CHCEDU005 Learner Guide V1.0 2024

CHCEDU005 Work with clients to identify financial literacy education needs.
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Version 1.0 Created April 2024 by The FIQ Project Pty Ltd
CHCEDU005 Learning Guide V1.0 April 2024 Page |2

Table of Contents

Learning support material
This section addresses the following performance criteria:

 Identify and communicate the role and limits of a financial literacy educator with client.
 Refer appropriately to specialist services according to clients’ priorities.

1.0 Identify roles and boundaries relevant to role of financial literacy

education.
The Australian Securities and Investments Commission (ASIC) is an independent

Commonwealth Government body that regulates Australian companies, markets and financial
services.
One of ASIC's roles is to help Australian consumers make informed decisions about financial
products and services through financial literacy education.
ASIC (2015) defines financial literacy as:
‘The ability to make informed judgements and to make effective decisions regarding the use
and management of money.'
The role of a financial literacy educator is to assist and equip people with the skills to make their
own decisions about their finances, financial products and services. If necessary, a financial
literacy educator might identify where the client needs professional assistance.
People on low incomes and young people aged between 18 to 24 years of age can have a lower
level of financial literacy. Insufficient financial literacy can also be linked to an increase in
household debt and a decrease in savings, assets and retirement income.
The clients of a financial literacy educator might be individuals, families or groups of consumers
who are experiencing disadvantages with regard to their financial situations.

Clients could include:

 young people
 the aged
 community groups
 people receiving Centrelink/support payments
 NDIS Recipients
 people with a disability
 people exiting custodial or rehabilitation centres
 people exiting domestic and family violence
 new immigrants to the country
 women, particularly those who are exiting a relationship
 ATSI people
For many consumers, the management of their finances is becoming more and more
complicated. The tax system is complex; superannuation and investment strategies are difficult
concepts for many to grasp, and scams are becoming commonplace.
You need to be aware that the role of a financial literacy educator is not to provide financial
advice to clients, such as suggestions about which bank they should use or where they might
invest their money.
A financial literacy educator's role is to provide information on a variety of topics that will
increase your clients' financial literacy and enable them to better manage their financial affairs.
One way of doing this might be to help clients create a realistic budget for their needs.

Creating a budget plan can assist clients to work out their total income minus expenses and better
determine where their money is going and where positive changes can be made. There are many
sample budget planners available on the Web. A great example can be found at the Money Smart
website: https://moneysmart.gov.au/budgeting
Some other topics that a financial literacy educator might discuss with their clients might be to:
 set clear goals for the future
 save money
 identify where money is going and spending leaks (impulse buying)
 identify the right bank account for individual needs
 have awareness of financial rights and responsibilities
 manage debt
 become familiar with the basics of superannuation
 provide information about how credit cards and interest rates work
A financial literacy educator needs to be able to recognise when it is necessary to refer clients to
a suitably qualified person or organisation if they can no longer provide the level of assistance
needed.
A financial literacy educator can also encourage and support clients to increase their skills and
confidence when dealing with their finances in the future by creating a financial literacy program
to suit.
Clients will have different motivations and attitudes to their finances resulting from their own
personal experiences. Programs need to be focused upon the individual needs of clients, rather
than imposing a one-size-fits-all program.
By tailoring a financial literacy program to each individual client, there is a better chance of
addressing their specific needs. You can encourage your clients to feel a sense of pride and take
ownership of their achievements so that they will be motivated to continue and consolidate their
learning.
Higher financial literacy can contribute to greater economic prosperity and create new jobs due
to increased productivity and more informed decisions made on starting new businesses or
purchasing a home.
It also means that people are able to make better investment and spending decisions reducing the
need for social security payments and increasing national savings and retirement income. A
financial literacy educator can assist in achieving these outcomes.

Limitations
A financial literacy educator equips people with the necessary skills to make their own decisions
about financial products and services, or to identify where they need professional assistance.
There are limits, however, on the information that a financial literacy educator can provide.
A financial literacy educator must not offer financial advice or provide any services they are not
qualified to offer. You may tell a client about what kind of bank accounts are available to them,
such as a transaction account, a bonus saver etc. You must not tell them which account to use,
that is ultimately their choice.
ASIC Regulations
Regulations state that if you provide a financial service you need to hold an Australian Financial
Services (AFS) licence.
A financial literacy educator can provide information on various financial products but cannot
give any recommendations or provide an opinion that might be interpreted as trying to influence
a client to choose a particular financial product or service such as a bank account or a
superannuation fund.
Some of the things you need to be aware of when planning your financial literacy education
program are:
You Can: You cannot:
 advise a client how to save money  advise a client what particular

 advise a client how to avoid or account they should deposit their
manage debt money
 outline to a client the main features  advise a client which financial
of a financial product product is best
 inform a client about the savings or  advise a client based upon your own
investment options that are available personal experience and advice
 hold a seminar and invite the owner
or representative of a financial
product to speak

If a client in your financial literacy program tells you they have a sum of money they are unsure
what to do with, you are allowed to provide factual information to the client. This might involve
telling the client about the different types of accounts that are available and the varying interest
rates on savings accounts and term deposits.
If you were to mention later that you are aware of a particular account that attracts a higher rate
of interest at a certain bank, this could be regarded as you trying to influence your client to
choose that particular account. This means you are providing financial product advice and, as a
financial literacy educator, you are in danger of breaking the law, even if the advice is only based
upon personal experience.
ASIC has issued guidance about the difference between factual information and financial product
advice. ASIC should always be consulted if there are any doubts about the information being
presented to clients.
Other information limits
There are also limits on the information you can provide when referring clients to other
organisations.
If a client is experiencing complex financial issues, you might have to refer that client to other,
more specialised services.
A financial literacy educator is bound by privacy legislation and the Australian Privacy
Principles (APPs) to maintain the confidentiality and security of a client's personal information.

