teach me final assignment

7/28/2019 Teach Me Final Assignment

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Teach Me Assignment Booklet and Guide

For the candidates

Candidate Full name: Dora Meade

Submission Date:

I certify that this work is all mine: yes

To be completed in case of resubmission

Second try: yes/no Date:

Third try: yes/no Date:

For the tutor only

Tutor name:

First try

Date:

Comments:Outcome: PASS/REFER

Second try

Date:

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Outcome: PASS/REFER

Third try

Date:

Comments:Outcome: PASS/REFER

Guidance

1


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The standards by which this qualification is assessed can be found on the Teach

Me course under Learning outcomes. In this section, youll be able to find the

Learning Outcomes (LO) and Assessment Criteria (AC) for this qualification.

To pass the assignments, all of the assessment criteria must be met. To help

you, the LO's and AC are identified on the assignment and care should be takento fully cover the assessment criteria in the answers given.

Where you are asked to 'Explain', 'Analyse', 'Summarise', 'Justify', 'Differentiate'

or 'Critically Compare', then a greater degree of detail, critical thinking and

illustration is required. A brief overview of terminology can be found at Appendix

A.

While the Teach Me online support materials offer sufficient to successfully

answer the questions below, sources and further reading to develop deeper

knowledge and critical thinking can be found at Appendix B.

When you have completed the Assignment Booklet please check your answers

before uploading the final assignment to your Assessor through Moodle.

You will find resources to help you answer questions 1,2 and 3 under'Concepts and Implications of financial exclusion in the Teach Me onlinematerials.

Q1.1 Write a one sentence definition of Financial Exclusion, quotingwhere the definition came

from.

Financial Exclusion denotes an individual or community that do not haveaccess to the desired and appropriate financial services to help them tomanage their own finances effectively. The impact of financial exclusion is alack of financial products such as bank accounts, savings accounts andpensions (and the financial services that go with them) and a reliance on creditsuch as doorstep lenders and pawnbrokers.

Taken from http://transact.org.uk

Assessment Criteria 1.1 Explain three causes of, and the impact of,financial exclusion

Q1.2 List 3 groups of people who may be financially excluded (e.g.unemployed people with

low literacy skills).

i) Lone parents with cultural or language barriers

ii) Long term unemployed with a reliance on benefits

iii) Lone pensioners, particularly widows

2

Learning

Outcome 1:

Understand

the conceptof financial

exclusion

and its

impact on


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Q2. Complete the table below by naming at least three (and up to five if

you can) causes of financial exclusion and identify one effect for each

cause of financial exclusion for the individual AND their family.

Q3. Select only three of the causes of financial exclusion that you

identified in the table above and offer a full explanation of those causes

and their impact.

Three contributing factors or causes of financial exclusion are language and cultural barriers,mental health issues and a break up of a relationship or breakdown of family.

1. Language and cultural barriers can stop people accessing or

understanding the range of financial products open to them due totheir inability to read or understand the necessary literature. It mightbe very difficult for them to speak to sales staff and feel confidant toask the necessary questions to ensure they are getting the rightservices. Further, as is the case with Sharia banking, interest rates onsome savings or loans may be unacceptable on cultural or religiousgrounds. This barrier could impede people from accessing financialproducts such as bank accounts, savings account and sound financialadvice that is open to them. This could also incur extra costs e.g.paying by direct debit can make bills cheaper. It also may mean thatthey are tempted to rely on payday loans, door step lenders or loansharks because they can appear simpler and less intimidating in thefirst instance, some companies or illegal lenders may target individuals

with language barriers because they know that they are in a vulnerableposition. This in turn may lead them to being unable to keep up

3

Financial Exclusion

Possible Causes Effect/Impact

Individual Family1. Mental Health

Issues

Could cause prolonged periods ofabsence from work which wouldincur significant costs as well as aloss of income

Reduce the overall income of the householdas it puts an extra financial burden on thefamily and could stop the income from awage earner

2. Redundancy /change in income

Drop in income and impact on abilityto sustain outgoings .

could impact on credit score of wage earner ifunable to keep up replayments on bills whichcould result in difficulty to get loans or creditin the future impacting the families abilitiesto take loans for necessary things.

