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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Describe the financial life cycle of an individual and how this influences financial decisions 
SAQA US ID UNIT STANDARD TITLE
230077  Describe the financial life cycle of an individual and how this influences financial decisions 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14523  Describe the financial life cycle of an individual  Level 5  Level TBA: Pre-2009 was L5  10  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for Intermediaries and Learners in the Financial Services Sector who work in Product Development, Marketing, Product Supplies, Management, Call Centres or who give Financial Advice or Engage in Wealth Management or Financial Planning, including, but not limited to, Banking, Long-Term Insurance, Investment and the Associated Products. It will be useful for learners who give financial advice and who are required to understand individual clients at different stages in their lives and how the client's risk profile and tolerance influence financial advice. It is assumed that the client has an income.

The qualifying learner is capable of:
  • Analysing the wants and basic needs of an individual at different stages in his/her life cycle.
  • Describing the dynamic nature of income and expenditure typical at different stages of an individual's life.
  • Explaining the interrelationship between an individual's basic needs and wants and the implications for a financial plan.
  • Interpreting critical events that trigger entry into a new stage in the financial life cycle. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication, Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The Unit Standard range assumes an income, but does not preclude individuals without a regular income and includes individuals from diverse backgrounds.
  • Events that trigger entry into a new stage in the financial life cycle include, but are not limited to, new position at work, promotion, retrenchment, upgrading qualifications, marriage, divorce, addition to the family, death in a family, age of individual, age and education level of children, purchasing a home.
  • Life risk related events include retirement, job change, mortality, morbidity and dread disease.
  • The lifecycle should include individuals from diverse backgrounds.
  • Values and wants could be influenced by a client's background, operational environment, culture, education.
  • Wants refer to an individual's wants at a specific time or stage. Needs are generalised for the population.
  • Lifestyle choices include, but are not limited to, level of credit, physical and material acquisitions. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the needs and wants of an individual at different stages in his/her life cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Theories relating to needs and the life cycle of an individual are used to create a model that illustrates the wants and the basic needs of an individual at different stages in his/her life cycle. 

    ASSESSMENT CRITERION 2 
    The effect of attitudes and values on an individual's perception of wants and basic needs is explained with examples. 

    ASSESSMENT CRITERION 3 
    The attitudes and values of at least three individuals are surveyed and applied to the model and deviations from the model are explained for each individual. 

    ASSESSMENT CRITERION 4 
    The influence of an individual's occupation and avocations, and lifestyle on basic needs and wants is explained with examples. 

    SPECIFIC OUTCOME 2 
    Describe the dynamic nature of income and expenditure typical at different stages of an individual's life. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The change in attitudes and values of an individual over time are explained with reference to the impact of change on income and expenditure. 

    ASSESSMENT CRITERION 2 
    The expenditure for a minimum of three people at different stages in life, but with the same income is compared in terms of acquisition of assets, savings/investments, preservation of capital and provision for life risk related events. 

    SPECIFIC OUTCOME 3 
    Explain the interrelationship between an individual's wants and basic needs and the implications for a financial plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Stages of the financial life cycle are illustrated with examples and correlated with the want and basic needs of an individual at each stage. 

    ASSESSMENT CRITERION 2 
    Potential financial solutions are suggested for events that can be planned for to ensure the least possible financial disruption. 

    ASSESSMENT CRITERION 3 
    Possible lifestyle choices are analysed and the analysis is used to predict the potential impact of each choice on the individual's financial situation. 

    ASSESSMENT CRITERION 4 
    The implications of changing wants and needs on a financial plan are explained with examples. 

    SPECIFIC OUTCOME 4 
    Interpret critical events that trigger entry into a new stage in the financial life cycle. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Events that can trigger entry into a new stage in the financial life cycle are named and an indication is given of the potential financial impact of each event on the financial plan. 

    ASSESSMENT CRITERION 2 
    Changes in the external environment that can impact on an individual's financial plan are identified with reference to the political, legislative, social, economic and physical environments. 

    ASSESSMENT CRITERION 3 
    Possible solutions to manage changes in an individual's wants and basic needs from one stage in the financial life cycle to another are proposed for different scenarios. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made suggesting ways to manage change from one stage in the financial life cycle to another. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order to create a model that illustrates the relationship between needs and the financial life cycle. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining his/her model. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in explaining the interrelationship between stages in life and the financial life cycle. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 14523, "Describe the financial life cycle of an individual", Level 5, 10 credits.

    Search words:
  • Lifecycle, financial planning, life stages, individual needs. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.