1.1 Australian Privacy Principles (APPs)
Thirteen APPs form the core of the Privacy Amendment (Enhancing Privacy Protection) Act
2012, which amends the Privacy Act 1988. These principles regulate the handling of personal
information by Australian Government agencies and some private sector organisations. They set
the minimum standards for privacy that organisations must meet and cover the whole
information handling life cycle-from the collection of information to its storage and
maintenance, as well as its use and disclosure.
APP 1-0pen and transparent management of personal information. Service providers need to be
open about how they handle information. They must develop documentation which clearly
explains to clients how their information will be handled. The document must be made available
to anyone who asks for it.
APP 2-Anonymity and pseudonymity. Where lawful and practicable, consumers must be given
the option to use services without identifying themselves. There are some exceptions to this
principle.
APP 3-Collection of solicited personal information. Solicited information is information that is
asked for. In general, a service provider can collect only the information necessary to deliver the
service. Providers also need to ensure that consumers are informed about why their information
is being collected, who is collecting it, how it will be used, to whom it may be given and that
they can access it if they wish. They require consent from the client to collect, record, and store
the information.
An organisation must not collect sensitive information about an individual unless:
 the individual has consented
 the collection is required by law
 the information is necessary to provide a service to the individual
 the collection is necessary for research relevant to public health and safety
 the collection is necessary for the compilation or analysis of statistics relevant to public
health and safety
 the collection is necessary to the management, funding or monitoring of a service
 If an organisation collects information about an individual for the last three reasons, it
must take reasonable steps to permanently de-identify the information before it is
disclosed.
 Information should be collected in accordance with obligations of professional
confidentiality.

APP 4-Dealing with unsolicited personal information. Unsolicited information is information

that a business does not ask for but might get from clients by default. This principle outlines how
APP entities must deal with unsolicited personal information .
APP 5-Notification of the collection of personal information. This principle outlines when and in
what circumstances an APP entity that collects personal information must notify an individual of
certain matters.
APP 6-Use or disclosure of personal information. This principle sets out how providers can use
and disclose information. Use refers to the handling of information within an organisation.
Disclosure is the transfer of information to a third party outside the organisation.
A service provider can use or disclose information for:
 the main reason it was collected (the primary purpose
 for directly-related secondary purpose
The consumer must reasonably expect this, give consent to the proposed use or disclosure.
Exceptions to this relate to other provisions of privacy legislation that affect safety and security.
There must be, however, alignment between the expectations of the service provider and those of
the consumer about what will be done with the information.
APP 7-Direct marketing. Organisations may only use or disclose personal information for direct
marketing purposes if certain conditions are met.
APP 8-Cross border disclosure of personal information. This principle outlines the steps an APP
entity must take to protect personal information before it is disclosed overseas. Some information
can be transferred out of Australia (ie to overseas practitioners) if laws (or a scheme) with similar
privacy protection to these principles bind the recipient. Otherwise, information should only be
transferred with the consumer's consent.
APP 9-Adoption, use or disclosure of government related identifiers. There are restrictions on
how Commonwealth Government identifiers, such as the Medicare numbers or the Veterans'
Affairs numbers, can be adopted, used or disclosed. There are currently limited circumstances
where a service provider can adopt these identifiers for their own record keeping systems. These
identifiers can only be used or disclosed for the reasons they were issued or if other provisions
under this principle apply.
APP 10-Quality of personal information. Service providers are required to take reasonable steps
to keep information up-to-date, accurate and complete and to maintain data quality and integrity.
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APP 11-Security of personal information. Service providers must take reasonable steps to protect
and secure information (both hard copy and electronic data) from loss, misuse and unauthorised
access. Information that is no longer needed can be destroyed in line with the legislation for the
keeping and archiving of information.
APP 12-Access to personal information. Consumers have a general right of access to their own
information records. Access can only be denied in certain circumstances-for instance, where
access can pose a serious risk to a person's life or health.
APP 13-Correction of personal information. Consumers can ask for information to be corrected,
if it is inaccurate, incomplete or out-of-date. The provider will need to take reasonable steps to
correct the information.
Complaints about alleged breaches of privacy can be made to the Federal Privacy Commissioner.
The Commissioner can investigate, conciliate and, if necessary, make determinations about
complaints. However, the Commissioner will not investigate unless the complainant has first
complained formally to the service provider concerned. For more assistance on how the privacy
legislation applies to service providers, see the Federal Privacy Commissioner's Guidelines on
Privacy.
It is helpful to be aware of the relevant legislation that specifies the limits on information that
can be provided by financial literacy educators.
It will ensure you do not unknowingly break any laws such as providing inappropriate financial
advice or breaching your clients' confidentiality.
1.2 Refer appropriately to specialist services according to clients priorities
A financial literacy educator provides targeted information and resources to meet specific client
needs.
Possessing financial literacy education competencies alone, however, does not provide you with
the capability to undertake complex financial literacy education or financial counselling.
It can be helpful to be open with clients about your own limits of expertise as a financial literacy
educator. Advise them that you might have to refer them more appropriately to a specialist
service if the need becomes apparent.