3. Breakdown of arelations or family

Significant emotional strain andchange in finacial burden in thehousehold

Could end up with a reliance on credit and/oreating into savings that were to act as asafety net for when the children were older

4. Language andCultural Barriers

Unable to gain the financial productsor advice needed to save or accesskey financial products such as abank account

May increase reliance on loan sharks orunauthorised credit agencies in the future,lack of financial education or understandingpassed onto other members of the family.

5. GeographicalLocation

Unable to access bank accountregularly which makes it difficult to

set up or keep paying inot regularly

Unable to budget or get to grips with financeswith no access to a bank account or financial

advice.


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repayments, taking out bad debts, which could lead to a poor creditscore in the future. As well as the emotional stress and the threats ofthe lenders this will impact on the ability of the person with bad debtsto access financial products in the future leading to further financialexclusion.

2. Whilst some people may have mental health issues that do not impactat all on their finances, in other circumstances it may have adetrimental impact. Broadly, mental health issues can impact on anindividuals ability to hold down a job and maintain a regular income.This may mean a drop in the family and individual finances whichmight arise at short notice and be difficult to plan for. It may alsoimpact on an individuals ability to make and stick to a money planwhich will help them keep out of debt and in a sound place financially.In turn this will impact an individuals ability to keep up with regularpayments to creditors, into a savings account, utility bills or counciltax. This could impact negatively on an individuals credit score whichcould stop them from getting a loan in the future. This may mean theyare forced to rely on payday loans, doorstep lenders which would lead

to them paying more in interest in the future. Ultimately, if someone isunable to keep up repayments or manage their finances they couldend up with priority debts that could mean they face disconnection,prison and further financial exclusion.

3. Breakdown in the family or a break up of a relationship can be a causeof financial exclusion. The affect on the individual and family isemotional as well as financial which may mean it takes some timebefore financial issues are adequately addressed. A change ofcircumstance is one of the biggest contributors to financial problemsand consequently financial exclusion because the household budgetchanges significantly. This may mean that members of the family endup using family savings, relying on credit cards or loans to pay theutility bills and council tax. Ultimately, if the debts spiral out of controlthis could lead to disconnection or repossession if repayments are notkept up. This will have a detrimental impact on the communication andwell being within the family, having a particular impact on children itmay mean they have to move house, change schools and feelunstable.

Assessment Criteria 1.1 Explain three causes of, and the impact of, financialexclusion

Write circa 500 words at this point. ........

Q4. In the table below identify one unexpected event for each life stageand briefly explain how it can adversely affect finances.

Assessment Criteria 1.2 Analyse the main life stages and unexpected events thatcan affect finances

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Q5. The following case study extract is from the Teach Me Resourcessection. Describe how Roger could get into the cycle of debt, and explain

what it is.

Assessment Criteria 1.3 Explain the Cycle of Debt and its effect on individuals andfamilies

In 2006 we were your average family and I had a job. We lived in a nice semi in a leafysuburb, had a 2 year old Volvo and we had a good lifestyle. Once I left my full time joband started University as a student we continued to live as wed always done going tothe cinema, eating out as a family, and taking our annual 2 weeks holiday to Ireland. Ihad a part time job and so did my wife Leanne. Together we brought in 1500 a month.When, as happened quite soon, we didnt have enough cash we used one of the 4credit cards we had between us. Over the three years of doing the degree our savingsdwindled rapidly as our regular outgoings outstripped our income by 1500 a month.Part way through 2008 our savings had more or less gone and we took out a loan of6000 from the bank. We could not make the monthly payments on the mortgage or

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Financial Lifecycle Unexpected Event and explanation of how itaffects finances

(circa 80-100 words each)

Teenager (13-19)Loan needed to get qualification.

Young Adult (18-25)

Car Accident. The Impact would be that they would need tomake an Insurance claim, this might impact on subsequentinsurance claims, making them more expensive. Excesswould also have to be paid out which might have an impacton their finaces at that point. If this person is a student theymay be depending heavily on an interest free overdraft thatwill expire at some point so they need to be saving to be ableto work their way out of it when this happens.

Mature Adult (26-40)

Redundancy of the individual or someone within thehousehold. This would lead to a quick and significantdecrease in income which could have an impact on the

households ability to maintain repayments for loans or theirmortgage if they are a home owner. In the worst instance thiscould lead to repossession of their assets or disconnection.

