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Be Moneysmart Complete Educator Guide (for modules 1-5)

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Important information

Resource updates (as at August 2021) • The Be Moneysmart video resource was filmed and published in 2015. There are no plans for the videos

to be updated in future. o Within each module of this guide, we provide a list of what’s changed since 2015 – these provide an

excellent learning opportunity and basis for further discussion.

• The Educator Guide and Student Workbooks were last updated in August 2021. There are no plans for the print resources to be updated in future.

• This resource no longer supports the FNSFLT301A ‘Be Moneysmart’ unit of competency within the Certificate III in Financial Services Training Package even though the digital resource still states it does.

Disclaimer

Not legal or financial advice

The information and materials in this resource have been provided by ASIC to assist your financial literacy education. It is not and should not be regarded as legal or financial advice. You should seek your own professional advice where appropriate. Whilst every effort is made to ensure the accuracy of the information and materials in this resource, ASIC does not warrant the accuracy, completeness and currency of all the information provided.

Some material may include or summarise views, standards or recommendations of third parties. ASIC does not endorse such material and its inclusion does not indicate that ASIC recommends any course of action.

Third parties

ASIC provides the resources to third party organisations for their broader distribution. ASIC does not promote, endorse or otherwise conduct a business relationship or partnership with any of the third-party organisations that distribute our resources.

Copyright

This work is based on materials that constitute copyright of the Australian Securities and Investments Commission and is licensed under a Creative Commons Attribution Non-Commercial Share Alike 3.0 Australia Licence. For an explanation of what this licence allows you to do please refer to the Creative Commons website at creativecommons.org.au.

You must include this statement on any adaption of the resource:

This work is licensed under a Creative Commons Attribution Non-Commercial Share Alike 3.0 Australia Licence (see: https://creativecommons.org/licenses/by-nc-sa/3.0/au/). A Legal Notice applies to the use of these materials, see: Legal Notice: Moneysmart.gov.au/about-us/copyright

The material in this resource is made available for the purpose of providing access to general information about consumer and financial literacy education and is not professional advice. If you intend to rely on the material, you should obtain advice relevant to your particular circumstances to evaluate its accuracy, currency and completeness.

Some material may include or summarise views, standards or recommendations of third parties. ASIC does not endorse such material and its inclusion does not indicate that ASIC recommends any course of action.

ASIC requests that if you re-publish this work that you notify ASIC by email Moneysmartforteachers@asic.gov.au. We are interested in hearing how people are using and adapting the materials.

CAL exemption

This resource is exempt from collection by copyright agencies and is a free resource for educational institutions.

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Table of contents Important information ................................................................................................................................ 2

Disclaimer ....................................................................................................................................................... 2 Copyright ........................................................................................................................................................ 2

Setting the scene ......................................................................................................................................... 5 ASIC’s Moneysmart ........................................................................................................................................ 5

About the Be Moneysmart modules ............................................................................................................ 5

MODULE 1: Saving, budgeting and spending ............................................................................................... 6 Activity 1: What is your financial personality? ............................................................................................... 6 Activity 2: What are your strengths and weaknesses? ................................................................................... 6 Activity 3: What are your goals?..................................................................................................................... 6 Activity 4a: What is your budget? .................................................................................................................. 7 Activity 4b: Review your goals and budget .................................................................................................... 7 Activity 5: How will you save your money? .................................................................................................... 7 Activity 6: How will you invest your money? ................................................................................................. 8 Optional activity: Cryptocurrencies and ICOs ................................................................................................. 8 Module 1: Review questions and answers ..................................................................................................... 9

MODULE 2: Personal tax ............................................................................................................................ 10 Activity 1a: Storing your receipts ................................................................................................................. 10 Activity 1b: Understanding receipts ............................................................................................................. 10 Activity 2a: What is your assessable income? .............................................................................................. 11 Activity 2b: What are your allowable deductions? ...................................................................................... 11 Activity 3: Lodging your tax return ............................................................................................................... 12 Activity 4: Key terms and definitions ............................................................................................................ 12 Module 2: Review questions and answers ................................................................................................... 12

MODULE 3: Superannuation ...................................................................................................................... 14 Activity 1: Saving for your retirement .......................................................................................................... 14 Activity 2: Comparing funds ......................................................................................................................... 14 Activity 3: Checking your employer contributions ....................................................................................... 15 Activity 4: Super co-contributions ................................................................................................................ 15 Activity 5a: Find lost super ........................................................................................................................... 15 Activity 5b: Keep track of your super ........................................................................................................... 16 Activity 5c: Check your super statement ...................................................................................................... 16 Activity 5d: Consolidating your super ........................................................................................................... 16 Module 3: Review questions and answers ................................................................................................... 17

MODULE 4: Debt management .................................................................................................................. 20 Activity 1: Using Moneysmart calculators .................................................................................................... 20 Activity 2a: Comparing debt products .......................................................................................................... 20 Activity 2b: The impact of saving .................................................................................................................. 21 Activity 3a: Paying off credit cards ............................................................................................................... 21 Activity 3b: Comparing credit cards ............................................................................................................. 21

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Activity 4: Making the right choice ............................................................................................................... 21 Activity 5: Staying out of debt ...................................................................................................................... 21 Optional activity: Check your credit report .................................................................................................. 22 Module 4: Review questions and answers ................................................................................................... 22

MODULE 5: Insurance ................................................................................................................................ 23 Activity 1a: Compulsory third-party car insurance ....................................................................................... 23 Activity 1b: The right car insurance .............................................................................................................. 23 Activity 2a: Estimating home contents insurance ........................................................................................ 23 Activity 2b: Estimating home insurance ....................................................................................................... 23 Activity 2c: Researching home and contents insurance ............................................................................... 23 Activity 3: Choosing the right insurance cover ............................................................................................. 24 Module 5: Review questions and answers ................................................................................................... 24

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Setting the scene Knowing how to manage money is one of the most important and challenging parts of everyday life. It is a core skill for today and for the future.