A referral situation is most likely to occur if the level of financial education and support needed
by the client is complex and unable to be provided by your organisation. You might need to look
at other options and refer them to a specialised service provider that better meets the client's
current needs.
If you determine that your client is in need of more than just financial literacy education and
requires specific financial advice to avoid debt collection or bankruptcy, act immediately.
Specialised services could include advice from a qualified financial counsellor.
A financial counsellor is trained to assess a client's overall financial situation and inform the
client of the options that can help them overcome their particular problem.
A financial counsellor might also provide paralegal information and negotiate with creditors on
their clients' inability to pay bills, loans, credit cards, mortgages, rent, fines, tax bills and child
support.
When it is established that a referral is necessary, you will need to find out as much accurate
information as possible about the services that exist in the community.
These services might include:
• Centrelink emergency relief
• legal aid
• migrant resources
• housing support
• youth support
You can refer a client by contacting the services directly and requesting their referral protocols,
eligibility criteria, waiting lists and any other relevant information. Keep a file and hold as a
ready reference for both yourself and your colleagues.
You might decide to invite relevant service providers to team meetings or invite them to make a
presentation to colleagues detailing the services they provide and the relevant referral
information. You could also access relevant information online or request printed support
materials from appropriate service providers.

To refer appropriately to specialist services, you need to understand the skills and expertise of
other service providers, including members of your own team. It might also be helpful to be
aware of the specific requirements of other agencies to ensure you do not risk referring your
client to a specialist service where their needs cannot be met or addressed.
You will need your client's permission before a referral can be made. You might believe that your
client needs more specialised help but if they do not want to be referred, you must honour their
decision.
When you have your client's consent, you will need to consider:
 the existing service providers involved in your client's life
 the existing service provider's ability to satisfactorily meet the needs of the client
 that the social, religious or cultural needs of the client are being taken into account when
making the referral
 your client's opinion and freedom to choose other options or service providers they might
be willing to utilise
 the correct protocols for referral
 the policies and procedures in your own organisation with regard to the referral process
Ensure you are aware of the APPs and your own organisation's policies with regard to the release
of client information.
You do not need to provide all of your client's personal information-only as much as is required
to assist the provider to deliver the best possible service to the client. For example, a client's
family background is not necessary to reveal unless it has a direct bearing on the client's financial
situation.
The client's consent is always required before you discuss their needs with alternative service
providers.
If you are in any doubt about any of the procedures, consult with your manager or supervisor.

Some of the other factors you might also consider when referring clients to other specialist
services are:
• clearly communicate to the client why you are making the referral
• provide the client with information about the service to which they are being referred
(eg there could be a waiting list)
• provide the client with details of the location of the new organisation and the name of
a contact person
• offer alternative referral options (if the client requests this)
• encourage the client to provide feedback, particularly if the referral is unsuccessful
When a referral has been made advise the client and describe to them what they might expect
and how they can be assisted-this should be done both verbally and in writing.
Keep regular contact with the referred service provider so you are aware of the outcome.
To provide the best possible service to your clients, you need to demonstrate your ability to work
collaboratively and in consultation with key people and specialist services.
Each state has an association of Financial Counsellors, in NSW this body is The Financial
Counsellors Association of NSW.
https://fcan.org.au/


• Identify own values and attitudes in relation to money management
• Develop awareness of the influence of own attitudes to money management
• Discuss with supervisor methods of developing professional boundaries of own
values and attitudes
2.0 Identify own values regarding money management.
Your values are your beliefs about what is right or acceptable. Your attitudes reflect your values
and are demonstrated through your thoughts and behaviours. Even if you are not consciously
aware of it, your values and attitudes will influence the way you think about and manage your
money.
Money management is the process of budgeting, saving, investing, spending or overseeing the
cash usage of an individual or group. While the term is usually used in reference to professional
money managers, everyone practices some form of management with their own personal
finances.

When working with clients who need financial literacy education, it is important to be aware of
and understand your own values and attitudes towards money management because they have
the potential to influence both your own and your client's life for better or worse.
Many people possess attitudes and beliefs that hinder them in the effective management of their
money. Some of these attitudes and beliefs are:
• money is just a means to buy things
• thinking about and dealing with money issues is stressful and sometimes
overwhelming
• money does not buy happiness
• live for today
• I don’t make enough money to even worry about trying to get ahead
You might share some or all of these. Attitudes can stem from your upbringing; your family can
have an influence on your values towards money management.
You and your clients live in a global, consumer culture. Whether you like it or not, money plays
a huge role in every person's life and most people, at one time or another, experience strong
emotions about money.
Many people also feel powerless when it comes to managing their money. They continue to
make the same financial mistakes because they do not understand what motivates their personal
relationship with money.

2.1 The Hierarchy of Needs
Abraham Maslow's Hierarchy of Needs is a tool that can be used to identify the factors that
influence a person's values and attitudes towards money.
Maslow's 1943 paper {A Theory of Human Motivation) was originally written to describe the
psychological motivations of human beings in general but it can easily be applied to attitudes
towards money and finance. He constructed an imaginary five-level pyramid of human needs.
According to his theory, each level must be satisfied before the next can be achieved.
Maslow's Hierarchy of Needs:

The bottom level describes the most basic physiological needs-air, food, water and sleep. These
are required in order for human beings to keep alive. Once these survival needs are met, Maslow
believed that humans are motivated to consider the next level which includes the need for safety,
security and protection.
When these needs are met, the need for love and belonging is paramount to prevent loneliness
and isolation. If the desire for love and belonging is satisfied, Maslow believed people seek
status, fame, dignity and even dominance to satisfy their need for self-esteem and self-respect.
The top and final level of self-actualisation can be compared to a state of complete, personal
fulfilment.