Middle Aged (41-60)

Prolonged period of ill health. The impact may be a decreasein income and the inability to sustain employment. This couldhave a severe impact on the household and the individualsability to pay utility bills, loans, creditors or council tax.Depending on the type of debt this could lead to a countycourt order, prison or disconnection.

Late Middle Aged (55-65)

Death of partner. The impact may be a sudden drop inincome (if they did not have life insurance) and theincurrance of funeral costs which can be significant. Thiscould lead them to taking out additional loans or using their

saving that were intended for retirement which could leadthem to being a finacially insecure situation in later life.

Old Age & Retirement(65+)

Severe flooding in the home, a fire or some other structuraldamage. The impact coud be a large amount has to be paidout, this would be particularly problematic if they do havehome insurance. This may significantly damage the finacialsecurity of the household, particularly as they are not in aposition to be able to earn much money to make up anydeficit.


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Q6. Explain the differences between the services of three of

the agencies below (one of those chosen should be

regulated), critically comparing and contrasting the

information, advice and guidance (IAG) offered, and making

reference to any regulatory obligations in your answer.a) Citizens Advice Bureaux

The CAB offer free, impartial, confidential and independent advice and

information on citizens rights and responsibilities over the phone, face

to face and online. Whilst they offer information on a range of issues, a

central aspect of their service is offering financial guidance. Key to the

guidance they offer, distinct from just offering financial information, is

that they are able to assess an individuals situation; they can then offer

guidance and information about appropriate services and products

suitable to the needs of the individual. Employees and volunteers

working as part of the CAB are qualified and able to offer help and

guidance in this area. Their services are particularly important when anindividual wants to make an important decision, when they would like

help regarding their current situation or they are keen to plan for the

future. The advice is tailored to a persons specific situation but it is

impartial. The CAB offers financial guidance and information that aims

to be the best for the client given their overall situation.

b) Money Advice ServiceThe Money Advice Service offers financial information in the form of a

website and a phone line. They are an unbiased service, set up by the

government to try and help people make the most of their money. The

Money Advice Service does this by primarily by offering consumersinformation about financial services and products as well as knowledge

of key financial matters. It also offers its own resources such as a

budget planner or a health check. These services try and help people

to gain behavioural insight into their own finances to then help them to

take financial action. Importantly, the Money Advice Service does not

give judgement or opinion on an individuals financial situation, they

provide information to try and enable people to make the best decisions

for them. They do not tailor the information to specific needs or assess

the financial situation of an individual unlike the CAB.

Financial AdvisorProfessional financial advisers carry out a more substantialinvestigation, asking detailed questions about the clients

circumstances, goals and how they feel about taking risks with their

money. Then they recommend financial products that are suitable and

affordable for the client. The Financial Services Authority is a

Government appointed regulator for the financial services industry. One

specific sub-set of financial advice is concerned with investments

investments can be more risky as it doesnt entail a specific interest

rate but the risk can pay off with greater rewards. Investment advice

can be multi tied, tied or independent which relates to the advice givers

impartiality and breadth of advice that they can offer. Distinct from

guidance and information, financial advice is very in depth in terms of

the amount of time and effort an advisor gives to the client. Also, they

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Learning

Outcome 5:

Understand

the

difference

betweenfinancial

information,

advice and

guidance

Learning

Outcome 6:

Know where

to access

information,

advice,guidance

and support

in relation to

financial

products

and services


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can have certain products or companies that they have an interest in

promoting rather than being impartial.

Assessment Criteria 5.1 Explain the difference between financialinformation,

advice and guidance

Assessment Criteria 6.1 Critically compare three agencies thatoffer information,

advice, guidance and support in

relation to financial

Products and services.

Write circa 500 words at this point......

Q7. Complete the information below on the structure of theAdult Financial Capability Framework

Assessment Criteria 2.1 Explain how the adult financial capabilityframework is

Structured (AFCaF).

