New OCR Diploma offers money management know-how

Having the knowledge to manage your money effectively has never been more important, especially in today's economic climate. Accordingly, OCR, a leading UK awarding body, has included a unit - Learning to manage your personal finances - as part of its new Business, Administration and Finance Diploma.

The Diploma combines theoretical and practical learning and consists of units designed to teach transferable personal, learning and thinking skills and how to apply them to the world of business and finance. Principal Learning is a component of the Diploma, providing learners with knowledge and skills relevant to specific employment sectors.

Learning to manage your personal finances is a Level 1 Principal Learning unit that encourages learners to consider various personal financial scenarios and ask themselves: What will happen if I get into debt? How can I avoid this happening? How do I budget effectively so that my expenditure is not higher than my income?

Upon completion of the unit, learners will be able to budget effectively, plan their future spending, and will have had the opportunity to choose appropriate bank accounts based on their knowledge of savings and borrowings and interest calculations.

Peter Davies, OCR Qualifications Manager, said: "The media continually reports on the relatively low levels of knowledge and understanding of financial issues; for example, many people have got into debt and are finding it very difficult to pay off that debt. In the new Principal Learning unit, people are encouraged to think about the possible consequences of getting into debt and the likely effects, not only on themselves, but also for their family. We believe that by teaching people how to manage their money in today's world will help to reduce the likelihood of such crises occurring."

Learners are given an opportunity to consider the different circumstances they could encounter and to explore how these could affect their financial needs in the short to medium term. This gives them the opportunity to appreciate the financial significance of potential changes, such as going to university or buying or renting a home. Questions such as: How am I going to be able to afford to get through university? and how much money will I need to save if I want to set up a home? are considered.

Nicola Bowman, involved in the development of the Principal Learning, said: "At 14-19 young people start to make financial decisions about going to college, university, starting a job or even buying a car! The Business, Administration and Finance Diploma - available at Levels 1-3 - are exciting new qualifications where learners apply theory to real practical business situations. In the current credit crunch it is more important than ever that learners are able to manage their own finances.

"The personal finance element of the Principal Learning unit promotes good spending habits, in addition to how to seek financial advice to become a savvy saver. Young people are encouraged to look at their own and their family's attitudes and influences to managing money.

Additionally, the Diploma develops learners' understanding of personal finance and how to make the most appropriate and sound decisions, using the variety of different financial products and services around - whether they are saving, borrowing or trying to source suitable financial products."

As well as developing learners' competence in matters of finance, the Learning to manage your personal finances unit (and the Diploma as a whole) also highlights the range of career opportunities available within the UK financial sector.

The OCR Diploma in Business, Administration and Finance will be available for first teaching from September 2009.

For further information, visit ocr.org.uk/diplomas