Young people interact with money and make consumer choices from an early age. They are growing up in a fast-paced consumer society where:

• money is becoming invisible through increasingly easier access to internet banking and online shopping • consumer and financial products are becoming increasingly complex to understand • individuals carry more responsibility for the decisions they make in these contexts.

Teaching young people how to manage money (consumer and financial literacy) provides a real-world context for them to learn and prepare themselves to interact and contribute to society.

ASIC’s Moneysmart

Financial literacy is a core life skill. In a rapidly changing world of personal finances, children and young people will benefit from gaining and applying the knowledge, understanding, skills and behaviours to establish good consumer and financial habits.

Financial literacy is a combination of financial knowledge, skills, attitudes and behaviours necessary to make sound financial decisions based on personal circumstances, to improve financial wellbeing. Moneysmart aims to raise awareness of financial literacy and its benefits and creating opportunities for Australians of all ages and backgrounds to increase their understanding of financial issues and to make the most of their money.

The Moneysmart website is a source of free and impartial information about all aspects of personal finance, including credit, banking, insurance, investing and superannuation.

Who should use this resource?

The Be Moneysmart resource can be used to assist trainers, assessors, teachers, field workers and mentors to teach and assess key financial literacy concepts to young adults

Assessment

This guide contains a range of assessment methods that will be used to assess the student’s practical skills and knowledge. These include:

• evaluating an integrated activity that combines the elements of competency for this unit • verbal and written questioning on underpinning knowledge and skills • setting and reviewing simulations or scenarios.

About the Be Moneysmart modules Be Moneysmart has five modules to help people develop the skills, knowledge and behaviours required to effectively manage their own personal finances.

• Module 1 – Saving, budgeting and spending • Module 2 – Personal tax • Module 3 – Superannuation • Module 4 – Debt management • Module 5 – Insurance

Each module comprises an online video resource featuring the real-life stories of people who are working through the challenges of managing their finances and accompanying student workbooks for each module.

Access the Be Moneysmart online resource via the website

Be Moneysmart online video resource should be used in conjunction with this Educator Guide. Student workbooks can be downloaded from the first page of each of the 5 online modules.

Module 1: Saving, budgeting and spending

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MODULE 1: Saving, budgeting and spending WHAT’S CHANGED? (since 2015)

• There are now other mainstream financial services/products available. Some examples include: o By Now Pay Later (BNPL) o Tap and Go payments, smart phone/watch payments o Cryptocurrencies

• The video uses an old version of Moneysmart’s Budget Planner in the demonstration. It may look different, but the updated version still has similar functionality.

o You can no longer create an account to save calculators. Instead data is saved in the same browser and device only, so if you clear your browser’s cache, you will lose all data. An Excel version is available and can be saved locally.

• The video also references Moneysmart’s TrackMySpend app which is no longer available. • There is no longer a specific section on Moneysmart called ‘Investing’. To find all the relevant

content, type ‘investing’ into Moneysmart’s search to see a collection of results.

Activity 1: What is your financial personality?

Students watch videos then complete a financial personality quiz within the Student Workbook.

Activity 2: What are your strengths and weaknesses?

Students watch videos then identify their strengths and weaknesses within the Student Workbook.

Activity 3: What are your goals?

Students watch a video then set short, medium and long-term goals.

Educator notes

The SMART goal-setting guide works as follows:

• Specific – students know exactly what the goal is. For example, “I want to save up for a new television.” • Measurable – students measure how far he or she has progressed towards the final goal. For example, “I

need to save $1600.” • Achievable – the goal takes account of the situation at the time. For example, “I am on a steady income

and have the ability to save if I work out a budget. • Realistic – the goal reflects skills, resources and ability to achieve a specific outcome. For example,

“After completing a budget, I can see I can save $30 a week if I cut back on some unnecessary expenses.”

• Timed – there is a definite timeframe so students can track their progress. For example, “I have a 12-month timeframe to save the money. I will evaluate my savings goal every 3 months.”

If students are having trouble coming up with short-, medium- or long-term goals, suggest the following:

• attending a music concert • moving out of home • sports or hobby memberships or equipment • purchasing a new phone or electronic device • buying work equipment • travelling overseas • saving for a child’s school fees and books • purchasing a car or other vehicle • buying a home.

Module 1: Saving, budgeting and spending

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As a guide, short-term goals should take a couple of years to achieve and may include moving out of home, going on a holiday or buying a car. Medium-term goals may include saving for a wedding, taking a big overseas trip or financing a child’s education. Long-term goals may include owning a home and having a comfortable retirement.

You may also wish to discuss ‘needs’ coming before ‘wants’ when prioritising goals.

Activity 4a: What is your budget?

Students watch videos and create a personal budget.

Educator notes

Encourage students to create a budget that’s tailored to their unique circumstances. However, remember to let students know that they do not have to use their personal financial data within the budget. They can use indicative data. Encourage students to make the data realistic so they get a sense of what is required to develop a budget.