The framework has three sections covering the threeinterrelated areas that go together to form financial capability.The three interlinked sections are:

1. Financial Knowledge and Understanding

2. Financial Skills and Competence

3. Financial Responsibility

There are three levels in this framework. The three levels are:

1. Basic understanding and developing confidence

2. Developing competence and confidence

3. Extending competence and confidence

Each level is divided into nine components. The ninecomponents are:

1. Different types of money payments

2. Income generation

3. Income disposal4. Gathering financial information and record keeping

7

Learning

Outcome 2:

Understandthe format

and

structure of

the adult

financial

ca abilit


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5. Financial planning saving, budgeting and spending

6. Risk and Return

7. Personal choices and their financial implication

8. Consumer rights, responsibilities and sources of finance

9. Implications of finance

Q8. Complete a short action plan below to identify possibleareas of financial skill and knowledge that you would like todevelop further. Reference to the AFCaF if you find thisappropriate [may be found at: http://shop.niace.org.uk/adult-financial-capability-download.html]. The first row has beencompleted as an example. Add rows as necessary

Assessment Criteria 2.3 Develop a plan to improve ownpersonal finance skills

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Topic Knowledge(I need to know)

Skill(I need to be able

to)

How would I do this? AFCaFreferenc

eBudgets Layout of, and

content for, atypical budgetplan

Write a budgetplan

Acquire a Pro Forma budget

Plan from the Internet or aBank

Use a case study to predict

future spending needs andrecord a budgetto plan forthem

D (e) 4

IncomeDisposal

Furtherknowledgeabout tax,pensions,nationalinsurancecontributionsand howdeductions are

made

Offer advice inthis area

Research what taxes are usedfor and how they are collected

Analyse different case studiesto see what their tax, pensionsand national insurancecontributions would be

B (c) 3

Financialresponsibility

Further myunderstanding ofdifferent sourcesof advice andinformation

A increasedunderstandingso that I canaccuratelysignpost andrefer people on

Perform a mapping exercise ofrelevant agencies in the areathat I work

Collate information on where

people can go to receiveinformation, guidance andadvice

B (h) 1

Learning

Outcome 2:

Understand

the format

and

structure of

the adult

financial

Learning

Outcome 3:Understand

financial

products

and how

they

address

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Q9. Based on the 'Ali' case study below, briefly explain thebenefits of budgeting and financial planning process to Ali[AC 4.1] and how to collect, record, interpret and act onfinancial information for financial products and services [AC4.4]. You should suggest and describe types of bank account,

insurances, savings plans and credit and apply these to hisimmediate and future needs [AC 3.1, AC 4.2]. [AC 3.2].Justify why these products and services would be best forhim [AC 4.3] at this stage in his life.

Advisement.

Completing this task thoroughly sentence by sentence as it arises in the

question will help you to avoid missing any assessment criterion [AC].

Assessment Criteria 3.1 Analyse how bank accounts,insurance, saving plans

credit/loans may meet people's

needs.

Assessment Criteria 3.2 Summarise the key features of twopersonal finance products that have a religious/ethical

theme.

Assessment Criteria 4.1 Explain the process of financialplanning.

Assessment Criteria 4.2 Apply the financial planning processdecision-making

taking into account personal

circumstances. For example,

deciding to buy or rent a home,

saving for retirement or

decisions about insurance.

Assessment Criteria 4.3 Justify the appropriateness offinancial products and services

suggested as meeting the needs identified.

Assessment Criteria 4.4 Explain how to collect, record,interpret and act on

information.

Ali Case study

Ali is 23, a Muslim, and lives in a middle-income household with his elderly parents

and two younger sisters. He has worked as a Departmental Under-Manager for a

large multiple chain store since leaving school and earns circa 16,000 basic and an

annual bonus. Ali left school with 2 'A' levels at the age of 18 and thinks that he has

good prospects at work but worries about redundancy and securing another job

because of his educational background. Not having a degree he feels inadequate as

most of his friends are just leaving University, and so he has enrolled on a part time

degree course at the local college. He has been in a strong relationship for over one

year and wants to move out and have a place of his own as well as his own car,although this independence worries him in terms of managing his finances,

9

Learning

Outcome 4:

Be able to

apply the

financial

planning

process to

personal


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particularly providing for a wife and family and, given the state of the economy, his

financial future in retirement. Ali has a debit card and is a saver by heart, and

cautious by nature. His aunt recently died and left him shares that are valued at

10,000, although he has never understood how the share market operates and has

never taken the time to learn about financial products. He needs guidance.

