Code: BUS002
Title: Managing Money
Pre-requisites: Nil
Outcome levels: Level 5/6
Coordinator: Ms M Murray

The benefits of improved financial literacy to individuals and the community are many. Knowing how money works can allow individuals to understand the benefits of saving, make wise spending and investment choices and potentially secure a sound financial future. 

A financially literate person has the ability to use their money and credit responsibly, the confidence to manage financial risks and has a positive attitude towards financial planning.

This unit offers students a fun, interactive way to learn the skills necessary for future financial success.

Topics

• Personal Finance
• Budgeting
  • Personal finance goal setting in the short term
  • Sources of income and expenses
  • Drawing up a budget
  • Advice from the professionals
  • Readjusting to changed circumstances
  • Monitoring a budget
  • Who else budgets?
  • The budgeting game - putting it all together
• Saving and Investing
  • Identifying saving
  • Attitudes to saving
  • Why save?
  • Setting saving goals - the power of time and commitment
  • Developing a personal investment approach
• Case Studies - purchase of a mobile phone
• ASX (Australian Stock Exchange) - participation in the online Sharemarket Game
• ‘Quicken’ Accounting Software

Assessment

• In class test (end of term)
• Assignment (end of semester)

At completion students should know

• Managing your income requires a plan.
• Personal values and goals should be considered when developing a successful budget.
• Budgeting is an essential lifetime skill.
• There is assistance available for budgeting.
• A budget should balance the income earned with the amount spent and saved.
• A budget should be based on an accurate record of expenditure.
• A budget should be evaluated and adjusted regularly to meet changing circumstances.
• Financial records are required to monitor a budget.
• Budget definition, components and use.
• Important budgeting terminology.
• The role of savings in a budget.
• The role of short term and long-term goals in the budgeting process, as well as the importance visualisation of goals can play in achieving these goals sooner.
• Achieving financial independence requires a savings commitment and an understanding of the principles of investment.
• Savings is a long-term, lifetime habit.
• Successful investing requires a plan, based on knowledge.
• Security lies in diversifying investment choices.

At completion students should be able to

• Prepare a personal financial budget that considers the expenditure incurred over a 12-month period.
• Use ‘Quicken’ Accounting Software to prepare budgets.
• Describe the role saving plays in achieving financial independence.
• Make informed savings decisions based on their goals.
• Identify incentives and barriers to personal saving.
• Recognise the principles for achieving financial independence.
• Recognise changing life cycle savings and investment opportunities.
• Understand the need to diversify investment choices.
• Recognise the range of investment options.
• Describe the process involved in preparing a personal investment strategy and the assistance available to achieve investment goals.
• Access the vast array of internet-based resources.
• Work independently and as part of a team.
• Apply problem-solving skills.
• Analyse and interpret complex information.
• Make comparisons and draw contrasts.
• Draw conclusions and justify these conclusions with evidence.

Literacy elements

• Financial Literacy skills as defined by the Financial Basics Foundation.
• Oral, print and multimedia literacy.
• Focus on subject specific words and their definitions.
• Focus on subject specific spelling.
• Paralinguistic features (spatial arrangements, tables, illustrations).
• Use of generic task sheets.
• Critical analysis of text, tables, illustrations, case studies.

Integrated technology

• ‘Quicken’ Accounting Software.
• Internet for research purposes.
• Use of ‘Microsoft Word’ and ‘Microsoft PowerPoint’ for assignments.

Assignment guidelines

Please refer to the Assignment Guidelines on how to set out bibliographies and references.  

Resources

TBA

Related Links

TBA