A budget is a spending plan based on how much cash is received and how much is spent. Students should put the amount they want to save in the budget like a fixed expense. That ensures students save that set amount each pay. Otherwise students may spend more on flexible expenses and forget about saving.

You may need to provide students with support in calculating income and expenditure across the same timeframes (weekly, fortnightly or monthly).

Example 1:

A gas bill is distributed every three months (quarterly). If a quarterly gas bill totals $182.00 you may need to assist students in working out how much the gas bill would amount to per week. Because there are 13 weeks in a three-month period, the formula would be as follows:

$182 ÷ 13 (weeks) = $14 per week.

Example 2:

A student’s rental expenses may be $1,450 per month. Even though there are 12 months in a year, there are actually 26 fortnights in a year. To work out how much rent students pays per fortnight, the formula would be as follows:

Work out how much rent they pay per year:

$1,450 x 12 (months) = $17,400 per year.

Divide the annual rent amount by the number of fortnights in a year:

$17,400 ÷ 26 (fortnights) = $669.23 per fortnight.

Activity 4b: Review your goals and budget

Students watch videos then review Activities 3 & 4a now they have a better understanding of their expenses.

Activity 5: How will you save your money?

Students watch a video and explore savings and/or investment plans using an online calculator.

Educator notes

If students are having trouble thinking of ways to save money, you may suggest one of the following:

• Make your own lunch. • Take out a set amount of cash for a night out and leave the cards at home. • Do you really need to own a car? Think about using a share car service or public transport when you

can. • Use the internet to research, compare prices and get information about sales. • Brand new? Save a fortune on second-hand goods at auctions, garage sales, online marketplace sites. • Never go to the supermarket when you’re hungry.

Module 1: Saving, budgeting and spending

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• Next time you shop for groceries, try some home-brand labels. • Get a debit card to avoid the high interest charged on credit cards and to make purchases using your

own money to avoid running up a debt.

Opportunity for discussion

• Now that purchases and payments have become invisible, what are some tips to make sure you: o Never missed a payment and avoided late fees with BNPL services or loan repayments? o Have enough money in your account for automatic deductions (bills, streaming services)? o Don’t overspend when using tap-and-go payments?

Activity 6: How will you invest your money?

Students watch a video then read up on ‘investing’ on the Moneysmart website.

Optional activity: Cryptocurrencies and ICOs

Students read about cryptocurrencies on the Moneysmart website then answer a few questions.

Cryptocurrencies and initial coin offerings (ICOs) have emerged over the last 10 years as investments. Cryptocurrencies, also known as virtual currencies or digital currencies, are a form of electronic money. They do not physically exist as coins or notes.

Students explore cryptocurrencies and ICOs a bit more as this investment option is very different to other types of investment. They go to Moneysmart’s Cryptocurrencies and ICOs page to research and answer the following questions (Note: content on this page change to keep up with changes in the market):

• Identify differences between cryptocurrencies and traditional currencies: o One is digital and one is physical o Anyone can create a digital currency, so at any given time there can be thousands of

cryptocurrencies in circulation. Each cryptocurrency has different capabilities

o Although you can buy goods and services with cryptocurrencies, they are not legal tender and not widely accepted.

• List two different types of cryptocurrency: o Bitcoin; Ethereum; Litecoin; Ripple; Stablecoin

• What are some of the risks involved with investing in cryptocurrencies? o Fewer safeguards o Values fluctuate o Your money could be stolen o Cryptocurrency scams o ICO scams

• Pick one of the risks you identified and explore it in more detail. What did you find out?

Module 1: Saving, budgeting and spending

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Module 1: Review questions and answers

Assessment discussion

Note: Students have the opportunity to complete the following review questions online. They receive a summary result (eg 5 out of 6) but their results are not recorded. You may wish to follow up the questions with discussion.

These questions come directly from the online module Saving, budgeting and spending.

1. Is this statement true or false? A debit card uses someone else’s money for your purchases, which you can pay back at a later date.

Answer: False. This is the definition of a credit card. A debit card uses your own money.

2. Is this statement true or false? In regard to goal setting, the letter ‘R’ in the acronym SMART stands for ‘reliable’.

Answer: False. ‘R’ stands for ‘realistic’. The goal can be achieved if you really work at it.

3. Is this statement true or false? The good thing about a budget is that you only have to do it once.

Answer: False. Budgets must be reviewed on a regular basis, especially when your circumstances change.

4. Which of the following statements about budgeting is incorrect? a. A well-constructed budget will be specific to an individual’s needs. b. It is important to identify all of your expenditures as accurately as possible. c. Budgeting is a good idea but too hard to do because of the complex calculations. d. When making your budget, what you get to save is determined by whatever is left over.

Answer: c and d.

5. Is this statement true or false? Ability with finances is like any other skill. You can learn about it and improve.

Answer: True. Everyone can improve their knowledge of and skills with finances and take better control of their money.

6. Is this statement true or false? The following is an example of a SMART goal for Kaz: ‘I want to have enough money to buy a new camera. It will cost $1000.’

Answer: False. This goal doesn’t have a timeframe.

Additional Moneysmart calculators & content

Consider using the following calculators and content to further support the concepts saving, budgeting and spending.

Calculators:

• Budget planner • Savings goal calculator • Investor toolkit • Moneysmart cars app

Videos:

• Starting a budget (1:07 mins) • Buy now pay later services (1:09 mins)

Content:

• Budgeting • How to do a budget • Track your spending • Saving • Savings accounts • Simple ways to save money • Save for an emergency fund • By Now, Pay Later services (BNPL)

Module 2: Personal tax

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MODULE 2: Personal tax WHAT’S CHANGED?