Maslow's theory can be equally applied to a person's attitudes and values towards money.
According to Maslow's theory, it is only possible for a person to achieve their full potential if the
four levels below are satisfied.
Financially speaking, Maslow's theory helps us to understand that values and attitudes towards
money and money management stem from the desire to firstly, satisfy basic needs and then to
satisfy the other psychological needs that are most important.
People firstly need enough money to cover their basic needs; food to feed their family and a roof
over their heads. When this physiological need is fulfilled, they will most likely seek to protect
their home and family. They might try to maintain steady employment and take out health, life
and property insurance. This fulfils the need for safety and security.
The need for love and belonging can be satisfied by investing money in things that strengthen
family and friendship bonds such as gifts and holidays. It could also mean making a will to
ensure that loved ones will be provided for in the future. When this need has been achieved, self-
esteem, confidence and respect might be sought.
People generally satisfy this level when they spend their money on items or experiences that
increase their feelings of self-worth. It might mean buying a new house in an affluent part of
town or driving the latest model sports car. It could also involve sending children to an expensive
private school or taking part in expensive hobbies.
Many people choose not to move to Maslow's top level of self-actualisation as they might
believe their most important needs have been satisfied at the four lower levels.
Maslow's theory can help you and your clients understand personal priorities when planning both
short and longer term financial goals.
Understanding where you and your clients fit in the Hierarchy of Needs can also help you to
understand the strong emotions that might be experienced about money. The desire to satisfy the
needs described by Maslow can become overwhelming for some people. It might result in bad
financial decisions that impact negatively on themselves and their families for a long period of
time. They might buy things that they cannot afford and go into serious debt.
Whatever way it is perceived, money plays a vital role in everyone's life and exerts a major
influence on people's behaviour.
The more that is known about people's values and attitudes towards money, the greater the ability
to focus on where the most effort is needed to effect positive change in people's money
management behaviours.
When you are able to understand and identify what money means to you as an individual and the
manner in which you manage your money, you will be in a better position to take control of your
own financial future and assist others to do the same.

2.2 Develop awareness of the influence of own attitudes to money
 management and discuss with supervisor methods of

 developing professional boundaries of own values and attitudes
A person's budgeting and money management behaviours are determined by a number of factors
which can include their upbringing, their experiences in life and their psychological needs.
Behaviours such as your own individual saving and spending practices are affected by these
factors. You might have learned that a budget is a good way to recognise your spending habits.
A budget is a list of your income and expenses-a plan for saving and spending during a given
period of time. A simple budget can highlight your personal income and expenses; it allows you
to identify what areas of money management might need attention. A budget can put checks and
balances in place to prevent overspending at certain times. It might also assist in planning for
unexpected emergencies or for the future.
Many people have not learned how to budget. If you have trouble saving your money, it is likely
that this behaviour was learned and shaped by your life's experiences. You might have been
brought up with the idea that money is made to be spent even if you do not have a lot of it. After
a while, you become familiar with a certain pattern of behaviour and it becomes a regular part of
your routine.
Spending more than you earn will have a negative result on your finances over time. Becoming
aware of why you spend and acknowledging the negative results of past spending actions is good
motivation to change current habits and learn how to plan a workable budget.
It is the influence of significant others (such as members of your family) that can have the
greatest impact on your financial behaviour-you learned from an early age about dealing with
money by watching the behaviours of your parents.

Factors that could be of assistance when trying to identify the primary influences of others on
your financial upbringing can include:
• how money was managed in your family when you were growing up how money
matters were discussed in your family
• what your family's attitude towards debt was
• what you learned from your family about saving or spending money and how to
create a budget plan
• what messages about money you remember hearing when you were growing up
• your cultural background
Your attitude towards money today can almost certainly be traced back to past experiences
whether it was something your parents said or a specific incident that strongly affected your
feelings about money.
Your parents might always have been short of money so you learned to save for a rainy day. If
you were taught that it was not polite to talk about money, you might avoid any discussions
about finances or you might talk about money all the time. If you observed a parent with
complete control over the money, you might seek a partner with similar behaviour.
Other influences on budgeting and money management behaviours could be
• your friends
• your peers
• your neighbours
• the media
• your partner
• your education
These influences are often subtle; we are not consciously aware of the powerful impact that these
factors have on the way we manage our money.
Possessing self-knowledge around personal money management and behaviours and an
awareness of the factors that influence them might help you to recognise similar issues in your
clients' backgrounds. It will also help you to target your financial literacy program more
effectively to clients' individual needs and encourage positive change in their lives.

Boundaries
The relationship between you and your clients is essentially one of trust and this can lead to
situations where the client can develop some level of emotional dependence.
Appropriate relationships with clients are those which recognise that as an educator you have
enormous power and influence in the lives of clients. Some clients with financial problems are
especially vulnerable and relationships should be those which empower them as much as
possible.
In all relationships limits need to be set. Boundaries define who we are as individuals and our
relationships as professionals and therefore need to be workable. The strength of our boundary
depends on our relationships with clients and on the context of that relationship. One of the key
issues for working with clients is to be able to recognise when the invisible line which separates
a client from a worker is in danger of being crossed. It is also important to avoid influencing a
client with own values and attitudes towards money as this can lead to more emotional
dependence and the client might feel they cannot deal with money matters at all without your
help.
There might be signs that indicate that boundaries are shifting and you feel your relationship is
drifting into something less than professional. For example, if you find yourself setting aside a
lot of time for one particular client, staying back after hours with a client on a regular basis,
meeting a client socially on a regular basis or finding yourself giving personal or irrelevant
details about your own life it is time to re-evaluate your relationship with that client.
If you recognise that your relationship with a client is becoming too intimate or that you have too
much power and control over that person, you can review your relationship with them, re-
establish boundaries by clarifying your role, alter workplace arrangements so that the client is
moved to a new worker or arrange to share the case with another worker and as always refer to a
financial counsellor when further advice is required.
Issues of boundaries and limits should always be discussed during a session with your supervisor
so that methods and strategies can be put in place.