- Briefly explain the benefits of budgeting and financial planning

Budgeting and sound financial planning will allow you to get a clear picture of

your financial situation which will help you plan for the future and achieve the

financial goals you set yourself. It will help you to ensure that you make the most

out of your money and prevent you from getting into debt or putting yourself in a

precarious financial situation. Financial planning is the first step to alleviating

stress or staving off money worries. Budgeting and financial planning will ensure

that you are able to cope successfully with any unforeseeable event as well asachieving your long term goals and aspirations. In your case, it will allow you to

juggle studying and getting work and hopeful help you transition to a greater

degree of independence in the future.

Firstly, it is very important to do some research to understand the different

financial products that are available to you. There are multiple avenues that offer

comprehensive and detailed financial information. If you would like financial

information, there are some very useful websites such as

www.moneyadviceservice.com and moneysupermarket.com. It might also be

good to listen to regular podcasts that outline certain topics that are relevant atthe moment such as BBCs Moneybox.

For you to start your financial planning on the right foot it would be worth

keeping a spending diary for the next month. This will give you insight into your

day-to-day spending and highlight areas where you could save some money.

Alongside this, it would be good to put together a money planner. Try and put

aside some time to look at your incomings and outgoings and write them up into

a budget spreadsheet you can find some very useful budgeting resources on

the money advice service website. Remember to include your regular out-goings

such as contribution to utility bills but also your annual or ad hoc spending such

as a holiday or your books for University, try to include this to get a good

overview of your finances. Once you have written down your in and out goings it

would be good to think about your long term goals and other payments that will

come into effect in the future such as paying back your student loan. Sit down

with your bank statements, loan information, spending diary and any other

financial information you have to make this as comprehensive as possible.

At the moment you have a debit card which is the simplest way to access your

money. As you are keen to save, I would recommend opening an account for

saving money and putting aside some money every week or month if you do

this remember to include it in the out-goings section of your budget. It would be

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http://www.moneyadviceservice.com/http://www.moneyadviceservice.com/


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worth shopping around to ensure you get the best deal for your savings account.

Many banks in the UK offer Sharia compliant bank accounts, rather than gaining

interest on your savings they will be invested in profit generating activities that

are Sharia compliant some of the profit will then be passed on to you. Also, you

might consider saving with your local Credit Union. In this case, you may make

some extra money through dividends if the Credit Union is making a profit.Saving with the Credit Union would also open up the possibility of taking loans

with them which may be useful in the future, for a car for example.

I would also consider taking out a credit card, if you are cautious with what you

spend and ensure you pay it off every month, this will increase your credit rating

which will help you when you apply for a mortgage in the future. However, if you

would like a sharia compliant savings plan I would recommend setting up a

savings account with the Credit Union. They do not offer interest but saving them

will give you access to s

2 x financial products that have a religious theme

- how to collect, record, interpret and act on financial information for

financial products and services

- You should suggest and describe types of bank account, insurances,

savings plans and credit and apply these to his immediate and future

needs

- Noting that Ali is a Muslim, explain the key features and benefits of a

Sharia-compliant mortgage, and an ethical investment product for

pension planning to prepare for his retirement- Justify why these products would be good for him at this stage in his

life.

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Appendix A - Assessment terminology used for Teach Me

Analyse

Break down an argument or information into smaller parts and identify how

these parts are connected.

Apply

Use a concept in a particular situation.

Compare and Contrast

Identify the similarities and differences between two situations or things.

Critically - question the information given.

Define

State the meaning. Try to keep this short and clear and use an example to

illustrate.

Explain

Is about demonstrating comprehension and understanding. Writing clear

sentences to make clear the issue and try to provide 'why' or 'how' in your

explanation.

Justify

Support an argument and state the reasons why you think it to be true.

SummariseIs about giving an overview of the main ideas or points in a condensed form.

Possible Sources

Transact is the National Forum for Financial Inclusion found at

http://www.transact.org.uk/

FINANCIAL SERVICES PROVISION AND PREVENTION OF FINANCIAL EXCLUSION

(March 2008) found at http://Ec.europa.eu/employment_social/spsi

National Institute for Adult Continuing Education (Niace):http://shop.niace.org.uk/adult-financial-capability-download.html

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http://www.transact.org.uk/http://ec.europa.eu/employment_social/spsihttp://shop.niace.org.uk/adult-financial-capability-download.htmlhttp://www.transact.org.uk/http://ec.europa.eu/employment_social/spsihttp://shop.niace.org.uk/adult-financial-capability-download.html