Income tax rates changed in July 2021. The table shown in the video is not current. Visit the ATO website to see the up to date tax rates. The videos and online assessment refer to the previous tax rates.

Activity 1a: Storing your receipts

Students watch videos then list ways they currently store receipts.

Educator notes

If students are having difficulty coming up with ideas, suggestions may include:

• a plastic zip lock envelope • a shoebox • receipts electronically scanned and saved to a computer in a file labelled with the tax year • obtaining a desktop receipts spike from a stationery store • creating a folder and storing it in a filing cabinet or secure cupboard.

Activity 1b: Understanding receipts

Students refer to videos and search ATO website to answer questions regarding their receipts.

Educator notes

Receipts for common deductions may include:

• work-related expenses • self-education expenses • charitable donations • the cost of managing your tax affairs (paying an accountant).

A receipt must include the following information:

• name of the supplier • amount of the expense • date on which it was incurred • nature of the expense • date of the document.

Receipts must be kept for five years from the date a tax return is lodged.

Things that cannot be substituted for a receipt include credit card slips, bank account statements and invoices.

Opportunity for discussion

The video talks about storing paper receipts but what are some tips for storing digital receipts?

• Example: create folders in email to store all digital receipts • Email phone receipts to your email

Module 2: Personal tax

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Activity 2a: What is your assessable income?

Students watch videos and identify assessable income. If required, they can search the ATO website.

Educator notes

Examples of assessable income include:

• wages, salaries and bonuses received as employment income • clothing and tool allowances paid by an employer • income support payments from the government, such as family and youth allowances • pensions and annuities • bank interest • dividends earned from ownership of shares in a company.

Examples of non-assessable income include:

• pocket money • lottery or prize winnings • small gifts or birthday presents • some government payments • child support • the tax-free portion of a redundancy payment • government super co-contributions.

Activity 2b: What are your allowable deductions?

Students watch a video and identify allowable deductions.

Educator notes

Common deductions include:

• vehicle and travel expenses directly connected with work but not for normal trips between home and work, which are considered private travel

• clothing, laundry and dry-cleaning expenses that are specific to the occupation, or protective clothing required for the job

• self-education expenses when the course of study is directly connected to the current employment • gifts and donations if it’s a genuine gift of money or property to a deductible gift recipient (DGR) – not

claimable if you get a benefit, such as raffle tickets or fundraising chocolates • tools, equipment and other assets used for work, depending on the cost of the item – items that cost

$300 or less may be claimed immediately • home office expenses – if you perform some of your work from a home office, you are entitled to a

deduction for the costs you incur in running it (e.g. equipment, work-related phone calls, utilities) • the cost of managing your tax affairs (paying an accountant), but only in the year they are incurred • union or professional fees.

You cannot claim private expenses or the total cost of a capital item in one year. A private expense may be:

• the cost of getting the bus to and from work • money you spend on your rent • buying lunch each day.

Module 2: Personal tax

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Activity 3: Lodging your tax return

Students watch a video and visit ATO website for information on lodging tax returns.

Activity 4: Key terms and definitions

Students watch video and match key terms to their definitions.

Educator notes

• Payment summary – a statement from your employer showing the income you received and total amount of tax withheld for the financial year

• Assessable income – income before any allowable deductions – examples include wages, employment bonuses, government income support, work-related allowances and bank interest

• Tax-free threshold – the amount of money you can earn before you are required to pay income tax • Tax File Number – a unique number issued to you by the ATO to identify your Australian tax dealings • Allowances – a benefit you receive from your employer related to your work, such as for tools and/or

clothing • Allowable deductions – expenses that you can claim to reduce your assessable income, such as work-

related expenses, donations and tax return preparation • Taxable income – assessable income minus allowable deductions • Tax offset – a reduction in the amount of tax you must pay, worked out after tax is calculated, e.g. for

low-income earners • Tax return – an ATO form that you fill in to state your income so they can work out how much tax is

payable

Tip in Student workbook: Applying for your tax file number (TFN)

To apply for a TFN visit the Appy for a TFN page on the ATO website and follow the links to the relevant application to suit your circumstances.

Module 2: Review questions and answers

Assessment discussion

Note: Students have the opportunity to complete the following review questions online. They receive a summary result (eg 4 out of 5) but their results are not recorded. You may wish to follow up the online assessment with an open discussion.

These questions come directly from the online module Personal tax.

1. Which of the following receipts is assessable income?

a. Tool allowance b. Lotto win c. Christmas bonus paid by your employer d. Christmas gift of $100 from your uncle

Answer: (a) and (c) as they both relate to work performed. (b) is not related to work. (d) relates to a private relationship and not to work performed.

2. Which of the following expenditures are deductible?

a. Full cost of a welder at $1400, for a welding apprentice b. A multimeter used by an electrical apprentice costing $270 c. The cost of a $45 haircut because your boss asked you to get one d. The cost of making your lunch at home to take to work

Module 1: Saving, budgeting and spending

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Answer: (b) is deductible as it is under $300. (a) is not deductible but you can claim a percentage as depreciation. (c) and (d) are not deductible as they are private expenses.

3. Income tax offsets reduce your assessable income. True or false?

Answer: False. They reduce your tax payable.

4. Medicare levy is calculated on a percentage of your assessable income. True or false?

Answer: True

5. In the 2013–14 tax year, how much tax is payable on $37,000?

Answer: $3572.

The first $18 200 is tax-free. But the amount between $18,200 and $37,000 is taxed at 19 cents for every dollar.

