Level 2 Btec Diploma in Business
Unit 20: Managing Personal Finances
Unit 20 Managing Personal Finances (5 Credits)
Assessment Sheet
Name:
………………………………………………………………………………
Assessment Criteria
Achieved
Pass 1
Outline ways of managing personal financial planning and accurate
record keeping
Pass 2
Identify sources of advice for ways of managing financial products and
services
Pass 3
Describe financial products and services appropriate to self
Pass 4
Construct a personal budget that takes account of personal
remuneration and expenditure
Merit 1
Explain the reasons for budgetary decisions
Merit 2
Analyse the different features of financial products and services relating
to current and savings accounts
Distinction 1
Justify reasons for financial planning decisions
P1
P2
P3
P4
M1
M2
D1
Points per credit (x 5 credits)
Pass
Merit
Distinction
5
6
7
Level 2
Final Grade Conversion Table:
L2 Certificate
(1 GCSE)
L2 Extended
Certificate
(2 GCSEs)
L2 Diploma
(4 GCSEs)
Pass
75-84
Merit
85-94
Distinction
95-99
Distinction*
100+
150-169
170-189
190-199
200+
300-339
340-379
380-399
400+
Overall Grade:
Pass
/
Merit
Points Awarded
For Unit 20:
/
Distinction
In submitting your work for assessment, you are confirming that the work is your own. On completion of this unit, this
document must be signed as a declaration that the work submitted is your own:
Assessor Signature: …………………
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Date: …………
Student Signature: …………………………… Date: …………
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Level 2 Btec Diploma in Business
Unit 20: Managing Personal Finances
Your Head of Year wants to introduce a personal finance course into the school’s PHSE programme.
She has asked you to research into how personal finances should be managed and the different types
of financial products and services that are available. She would also like the students to produce their
own personal finance budget and has asked you to draft one of your own. The work you produce
will form the basis of some teaching materials for the school’s PHSE programme.
MANAGING PERSONAL FINANCE
Task 1
Your Head of Year thinks it is important for students to understand why it is important to manage personal
finances and the methods they can use to ensure they remain solvent.
a)
Produce an information booklet for students which includes the following sections:
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The importance of avoiding debt
Reasons why people may or may not borrow money
Skills needed to manage personal finance effectively
Keeping financial records
Personal taxation
Keeping money secure (including secure payments eg direct debits; reducing fraud with ATMs and
PINs; and purchasing on-line)
This task provides evidence for P1
Submission date:
Friday, 11 March 2011
SOURCES OF ADVICE
Task 2
Produce a Powerpoint presentation that teachers can use to explain the different sources of advice for ways of
managing financial products and services. The Powerpoint presentation should include how the following
organisations can help people manage their personal finances.:
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Banks and Building Societies
Independent financial advisers
Finance companies (for purchasing on credit)
Retailers (store cards and personal loans)
Submission date:
This task provides evidence for P2
Friday, 25 March 2011
FINANCIAL PRODUCTS AND SERVICES
Task 3
As part of the PHSE programme at school, the Head of Year would like all students to learn about the different
types of financial products and services available. She would therefore like you to trial a worksheet she has
produced and give her feedback about the usefulness of the exercise. Details from the worksheet are below.
Follow the instructions and then complete the evaluation sheet for your Head of Year.
Bank Accounts
a)
You are leaving school soon and want to open a bank account. Find ONE bank account and ONE
savings account you could open. Explain the benefits of these two accounts. (P3)
b)
Compare the different features of these two accounts, including any disadvantages. (M2)
c)
Decide which account you would choose to open, justifying your decision. (D1)
Insurance Protection
a)
Now you are planning to start work, you need to consider taking out some insurance policies.
Find out about the following types of insurance policies: insurance on products, car insurance,
house insurance, life assurance. Explain the benefits of taking out these types of insurance. (P3)
b)
Explain any disadvantages of these insurance policies. (M2)
c)
Decide which insurance policies you would take out, justifying your decision. (D1)
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Level 2 Btec Diploma in Business
Unit 20: Managing Personal Finances
Loans
You would soon like to buy yourself a car but you will need to borrow some money (£5,000) to be able to do
this.
a)
Find TWO “unsecured” loans you could take out. Explain the benefits of taking out these two
loans.
b)
Compare the different features of these two loans, including any disadvantages. (M2)
c)
Decide which loan you would choose to take out, justifying your decision. (D1)
Mortgages
You would also like to find out how much a mortgage would cost you each month if you borrowed £60,000.
a) Find TWO mortgages you could take out. Explain the benefits of taking out these two loans. (P3)
b) Compare the different features of these two mortgages, including any disadvantages. (M2)
c) Decide which mortgage you would choose to take out, justifying your decision. (D1)
Credit Cards
To help manage your finances, you are considering applying for a credit card.
a)
Find TWO credit cards you could apply for. Explain the benefits of having a credit card. (P3)
b)
Compare the different features of the two credit cards, including any disadvantages. (M2)
c)
Decide whether or not you would apply for a credit card, justifying your decision. (D1)
This task provides evidence for P3, M2 and D1
Submission date:
Friday, 8 April 2011
PERSONAL BUDGETING
Task 4
Your Head of Year wants all students to construct their own personal budget taking account of personal
remuneration and expenditure. This budget must take account of all aspects of income and expenditure that
someone would have if they lived on their own.
a)
Based on your expected personal finances once you have left school, design and produce an
annotated personal budget that includes the following elements (at least FOUR items of income
and EIGHT items of expenditure):

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
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Wage/salary
Overtime/tips/bonus/commission
State benefit
Interest from savings account or investments
Gifts/inheritance

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Accommodation
Income tax
Utility costs
Travel
Food
Clothing
Communication (Mobile phone, telephone, internet)
Leisure activities
Savings
Special occasions
Credit card or loan repayments
b)
This task provides evidence for P4
Briefly explain the structure and format of your personal budget, and explain the benefits of using
a spreadsheet to record personal finances.
This task provides evidence for M1
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Level 2 Btec Diploma in Business
Unit 20: Managing Personal Finances
Final date for submission is:
Tuesday 19th July 2011
Assessment and Feedback Record
Name:
…………………………………………………………………
Interim Deadline 1:
Interim Deadline 2:
Final Deadline:
Task 1 and 2
Task 3
All tasks
Friday, 10th June 2011
Friday, 1st July 2011
Friday, 19th July 2011
Interim Feedback 1
Signed: …………………………………………………………………
Date ……………………
Targets for improvement
1.
2.
3.
Signed: …………………………………………………………………
Date ……………………
Interim Feedback 2
Signed: …………………………………………………………………
Date ……………………
Targets for improvement
1.
2.
3.
Signed: …………………………………………………………………
Date ……………………
Summative Feedback
Grade:
Signed: …………………………………………………………………
Date …………………………………
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