 Assist clients to identify influence of own values and attitudes towards money
management
 Assist clients to identify their own money management styles
 Assist clients to identify any barriers to effective personal money management
 Identify the role of money for different client groups
 Work with client in a method that respects their values
 Ensure own values do not affect the working relationship
3.0 Identify the values and attitudes of diverse client groups impacting
on financial management
Identifying the influence of your own personal values and attitudes towards money management
enables you to better understand and control your financial situation
Enabling your clients to identify their own values and attitudes towards money management
might help them understand their current relationship with money and assist them make better
decisions with regard to money management.
People possess a broad range of values and attitudes towards money.
Some of these values and attitudes are:
• money is a symbol of status and success
• there is never enough money to go around
• money is the most important thing in the world
• I worry I won't have enough money for when I retire live now, pay later
• my parents always taught me to save for a rainy day
• money is a community thing
• money is an issue of faith/belief
• easy come, easy go
Your clients might possess one or more of these attitudes. Money issues play a huge role in every
person's life and it is very likely that your clients will, like yourself, experience strong emotions
about money at certain times in their lives.
Some of your clients might feel powerless when it comes to managing their money. For others,
their own personal circumstances will influence their attitudes or could prevent them from giving

money issues adequate attention. You need to ensure that you do not judge these values even if
you do not share their beliefs.
Some of your clients will make the same financial mistakes over and over again because they fail
to understand the influences of their values and attitudes towards money. You will need to
demonstrate patience and understanding towards your clients if this is the case.
One of the ways you might assist a client to identify the influence of their own values and
attitudes towards money management is to ask them to construct a personal money biography
which requires them to pinpoint influences such as their upbringing and their cultural and
religious beliefs with regard to money.
This activity could be presented in written form. If your clients speak a language other than
English or if reading and writing difficulties are present, it could be done verbally. Another
effective method might be to ask your clients to portray their attitudes and values through a
visual presentation.
Another way you might help clients to better understand their relationship with money is to show
them how to apply Maslow's theory on the Hierarchy of Needs to their personal financial
situation.
You can use Maslow's theory to help your clients understand their values and attitudes towards
money management by identifying where they think they sit in Maslow's hierarchy.
Maslow's hierarchy has five levels:
1. Physiological.
2. Safety.
3. Love and belonging.
4. Self-esteem.
5. Self-fulfilment.
A client's financial priority could be to buy a new car (Level 3) but, if they are having difficulties
keeping up with rent payments, it means that they are still functioning at Level 1.
To achieve financial security, your client needs to understand that their needs at Level 1 must be
fulfilled before they are able to move to a higher level.
You might also assist your clients to understand their financial priorities by asking them to
identify their short-term and long-term financial goals.
You need to be aware of possible cultural and personal sensitivities with regard to the open
discussion of money issues. For some clients, it is not appropriate to discuss money issues with
strangers. These activities can be done privately.

A community worker's role is to build trust through patience and understanding. After a time,
your clients might become more comfortable in discussing their feelings towards money and
money issues more openly.
When you are able to assist clients to understand and identify the factors that influence their
attitudes to money management, they will be in a better position to assist themselves and their
families and take control of their financial future.

3.1 Assist clients to identify their own money management styles
Helping your clients to become better money managers is made easier when they understand
their spending personality.
Spending is the use of income to buy goods and services in a present time and place. Saving is
the use of income to buy goods and services in the future.
When your clients receive an income, they are faced with many decisions to make. They can
either spend all of it, save all of it, or spend some and save some. If they choose to spend all or
some of their money, they have to decide what they want most.
It can be helpful for clients to identify what type of spender or saver they are. Many might never
have sat down and given any thought to their spending habits and yet often wondered where their
money went and why they did not have enough when emergencies arose.
Your client could be someone who spends every cent as soon as they receive money because they
want the good things straight away and do not want to wait. Another client might be a diligent
saver and another could be a combination of the two.
A financial literacy educator helps clients identify their saving and spending styles and guides
them through this process.
One activity might be to ask your clients what they would do if they received $1,000 as a gift.
You might discuss what a person would do with the money if they classified themself as a
spender or what they might do if they saw themselves as a saver.
When a client is able to identify their saving and/or spending habits they will better understand
their money personality. Some clients might have to change their habits in order to achieve better
financial outcomes.
If a client loves to spend money, it can be hard to stop that behaviour completely, especially if
they see no advantages to saving their money. You might spend some time discussing the
benefits of saving money for emergencies. Sometimes, just helping your clients to make small
changes can lead to improved financial management habits.
Helping a client to identify their short-term and long-term financial goals can assist them to see
the bigger picture with regard to their finances. This might be achieved by helping your client to
construct a simple timeline that identifies their immediate financial needs (spending) and what
they might like to purchase in the future (saving).
For example, you could ask the client to write down their financial goals for a period of five
years-ask them to indicate how they would achieve this. You could reassure them that it is
possible to reach their goals with a saving plan.
Through such exercises, your clients are more likely to be able to identify if they are savers and
spenders and better understand their money management style.

It might also help your client to try to identify some of the outside influences on their saving and
spending habits such as:
• personal circumstances
• family upbringing
• cultural attitudes
• religious and personal beliefs
• dependencies and addictions
Some of your clients might prefer to perform these activities in a private, one-on-one situation or
they might be prepared to demonstrate their attitudes and beliefs towards saving and spending
through visual or other means.
You need to be mindful of the many different attitudes towards money and the discussion of
financial issues and plan your financial literacy program and activities accordingly.
Understanding a client’s cultural background is imperative to understanding their attitudes
towards money. Most indigenous cultures do not value money in the same way that Western
countries do. They are more community focused, rather than individual focused. In addition if
your client is a new immigrant to Australia, they may have little to no understanding of how the
financial systems in Australia operate, and what their rights and obligations are. It is important
to factor differing backgrounds into any program developed for your clients.
3.2 Assist clients to identify any barriers to effective personal money management
Effective personal money management means developing a workable plan or budget with both
short-term and long-term financial goals.
1
Developing an Exploratory Framework Linking Australian Aboriginal Peoples’ Connection to Country and Concepts of Wellbeing by Jonathan
Kingsley Mardie Townsend Claire Henderson-Wilson and Bruce Bolam