$37,000 – $18,200 = $18,800

$18 800 x 0.19 = $3572

Taxable income Tax on this income $0–$18,200 Nil

$18,201–$37,000 19c for every dollar over $18,200

$37,001–$80,000 $3572 + 32.5c for every dollar over $37,000

Additional Moneysmart calculators & content

Consider using the following calculators and content to further support personal tax education.

Calculators:

• Income tax calculator • GST calculator

Teaching resource:

• Bite size activity: How does income tax work?

Content:

• Income tax • Lodging a tax return • Tax and super

External:

• ATO online services simulator (tax return)

Module 1: Saving, budgeting and spending

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MODULE 3: Superannuation WHAT’S CHANGED?

• The video quotes ASFA (Association of Superannuation Funds of Australia) standard benchmarks that have been superseded. The benchmark for a couple (in Aug 2021):

o living a comfortable lifestyle was $55,000 per year, is now $63,352 o living a moderate lifestyle was $35,000, is now $$41,170.

• Super contributions (super guarantee) increased from 9.5% to 10% on 1 July 2021. Note: The videos and online assessment still refer to 9.5%.

• The video uses an old version of Moneysmart’s Superannuation calculator in the demonstration. It may look different, but the updated version still has similar functionality.

Activity 1: Saving for your retirement

Students watch videos then list some goals for retirement.

Educator notes

If students are having trouble listing goals for retirement, offer some suggestions such as travelling around Australia, funding a new hobby or participating in a sport.

Consider discussion around what sort of lifestyle students want in retirement.

Activity 2: Comparing funds

Students watch a video then compare super fund options.

Educator notes

Show students a MySuper dashboard either on screen or a printed copy. Walk through the information they require to complete the table. As an alternative, visit Moneysmart’s MySuper funds list.

Remember to let students know that they do not have to use their personal super data. They are able to use indicative data. Encourage students to make the data realistic so they get a sense of what is required to work out their superannuation information.

If a student has an industry superannuation fund, direct them to compare their fund with a retail fund, and vice versa.

Tip in Student workbook: Employer superannuation contributions

For most employees, your employer must pay a percentage of your salary into your super fund account. This is called the super guarantee and it’s the law. The super guarantee is currently 10% (in 2021). Further increments of 0.5% will apply annually up to 2025-26, when the Super Guarantee rate will be set at 12%.

You should receive the super guarantee if you are aged 18 or older and get paid $450 or more (before tax) per month. If you are under 18, you should get the super guarantee if you work more than 30 hours per week and earn over $450 per month.

It is important that you get paid what’s rightfully yours. The employer contributions are based on your ‘ordinary time earnings’. Ordinary time earnings are what employees earn from their ordinary hours of work including over-award payments, bonuses, commissions, allowances and certain paid leave.

Over the course of your working life, these contributions from your employer add up, or ‘accumulate’. Your super money is also invested by your super fund, so it grows over time. When you retire, you will have money to live off.

If you are self-employed, you are not required to pay yourself superannuation. However, it is still very important to think about growing your retirement savings and super can be a great, tax-effective way to do this. For self-employed people, your super contributions may be tax deductible.

Module 1: Saving, budgeting and spending

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• The rules regarding your super entitlements are governed by the Superannuation Industry (Supervision) Act 1993. The Fair Work and Equal Opportunity legislation in your state or territory governs other rules regarding employee entitlements.

Activity 3: Checking your employer contributions

Students watch a video then use Employer contributions calculator.

Educator notes

Show students a MySuper dashboard on screen or print one out. Walk through the information they require to complete the activity. Remember to let students know that they do not have to use their personal super data. They are able to use indicative data. Encourage students to make the data realistic so they get a sense of what is required to work out their super information.

Tip in Student workbook: Extra super contributions

You can make extra contributions to your super fund account by:

• putting some of your savings into your super account

• asking your employer to deduct extra money from your pay (either before tax or after tax is taken out, depending on your income) and paying this into your super account – before-tax super contributions are called salary sacrificing to super.

Personal contributions to your superannuation fund

Salary sacrificing

When you and your employer agree to pay a portion of your pre-tax salary as an additional contribution to your superannuation. This can be a tax-effective strategy and usually suits middle to higher income earners.

After-tax contributions

Money deposited into a super fund after you have paid any tax on it. Different from pre-tax contributions (salary sacrificing), which are contributions made before income tax or where a tax deduction is claimed.

Growing your super

Putting money into your super account early and often will grow your super over the long term. Your balance grows from the investment returns your fund achieves. These returns compound over time. The longer you have to save through super, the more chance your savings have to grow. Even small extra contributions early in your working life will make a difference to your total amount of super at the end of your working life.

Activity 4: Super co-contributions

Students watch a video then research super contributions.

Activity 5a: Find lost super

Students watch a video then search for lost super on ATO website.

Educator notes

Assist students to use the ATO’s keeping track of your super. However, remember to let them know that they are not obliged to share their personal superannuation data.

Module 1: Saving, budgeting and spending

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Activity 5b: Keep track of your super

Students watch a video then register for myGov.

Educator notes

Assist students to use the ATO’s keeping track of your super. (used to be called ‘Super Seeker’). However, remember to let them know that they are not obliged to share their personal superannuation data and, therefore, may wish to skip this activity or do it in their own time.

Activity 5c: Check your super statement

Students watch a video and check details from a personal super statement.

