advisers (such as most banks and building societies). BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 50
  51. 51. Unit 3 – Choosing Products and Getting Help 3.3 Complaints The learner will know where to get advice and help when they have a complaint about a financial product.. 3.3.1 Making a complaint a) Be aware of the responsibilities of consumers and when a complaint is likely not to be valid. b) Have knowledge of the complaints systems financial firms must offer. c) Have knowledge of the Financial Ombudsman Service (FOS) and its scope. d) Have knowledge of other bodies dealing with complaints outside the FOS scope. e) Be able to use the internet and paper-based directories to find the contact details of FOS and other independent complaints bodies. f) Be able to write a letter of complaint for a given scenario. g) Be confident making a complaint. Additional guidance: Learner needs to know: • Circumstances in which a consumer might have a valid claim or might not have a valid claim under FOS or other complaints schemes. 3.3.2 Redress a) Have knowledge of compensation schemes and when they might apply. Additional guidance: Learner needs to know: • For Financial Services Compensation Scheme: the maximum amounts of compensation payable and in what circumstances. • For compensation schemes covering occupational pension schemes, the circumstances in which a claim might be made, including relevant dates. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 51
  52. 52. Unit 3 – Choosing Products and Getting Help 3.4 Financial crime The learner will understand how to operate financial products safely in order to protect himself/herself from fraud. 3.4.1 Financial crime a) Understand how to operate a bank or savings account safely. b) Be able to check a bank statement for accuracy. Additional guidance Learners need to know about: • keeping PINs safe, operating a cash machine safely, operating an online account safely, checking statements, disposing of documents carefully BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 52
  53. 53. Unit 3 – Choosing Products and Getting Help Session Plans for Unit 3 Choosing Financial Products Unit goal For learners to be able to select between competing products and identify appropriate sources of advice and help. Learning Outcomes The learner will be able to 3.1 Be able to select between competing financial products. Minutes Topic Activity Resources 15 What are In small groups, identify from sets of adverts Adverts financial which are for financial products and draw up list of products? the types of financial products. Record in Key Facts file. 30 Features of In pairs, each take one of the adverts for a Adverts financial savings account, a credit card and an insurance Highlight products policy and identify the features, using highlight pens pens. Compare the features found within the whole group to come up with a list of main features for savings accounts, credit cards and insurance policies. Record in Key Facts file. 30 Sources of Watch a number of adverts for financial products. TV/video / information - eg: Internet TV www.visit4info.com http://tvs-worst-adverts.co.uk http://www.nationalarchives.gov.uk/films/1979to20 06/filmpage_dummy.htm Whilst watching ask group to make a note of any of the main features of the products mentioned. Compare results. Discuss how the adverts will influence choice. 15 Sources of In pairs re-visit adverts used earlier in the session. Adverts information - How will these adverts influence choice and what print other information would you need to make an informed choice? 15 Break 30 Sources of In pairs search for information on a financial Access in information - product online. What types of sites come up as a pairs to online result of the search? Make a note of the sites and Internet comment on purpose, independence and reliability. 35 Comparative Model using a comparative table to select a Access in tables savings account, a personal loan and a credit pairs to card. Internet In pairs select a savings account, a personal loan www.fsa.g BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 53
  54. 54. Unit 3 – Choosing Products and Getting Help and a credit card for a given scenario. Justify to ov.uk/table others in small group why chose particular s : Savings products for own scenario. For savings, personal loans and credit cards, could use www.moneyfacts.co.uk. For savings could use FSA tables - note that PPI being added at some time. 20 Sources of Look back at the different sources of information – information - do any others need adding to list of sources. comparison Which would individuals use in future? Make a note in Key Facts file of preferred source of information. 5 What next? Recap Next session will be looking at Sources of Advice. BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 54
  55. 55. Unit 3 – Choosing Products and Getting Help Sources of Advice Unit goal For learners to be able to select between competing products and identify appropriate sources of advice and help. Learning Outcomes The learner will be able to 3.2 Know the sources of information and help that are available when making financial decisions. Minutes Topic Activity Resources 5 Life stages Either draw on paper/board or create a timeline on floor. Mark off different life stages. 15 Financial goals Work in small groups to identify typical Handout 3B.1 financial goals for each stage. 15 Financial Small groups identify for each financial goal products appropriate generic financial products. 40 Seeking advice As whole group or in pairs work through MGR MGR – Talk to Experts 15 Information v Discuss the difference between information advice and advice. 15 Break 30 Sources of Small groups identify where it would be best Access to Internet advice to get advice for the products they have Telephone identified earlier. directories Identify whether advice has a cost and is independent. Compare and update information gathered. Put handout in Key Facts file. 30 Meeting an In pairs, role play meeting an adviser to talk Question cards adviser about one of the products identified earlier. (available in Short Use appropriate questions from the Talk to Programmes) Experts section of MGR. Take it in turns to be the adviser and client. 25 Practice test Individuals to have a go at practice test so Practice test that areas that need re-enforcing can be identified. 5 What next? Recap Next session will be looking at Complaints. Note: See the Useful resources section for information on: MGR: Money-go-round CD ROM BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 55
  56. 56. Unit 3 – Choosing Products and Getting Help Complaints Unit goal For learners to be able to select between competing products and identify appropriate sources of advice and help. Learning Outcomes The learner will be able to: 3.3 Know the sources of information and help that are available in the event of complaints about financial products. 3.4 Recognise how financial crime can affect the individual and understand how to protect against it. Minutes Topic Activity Resources 15 When to Brainstorm when you might complain about a financial complain? product. 10 Making a Input on making a complaint based on FSA’s section on complaint Making a Complaint www.moneymadeclear.fsa.gov.uk/guides/making_a_co mplaint 20 Financial In pairs visit the site for the Financial Ombudsman Internet Ombudsman Service (FOS) - www.financial-ombudsman.org.uk . access for Service Identify which types of complaints the FOS covers. pairs Record in Key Facts file. 15 Other bodies Input on bodies dealing with complaints outside the FOS dealing with scope. complaints Record in Key Facts file. 15 Financial In pairs visit the site for the Financial Services Services Compensation Scheme (FSCS) - www.fscs.org.uk . Compensatio Use the flowchart to find out when compensation may be n Scheme available. Make a note of anything not understood. Share findings. 15 Break 40 Writing letters Split the group into two. One half work through Copies of of complaint www.moneymatterstome.co.uk Consumer Rights and sample Responsibilities section on Buying Goods and the other letters from half work through section on Buying Services and then MMtoM compare notes. Complete a letter of complaint based on one of the sample letters. Put copies of sample letters in Key Facts file. 45 Financial Brainstorm scams and swindles to get access to your Paper, pens, crime personal and banking information. magazines, Come up with a list of 10 tips to avoid being a victim of scissors, financial crime. glue Make posters to alert others. In teams try the Office of Fair Trading quiz on scams. Prizes for the winners. www.oft.gov.uk/oft_at_work/consumer_initiatives/scams/ BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 56
  57. 57. Unit 3 – Choosing Products and Getting Help scam-quiz 5 What next? Recap Where next? Note: See the Useful resources section for information on: • MMtoM: MoneyMattersToMe website BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 57
  58. 58. Unit 3 – Choosing Products and Getting Help Handouts for Unit 3 BCS/PFQ1 Teachers Handbook/Nov07 © The British Computer Society 2007 58

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