Many of your clients will never have worked with a budget and could be in extremely stressful
financial situations. One of the reasons for this will be the barriers that exist that might have
prevented them from learning effective money management techniques.
Barriers to effective personal money management can be classified as internal or external.
Internal barriers might include:
• unhealthy attitudes towards money management such as living for the moment
• feelings of powerlessness or helplessness unwillingness to take responsibility for
finances dysfunctional credit and savings behaviour
• low level of financial skills and knowledge
• learned behaviours from background and upbringing
Most internal barriers to effective money management stem from a low level of financial skills
and knowledge. If a client is unable or unwilling to make out a household budget, they might
also engage in risky spending behaviour.
Financial literacy education can assist clients to take responsibility for their finances through
advice on budgeting and credit-this will reduce feelings of powerlessness and helplessness and
help to remove one of the internal barriers they might possess.
You also need to reassure your clients that, despite these internal barriers, it is possible to
overcome them by constructing a saving and spending plan with long- and short-term goals.
Assisting clients to recognise internal barriers to effective money management is the first step for
them to deal with and change financial behaviours that have a negative impact on their life.
Sometimes, you will be unable to assist a client so you need to be able to recognise this and refer
that client to a more specialised service if required.
External barriers to effective personal money management are often outside of a person's control.
They might include:
• job loss; unemployment
• mental health issues
• relationship breakdown
• low levels of literacy and numeracy
• lack of ownership of financial products
• domestic violence issues intergenerational poverty
• cultural issues and language background alcohol and other drugs issues
If language is a barrier to a client understanding effective personal money management, teaching

skills like budgeting can be done visually using tools such as play money rather than the written
language to relay the information. This might also apply to clients with low levels of literacy and
numeracy.

Educational materials that use pictures and diagrams are ideal to use with your clients.
Demonstrating concepts such as credit and debt could be done with a comic strip or a role play.
You might ask your clients to keep a personal spending diary to help them keep track of their
spending and their reasons for doing so.
A spending diary is an essential tool for clients to understand exactly where their money is going.
Those $4 coffees, and $10 lunches soon add up, and it can highlight exactly where budget leaks
are occurring.
The client then has valid choices to make:
1. Change nothing, and continue on
2. Eliminate the behaviour entirely to achieve goals
3. Compromise, to allow enjoyment and the achievement of goals.
The choice is ultimately up to the client, who will be able to make an informed decision, aware
of potential outcomes, thanks to your education.
Identifying the reasons for their spending might assist your clients to better identify and
understand some of the barriers that stop them from saving and effectively managing their
money.
These activities can be used to help your clients recognise internal or external barriers to
effective personal money management. They will also help clients to take steps to deal with these
barriers and give them a sense of ownership of their finances so they feel less helpless and better
able to manage their financial affairs.
You need to be aware that dealing with external barriers such as mental health issues, domestic
violence, alcohol and drugs are likely to be outside of your area of knowledge and expertise. You
could advise a client with complex financial issues to see a specialist service such as a financial
counsellor. It is equally important that you know to refer clients with other urgent needs to more
specialised services when necessary.
Helping your client to identify any barriers to effective money management is a step towards
them taking control of both their lives and their finances.


3.3 Identify the role of money for different client groups
When providing financial literacy education you need to recognise that your clients will possess
diverse attitudes and beliefs with regard to money. Their personal understanding of the role of
money might be very different to your own.
In the modern Western economy, money plays an important role. According to economists, it can
be seen to have three roles or functions: as a medium of exchange, as a unit of account or as a
store of value.
Money as a medium of exchange
Before coins and paper, the only medium of exchange was through barter or trade. Goods could
be exchanged (bought) for other goods. These transactions had obvious disadvantages. The needs
of both parties involved in the exchange needed to be matched. For example, if one party had
camels and the other spices, the transaction would only be successful if one party wanted camels
and the other wanted spices.
Money can therefore be used as an intermediate step in the exchange process. Both camels and
spices can be exchanged for money.
Money provides a specialised form of payment that is both suitable and accepted by world
markets.
Money as a unit of account
Money is also used as a unit of account because it is possible to divide a certain amount of
money into smaller amounts while the total value does not change. For example, ten $10 notes
are worth exactly the same as one $100 note-that same $10 note has the exact same value as any
other $10 note and can be used to buy goods and services for the same recognised value.
Money as a store of value
Money is a store of value-an amount of money you have today should still have the same value
in a year. Realistically, this is often not the case. For example, a $50 note today could not buy the
same as a $50 note twenty years ago. The process of money losing its value over time is called
inflation.
Using money to pay for things works because the global economy recognises and agrees upon
the value of money. By having a consistent, recognised value, the market will always agree that
one dollar is worth 100 cents regardless of how many goods and services that dollar might buy at
any given time.
Most people understand money as a means to buy the things they want and need, pay back
money they might have borrowed or pay for a service. They understand that getting money is not
easy. It can be earned, it can be won and it can be found but most people have to work to get
money to pay for the things they want.