Educator notes

Remember to let students know that they do not have to use their personal super data. They are able to use indicative data. Encourage students to make the data realistic so they get a sense of what is required to work out their super information. You could assist students by visiting a super fund’s website and downloading a PDS to demonstrate how to find the relevant information.

Tip in Student workbook: Check your super statement

Ask for an explanation

If you don’t understand the statement or think there is an error, contact your super fund. You have the right to a clear explanation.

Keep statements safe

Keep all your statements in a safe place to can keep track of your accounts and know how to contact your fund.

Activity 5d: Consolidating your super

Students watch a video and understand advantages of consolidating super funds.

Educator notes

Assist students to use the ATO’s keeping track of your super. However, remember to let them know that they are not obliged to share their personal super data and, therefore, may wish to skip this activity or do it in their own time.

Tip in Student workbook: Benefits of combining accounts

To manage your super more easily and save costs, consider combining small accounts into a single fund. The benefits of putting several small super fund accounts into one account are to:

• save costs by paying only one set of fees

• reduce your paperwork

• make it easier to keep track of your super.

Before you consolidate your super accounts, take a look at a copy of your super fund PDS and check:

• if you have to pay any termination fees

• if you will lose any insurance benefits

• that the fund you are consolidating into has all the services you need

• that you are choosing a fund with low fees and good returns.

Consolidating your small super fund accounts takes a little bit of effort in the short term but will reward you in the long term. Feel in control and watch your super grow! Remember that the fund with the biggest balance may not be the best one for you. So do some research before combining accounts.

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Module 3: Review questions and answers

Assessment discussion

Note: Students have the opportunity to complete the following review questions online. They receive a summary result (eg 5 out of 6) but their results are not recorded. You may wish to follow up the questions with discussion.

These questions come directly from the online module Superannuation.

1. The super guarantee contribution is a contribution equal to a minimum of 9.5% of an employee’s ordinary time earnings paid by an employer into an employee’s superannuation fund. Under what circumstances is an employee eligible for the compulsory superannuation guarantee payments by an employer? Select the correct options. (There can be more than one.) a. If you are aged over 18 years, working full-time, part-time or casually, and depending on your

monthly income. b. If you are aged less than 18 years, working full-time, part-time or casually, depending on your

monthly income and how many hours you work. c. Only if you are over 18 years and work full-time.

Answer: (a) Correct (b) Correct (c) Incorrect

2. Megan is a self-employed electrician and she wants to know whether she can contribute to superannuation. Can she make monthly contributions? Select one. a. No. As she is self-employed, she cannot contribute. b. Yes. She can pay into a super fund with her own contributions. c. Yes. She can make each person she deals with contribute 9.5% of the value of work she does for

them. d. No. She can only contribute once a year.

Answer: (b) Yes. She can pay into a super fund with her own contributions.

3. Some of the employees want to ‘salary sacrifice’. Is it legal for the company to allow employees to ‘salary sacrifice’? Is this allowed or not allowed?

Answer: Allowed

4. What things should you compare when choosing a super fund? a. Fees, investment options and long-term performance b. Last year’s investment return

Answer: (a) Compare long-term performance, fees and the investment options. Don’t focus on last year’s returns.

5. Kwong has changed jobs a number of times and is not sure if he has rolled over all of the super he received from earlier jobs into his new super fund. The best way he can find out if he has lost any super is to: (select one) a. Ask his present employer b. Ask all of his previous employers c. Check the ATO website d. All of the above

Answer: (c) Check the ATO website

6. The manager of a novelty business has asked you a number of questions about superannuation. Read the statements below and select the action that the company is allowed to perform with regard to superannuation.

a. The business sometimes has cash flow problems and we want to pay the super guarantee charge into an employee’s super fund every six months.

b. As part of a new enterprise bargaining agreement, it is agreed that the company will pay a 12% super guarantee contribution.

Answer: (a) Not allowed (b) Allowed

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Additional Moneysmart calculators & content

Consider using the following calculators and content to further support superannuation education.

Calculators:

• Superannuation calculator • Employer contributions

calculator • Retirement planner

Videos:

• What is super (1:14 mins) • Superannuation – what are you

owed? (1:16 mins) • Consolidate your super – it’s

easy! (1:35 mins)

Content:

• How super works • Types of super funds • Consolidating super funds • Tax and super • How much super you need • Superannuation scams • Getting your super

External:

• Association of Superannuation Funds of Australia (ASFA) • YourSuper comparison tool - a simple way to compare

MySuper products and help you choose a super fund that meets your needs. It is a government resource, hosted by the ATO)

OPPORTUNITY FOR DISCUSSION

How much do you need to retire?

Superannuation can provide lively discussion in the classroom that can be adapted to into a classroom activity. Particularly, it engages students to think about how they want to live when they stop working. According to the Association of Superannuation Funds of Australia (ASFA) (in Aug 2021) the benchmark for a couple:

• living a comfortable lifestyle was $55,000 per year, is now $63,352 • living a moderate lifestyle was $35,000, is now $$41,170

To help scaffold student learning when using the calculators, ask students to describe the lifestyle they would like to live in retirement and produce a budget to support that. For example, will they still be paying a mortgage during retirement? From there work out how much money they will need to have set aside in super to support this. Are they planning to take a career break? Will they need to work out extra contributions to support this?

Co-contribution to your superannuation fund

You don’t need to apply for government co-contributions – the ATO will work out your eligibility and it will be paid directly into your super account. Make sure your super fund has your tax file number (TFN) so you don’t miss out on the payment. If you are eligible, you will receive the payment whether or not you lodge a tax return. However, if you don’t lodge a tax return the process can take up to 14 months.

