SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

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	8
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Reregistered"		2018-07-01	2023-06-30	SAQA 06120/18
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2026-06-30		2029-06-30

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

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	NQF Level 05	Passed the End Date - Status was "Reregistered"	2023-06-30	As per Learning Programmes recorded against this Qual
Elective	57918	National Certificate: Short Term Insurance	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "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.

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