Your clients might come from a different cultural background which will affect their
understanding of the role of money. For example, people from a Chinese cultural background
believe that the role of money is a way of showing your standing and prestige in society. They
believe that money should be saved, accumulated and used to pay for things in cash.
People from a Sudanese background are often part of large, extended families. Their lives
revolve around the family and money is a means of looking after the family and keeping it
together.
Different age groups often perceive the role of money in different ways. Younger clients might
see the main role of money as a means to buy what they want. Older clients might see the role of
money as a means to look after their families or pay their bills or to keep for their retirement.
Different socioeconomic groups will understand the role of money in relation to their own
circumstances. For those clients from disadvantaged backgrounds, the role of money might be
just to buy basic necessities to survive. For someone from another, more affluent background,
money could be seen as the means to do much more-such as taking holidays or buying expensive
cars.
Beliefs about the role of money will determine your clients1 saving and spending habits and the
management of their financial affairs. In order for you to educate your clients effectively, you
will need to recognise their beliefs and attitudes about the role of money.
One activity that might assist you is to ask your clients to outline, either verbally or in writing,
the role and importance of money in their lives. Teaching your clients about the role of money in
Western society could follow so that the entire group has a good understanding of how the
economy functions and their place and function within it.
The role of money will always be affected by the value that people put upon it. This is the key to
understanding how your clients see the role of money in their lives.

3.4 Work with client in a method that respects their values and ensure own values do not
affect the working relationship
Our values are principles or beliefs that serve as guidelines to help us make decisions about
actions, behaviours and life choices. They reflect what we value and how we feel about the
rightness or wrongness of things.
As a general rule, when we act in accordance with our own values, we tend to feel good about
ourselves and our actions. When we act in a way that violates our values, we tend to feel badly
about it. Our values are influenced by many factors, including our experiences, perceptions,
parents, friends, school and religion.
Values can change over time. As we have new experiences and receive new information, we
might re-evaluate our values and modify them. What we think is right or wrong in any given
situation might change when we find ourselves actually in that kind of situation. It is for this
reason we should respect a client's values and ensure our own values do not affect the working
relationships with clients.
Respecting a client's values means not being judgemental and accepting the client for who they
are and where they currently are in their life.
Personal biases and value systems can negatively impact on the client relationship. It is
important to demonstrate awareness of your own personal values and attitudes and take into
account the fact that your values and beliefs will not always exactly match those of your clients.
This does not imply rightness or wrongness, just difference. Keep in mind also, that it is
necessary to understand and comply with the legislation that has been put in place to support
fairness, equity, social justice and non-discriminatory practice.
The way we all look at situations is coloured by the experiences we have had. It is through these
experiences that we develop attitudes, beliefs and understandings that influence our perceptions
(the cultural lens). We make decisions about others by using our family culture, values, and
beliefs to help us evaluate a situation.
When providing services and interacting with clients, it is necessary that you do not make
assumptions and that you make allowance for the fact that two diametrically opposed perceptions
can exist together. Almost everyone is ethnocentric to some degree. Ethnocentrism is the
tendency to believe that one's own race or ethnic group is the most important and that some or all
aspects of its culture are superior to those of other groups. As a consequence individuals will
judge others in relation to their own particular ethnic group or culture, especially with regard to
language, behaviour, customs, and religion.

Personal or professional issues can also impact on working with a client, so it is important for
you to be aware of what is going on in your life, and how it is impacting you. Stress is a common
response to personal or professional issues that are causing you concern or anxiety. If you are
suffering from stress you are likely to be less patient or present and your professional
relationship with your client might suffer. It is important to be aware of how you are feeling and
to seek support from your supervisor or other appropriate professional.
3.5 Target financial literacy education to client needs

• Identify specific needs of clients or target group in relation to financial literacy
education
• Identify specific money management issues relating to different target groups
There is no one-size-fits-all program for clients needing financial literacy education. Clients and
target groups will have specific needs that need to be identified and addressed.
There are a number of ways you could identify these needs.
You might ask your clients to complete a questionnaire or survey when they first contact the
community association where you work. As well as asking about a client's background
information, the questions could also be designed to find out a particular client's level of
financial literacy.
Another way might be through verbal questioning during your first meeting with the client. You
might need to ask the client directly about their money management skills or the client's needs
could become apparent during the initial interview without the need for direct questioning.
In some cases where a community association deals with a large number of a particular client
group, these needs might be known already. It is up to you to familiarise yourself with the
common profile of these clients and use existing resources and knowledge to assist you in
identifying these needs.
Australia is a highly diverse society. Within the larger society there are communities and within
each community there will be groups of like-minded people who hold similar cultural
characteristics or values. These values and characteristics might relate to nationality, religion,
interests or lifestyle choices.
Within these larger groups are many smaller groups-family units, friends, peer associations and
work groups. These groups will also hold common values and customs, all of which are
important to the people living within the groups.

Wherever you live and work in Australia today, you will be in constant contact with people from
a wide range of social and cultural backgrounds; people who live their lives differently from the
way you do.
In order to identify the specific needs of your clients, you also need to be aware of the various
groups and subgroups within the community in which you work.
A client's background will greatly influence their needs and their preferences with regard to their
understanding and management of money. While their attitudes and beliefs might be very
different from your own, as a community service worker working with clients needing financial
education, you must respect and accommodate differences and diversity amongst your clients.
Some specific needs of your clients might include, how to:
• avoid going into debt when buying household items
• save money
• stay informed about money matters and finances
• construct a simple, household budget
• pay off a loan
• understand financial statements from banks or other financial service providers
• avoid scams an “bad debts” such as pay day loans
Identifying your clients' needs in relation to financial literacy education also involves identifying
the main groups in the community and identifying the specific needs associated with those
groups.
For Indigenous clients, a different range of issues might need to be considered. Rather than just
concentrating on the individual you will need to find out what the financial literacy needs are of
the local community in which the client lives, as the wider community has great influence over
the individuals living within it.
It will also be helpful to find out that particular community's financial goals as well as their level
of education and sources of income.
You might also need to consider how the issue of money management fits with other community
priorities and what resources the community has access to like the internet, ATMs and mobile
telephones.
For clients from other different cultural groups, you will need to take into account local money
management practices and how the community approaches them as well as any issues around
gender or leadership within that community that might be present.
As you are working with diverse groups of people in the community, you need to ensure that
your client's needs are met according to client wishes and those of their particular community-not
according to your own perceptions and values.