Co-contributions to your superannuation fund

Government co-contributions

The super co-contribution is designed to assist eligible individuals to save for their retirement. If you are eligible and make personal super contributions during a financial year, the government will pay a super co-contribution up to certain limits.

To receive the government co-contribution, you will need to lodge a tax return for the year. The government will then work out how much you are entitled to. If you are eligible, the government will pay the co-contribution directly to your super fund.

See the most up-to-date Co-contribution income thresholds on the ATO website.

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Getting a job

Superannuation in the context of getting a job can engage students in thinking about how superannuation fits into their everyday working life. Read through Moneysmart’s ‘Getting a job' page with students. To check student understanding, ask students to develop a checklist of the ins and outs of income, tax and super.

Early access of super

You can get your super when you retire and reach your 'preservation age' — between 55 and 60, depending on when you were born. Discussion points may include:

• Why does the government set a preservation age? • Can you access your super early? • What are the pros and cons of accessing your super early?

Find out more at Getting your super.

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MODULE 4: Debt management WHAT’S CHANGED?

• The video uses credit cards and loans as common examples of how people can get into financial difficulty and effect their credit history and credit report. Remember, there are now other mainstream financial services/products that may also lead to missed payments and over-spending. Some examples include:

o By Now Pay Later (BNPL) o Tap and Go payments, smart phone/watch payments o Same day credit providers for small personal loans

• The video uses an old version of Moneysmart’s Personal Loan calculator in the demonstration. It may look different, but the updated version still has similar functionality.

• The video uses an old version of Moneysmart’s Interest Free Deal calculator in the demonstration. It may look different, but the updated version still has similar functionality.

Activity 1: Using Moneysmart calculators

Students watch videos then use Moneysmart calculators while considering need or want scenarios.

Educator notes

Answers

How much will Bec really be paying for her television?

• Per month: $140.20. Total cost: $1682.40

How much was Will’s loan costing him?

• Per month: $535. Total cost: $32 103

How much will Sally’s loan cost her?

• Per month: $154. Total cost: $3694

Activity 2a: Comparing debt products

Students watch videos then research and compare different debt products.

Tip in Student workbook: Benefits of combining accounts

• Use a debit card not a credit card

Obtain a debit card to avoid the high interest charged on credit cards and to make purchases using your own money to help avoid running into debt.

• Study assist

Some people are eligible to borrow money from the government to pay for course tuition fees. For further information regarding eligibility requirements visit studyassist.gov.au. There are loan fees associated with this type of debt.

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Activity 2b: The impact of saving

Students watch videos then work through scenarios to help people save for their goals using online calculators.

Educator notes

Assist students using Moneysmart Savings goals calculator so that they can work through the calculator and record the outcome of their investigation effectively.

Answers How much will Bec need to save per month? $104.44 What will the balance of Will’s account be after seven years? $54,418 What will the balance of Sally’s account be after seven years? $66,915

Tip in Student workbook: Savings

• Saving for goals

The best way to save for short-term or long-term goals is to reduce your spending on non-essential items, like entertainment, dining out, memberships or subscriptions. It is often easier to stay on top of your spending if you use cash, EFTPOS or a debit card when shopping instead of using a credit card or signing up to interest-free deals.

• Lenders’ mortgage insurance (LMI)

Lenders’ mortgage insurance (LMI) is a type of insurance that credit providers take out to protect themselves from borrowers not being able to repay the loan. The fee the lender charges you for LMI can be many thousands of dollars and is usually added to your home loan amount.

Activity 3a: Paying off credit cards

Students watch a video then use a real credit card statement to explore repayments using an online calculator.

Activity 3b: Comparing credit cards

Students watch a video then use comparison websites to compare credit cards.

Tip in Student workbook: Credit cards

To see some smart ways to use your credit card – visit Moneysmart’s Credit cards page

Activity 4: Making the right choice

Students watch videos, reflect on Activity 1 and revise their advice to people in the scenarios.

Activity 5: Staying out of debt

Students watch videos then read the managing debts webpage on Moneysmart to list three tips to share.

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Optional activity: Check your credit report

Optional activity for students to get a free credit report.

Tip in Student workbook: Credit-reporting agencies

Don’t search for credit-reporting agencies over the internet, as you may find fake sites offering ‘free credit reports’ that are really out to scam you. If you want to contact a credit-reporting agency online, type its URL into the address bar of your web browser.

Module 4: Review questions and answers

Assessment discussion

Note: Students have the opportunity to complete the following review questions online. They receive a summary result (eg 5 out of 6) but their results are not recorded. You may wish to follow up the questions with discussion.

These questions come directly from the online module Debt management.

1. Your credit report contains information about your credit history. True or false? Answer: True. Your credit report contains information about your credit history. If you fail to pay or pay late on a debt, the credit provider can tell the credit-reporting agencies and they then record the late or missed payment on your credit report.

2. A credit contract is a legal obligation that must be in writing. True or false? Answer: True. A credit contract is a legal obligation that must be in writing. Remember, if you do not understand the credit contract, do not sign it.

3. A credit card allows you to borrow money up to a certain limit but tends to have higher interest rates than other forms of credit. Answer: True. Credit cards allow you to borrow money but tend to have higher interest rates than other forms of credit.

4. You have borrowed money for a car using a personal loan. The credit provider can sell your car if you stop repaying the loan. True or false? Answer: True. The car is security on the loan. This means that the credit provider can sell the car.

5. You can only purchase online using a credit card. True or false?

Answer: False. You can make these purchases with a debit card or often through PayPal.

Additional Moneysmart calculators & content

Consider using the following calculators and content to further support debt management education.

Calculators:

• Budget planner • Payday loan calculator • Interest-free deal calculator

Teaching resources:

• Rookie: Credit and debt (Educator guide) • Bite size activity: Why borrowing can cost

you more

Content:

• Managing debt • Get debt under control • Dealing with debt collectors

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MODULE 5: Insurance WHAT’S CHANGED?

• The information around insurance covered in this module remained consistent.

Tip in Student workbook: Choosing the right insurance

Choosing the right type of insurance and deciding the amount of cover you need is important in making sure that you are adequately covered if something goes wrong. You need to be prepared to do some research on the different insurance companies and options available to you.

Insurance can provide part or all of the money you may need when things go wrong. But with so many companies providing different types of insurance, it’s important to read the fine print, ask lots of questions and find the right policy for your needs.

There are many different types of insurance policies that you can take out. Insurance is about managing risk. By taking out an insurance policy, you are transferring some of the financial risk to your insurer for a fee or ‘premium’. Without insurance, you’re carrying the risk yourself.

• Car insurance

Buying a car is exciting. Many people spend weeks test-driving different models to find a vehicle that suits their budget, lifestyle and personality. You should also think hard about car insurance. The type of cover you take out will affect the overall and ongoing cost of your vehicle. Always shop around for insurance before you go to the car yard.

• Warning

If you’re paying off the purchase of an asset such as a car and it gets stolen or you crash it and you don’t have insurance, you could find yourself paying off the car for the life of the loan while not having use of the car, or being able to afford another.

Activity 1a: Compulsory third-party car insurance

Students watch videos then research state and territory rules relating to third party car insurance.

Activity 1b: The right car insurance

Students watch videos then use one of their/families real car insurance policy to complete the activity.

Activity 2a: Estimating home contents insurance

Students watch a video then research home contents insurance through an online calculator.

Activity 2b: Estimating home insurance

Students watch a video then use an online calculator to estimate replacement costs.

Activity 2c: Researching home and contents insurance

Students watch a video then research and compare insurers online.

Tip in Student workbook: Home insurance

When insuring your home, you need to work out if you want ‘total replacement’ cover or ‘sum-insured’ cover. Total replacement cover includes all the costs to rebuild your home to the standard it was prior to an event.

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Sum-insured cover is more common and will cover you up to a set amount. There are a number of variations to these two basic models, so read the fine print and ask as many questions as possible when comparing insurers.

You need to keep in mind that if you ever need to rebuild your house, you not only have to pay the costs of labour and materials but will also be faced with a range of extra or ‘supplementary’ costs, including paying for:

• architects or other professionals to draw up plans • lodging plans with your local council • alternative accommodation while your house is rebuilt • services to make your property safe for workers

removal of debris from the site.

Activity 3: Choosing the right insurance cover

Students watch videos then conduct research to answer some questions.

Educator notes

Examples of personal insurance include:

• private health insurance • life insurance (including total and permanent disability cover) • income protection insurance • trauma insurance.

Examples of other insurances:

• contents insurance • trade tool insurance • computer and mobile insurance • travel insurance • extended warranty and care insurance.

Tip in Student workbook: Your super and life insurance

Check your superannuation policy and see what life insurance cover it includes. Find out how much it covers you for. If you think it may not be enough cover, research how much it would cost to increase the amount through your superannuation fund for increased life insurance cover versus the cost of getting a separate life insurance policy.

Some superannuation policies offer income protection insurance to replace lost income if you are unable to work due to illness or injury. It is an important consideration for anyone who relies on an income. It is especially important for people who have dependents or financial commitments. As above, check if it is worth increasing the amount of cover through your superannuation versus through a separate policy.

Module 5: Review questions and answers

Assessment discussion

Note: Students have the opportunity to complete the following review questions online. They receive a summary result (eg 5 out of 6) but their results are not recorded. You may wish to follow up the questions with discussion.

These questions come directly from the online module Insurance.

1. The bigger your excess, the lower your premium. True or false?

Answer: True. A bigger excess means you pay a bigger portion, or the cost of repair or replacement and the insurer’s costs are reduced by your contribution.

2. Which of the following is not one of the four ways of managing risk?

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a. Transfer the risk b. Avoid the risk c. Reduce the risk d. Ignore the risk

Answer: (d) Ignore the risk. By ignoring the risk, you are not managing your risk.

3. Having a dog at home is an example of avoiding the risk of having your home burgled. True or false?

Answer: False. This is an example of risk reduction.

4. If you take out private health cover (hospital) after the age of 30 your premiums will be higher than if you take it out before the age of 30. True or false?

Answer: True. Taking out private health cover (hospital cover) after the age of 30 will add to your premiums.

5. Compulsory third-party insurance covers the theft of your vehicle. True or false?

Answer: False. You need comprehensive insurance or third party, fire and theft to cover the risk.

6. Most mobile phone insurance policies will give you a new phone if you lose one that’s a few years old. True or false?

Answer: False. They only pay an amount based on the value of your old ‘used’ phone – not replacement value.

Additional Moneysmart calculators & content

Consider using the following calculators and content to further support insurance education.

Calculator:

• Life insurance calculator

Videos:

• Do you need to pay for insurance in super? (1:30 mins)

Teaching resource:

• Bite-size activity: What is opportunity cost?

Content:

• How life insurance works • Total and permanent disability (TPD)

insurance • Car insurance • Pet insurance