3.6 Identify specific money management issues relating to different target groups
Different client or target groups might sometimes possess specific money management issues.
One of your roles as a financial literacy educator is to identify these issues for the different
groups.
You might be able to find out about these issues through interaction with your clients. A client
might ask you for a food voucher to feed their family because they spent their money on a new
big screen television. You might find out more about your client's background and their needs
become more apparent.
The community association where you work might also be able to provide advice when
attempting to identify the money management issues of a particular group especially if they have
had a great deal of experience in assisting clients from different target groups.
It is important that you take into account these issues when preparing a financial literacy
education program.
Some of your client target groups might include:
• Indigenous people
• other ethnic groups
• new arrivals
• people with an intellectual or physical disability
• people on low incomes or receiving social security
• sole parents not working
• young, at-risk individuals
• ex-inmates from gaol re-entering society
Money management issues within these groups might be a result of the nature of the community
in which they live or where they have come from. Money issues might not be openly discussed
or even relevant in some communities. Sometimes, only a select few in a family or community
might deal with money issues and the rest could have little or no say in financial matters.
Another reason might be the group's ability to understand money management issues. If they are
recent migrants from a country that has been experiencing civil war, they might possess little
knowledge of the way a Western money economy functions.
Another money management issue might be lack of access to technology and financial products.
This is especially relevant to Indigenous people from remote communities, people on very low
incomes or those experiencing social isolation. Individuals within these particular groups are
often financially excluded from mainstream economic life.

Other target groups might experience unemployment or participate in casual, part-time or low-
paid work. They might have difficulty accessing financial products and possess a low level of
financial literacy and poor financial habits.
Other money management issues for these individuals or groups might include
• lack of knowledge on how to budget
• an inability to save
• poor cash and debt management
• lack of emergency funding
• income that does not meet needs or the increased cost of living inappropriate use of
credit
Low financial literacy increases people's vulnerability to financial pressure and can place them at
great disadvantage. For example, lack of money to provide essentials including food and health
care, not understanding credit terms or lack of access to banking services might increase the use
of short-term, high interest credit sources.
For new arrivals, it is often the case that they are faced with learning about an entirely different
money culture as well as their own personal money management issues. For those people who
come from a cash-based or barter-based financial system, issues like credit, rental and paying
bills might be completely bewildering. Simply working to de-mystify some financial processes
can be of great assistance to new arrivals.
This might be addressed by organising field trips to different banks and financial institutions or
inviting a finance expert to come and address your group. Issues such as basic banking and credit
could be explained and demonstrated.
You would need to ensure that you are not seen to be recommending a specific financial product
to your clients as it could be interpreted as you offering financial advice which is not allowed
under legislation.
People with an intellectual disability might experience difficulties with handling money and
problem-solving if unexpected events occur. They might have problems reading or writing or
understanding bank statements or financial correspondence. You need to be aware of the
sensitivities that could be experienced and ensure that you communicate clearly and that your
practical activities are simple and relevant.
People with an intellectual or physical disability might find it difficult to gain employment which
means that they are on a low income; because of this, they will require assistance to manage and
budget their money.
Young, at-risk people come from a range of backgrounds that can include homelessness and
physical and sexual abuse. Often, lack of money management skills are tied to lack of life skills.
One way of taking these factors into account might be to link money management skills with
other life skills such as good nutrition, health and education.

You need to identify the specific money management issues relating to your clients. You should
demonstrate empathy by providing a financial literacy program that is sensitive to clients'
cultures and backgrounds, to differences in beliefs and attitudes and, most importantly, addresses
your target group's specific money management issues.

4.0 References
ANZ Survey of Financial literacy in Australia, accessed April 2024, http://www.anz.com.au

Australian Privacy Principles, accessed April 2024, http://www.privacy.gov.au
Australian Securities and Investments Commission, Australia, 2015, accessed April 2024,
http://www.asic.gov.au
Australians Understanding Money, Commonwealth of Australia, accessed July 2024,
http://www.understandingmoney.gov.au
Developing an Exploratory Framework Linking Australian Aboriginal Peoples’ Connection to

Country and Concepts of Wellbeing by Jonathan Kingsley, Mardie Townsend Claire Henderson-
Wilson and Bruce Bolam
The Routledge Handbook on Financial Social Work Direct Practice with Vulnerable Populations
Edited ByChristine Callahan, Jodi Jacobson Frey, Rachel Imboden

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CHCEDU005 Work with clients to identify financial literacy education needs.

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Learning support material

This section addresses the following performance criteria:

1.0 Identify roles and boundaries relevant to role of financial literacy

The Australian Securities and Investments Commission (ASIC) is an independent

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Clients could include:

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You Can: You cannot:

 advise a client how to save money  advise a client what particular

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1.1 Australian Privacy Principles (APPs)

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APP 4-Dealing with unsolicited personal information. Unsolicited information is information

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1.2 Refer appropriately to specialist services according to clients priorities

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Learning support material

This section addresses the following performance criteria:

2.0 Identify own values regarding money management.

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2.1 The Hierarchy of Needs

Maslow's Hierarchy of Needs:

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2.2 Develop awareness of the influence of own attitudes to money

 management and discuss with supervisor methods of

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Learning support material

This section addresses the following performance criteria:

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3.1 Assist clients to identify their own money management styles

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If language is a barrier to a client understanding effective personal money management, teaching

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3.3 Identify the role of money for different client groups

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3.5 Target financial literacy education to client needs

This section addresses the following performance criteria:

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