An Award in Financial Capability: Unveiling the Power of Money Management and Investment – is a 14-week experiential learning unit in personal and business finance. The program has been developed to empower people to change and improve their relationship with money by practising good financial habits. It is a practical, interactive program designed to offer a more engaging experience. The course offers opportunities to generate fruitful conversation, group brainstorming and work on current case studies that we are faced with every day. It also digs into the tools and platforms that can be used for the basics of how-to starting investing and business finance plus giving you a glossary of commonly used financial terms and their simple definition and usage.
Over the 14-weeks, the unit will cover 5 main areas varying from understanding financial pitfalls and attitudes about money to understanding what investing is, and how good debt could benefit your future plans.
The unit is crafted to appeal to a wide audience, catering to both beginners and those with a foundational understanding of finance and investment. Its holistic approach covers various facets, including personal budgeting, debt management, the psychology of money, and the art of investing in stocks, bonds, real estate, and alternative assets. Throughout the unit, learners will gain insights into market trends, risk assessment, and portfolio diversification, empowering them to make informed decisions aligned with their financial goals.
Interactive sessions, case studies, and real-world scenarios form the backbone of the learning experience, enabling participants to apply theoretical knowledge to practical situations. From simulating investment scenarios to dissecting real-time market data, learners will develop a well-rounded understanding of financial tools and strategies.
Moreover, the study unit places a significant emphasis on fostering a mindset of financial responsibility and discipline. It encourages learners to cultivate a sustainable approach to managing their financial resources, emphasizing long-term wealth creation and prudent investment practices.
The unit's instructors bring a wealth of experience from the financial industry, ensuring that learners receive practical insights and guidance from professionals with hands-on expertise. Additionally, guest speakers, workshops, and interactive forums enrich the learning experience, providing a platform for collaboration and networking among participants.
"Financial Capability: Unveiling the Power of Money Management and Investment" serves as a gateway to financial empowerment, guiding individuals toward achieving their financial aspirations, securing their future, and harnessing the potential of sound financial decision-making.
The study unit is split into the following five core modules:
Module 1 - Decision Making and Cognitive Biases:
Understanding Decision Making and Cognitive Biases is crucial for making informed choices. This module delves into the psychology behind decision-making processes, exploring how biases and heuristics impact our judgments. Participants will learn to recognise and mitigate cognitive biases, enhancing their ability to make rational and effective decisions in various contexts but most specifically around money.
Module 2 - The Circular Economy:
The Circular Economy, a sustainable resource management approach, significantly impacts GDP and financial capability. It aligns with Socially Responsible Investing principles and manages inflation and interest rates by reducing resource scarcity and waste. However, social media marketing can lead to biased financial information, potentially causing financial instability. Understanding the relationship between sustainable economic models, responsible investments, and informed financial decisions is crucial for better money management.
Module 3 - Personal Money Management 1 (How to build a spending plan):
This module focuses on the foundations of Personal Money Management. Participants will learn the art of building a comprehensive spending plan tailored to their financial goals. Topics include budgeting techniques, expense tracking, setting financial priorities, and creating a realistic spending plan that aligns with individual aspirations.
Module 4 - Personal Money Management 2 (The basics of how to start Investing):
In Personal Money Management 2, participants delve into the basics of investment. This module introduces investment principles, risk assessment, and various investment vehicles available in a simple, understandable manner. Participants will gain insights into stocks, bonds, mutual funds, and real estate, empowering them to start their investment journey confidently.
Module 5 - Business Finance:
Business Finance is a module designed to equip participants with the fundamental concepts of financial management within a business context. Using financial statement analysis, participants will gain an understanding of financial decision-making that is crucial for business success. The module emphasises the application of financial tools and strategies in real-world business scenarios, catering to aspiring entrepreneurs, corporate professionals or participants wishing to understand more about business finance.
Main Reading List
- Graham, B., Buffett, W. E., & Zweig, J. (2013). The intelligent investor: A book of practical counsel. Harper Collins.
- Kiyosaki, R. T. (n.d.). Rich Dad Poor Dad: What the Rich Teach Their Kids About Money. Lulu.com.
- Benartzi, S., & Thaler, R. H. (2007). Heuristics and biases in retirement savings behavior. Journal of Economic Perspectives, 21(3), 81-104.
- Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263- 291.
- Tversky, A., & Kahneman, D. (1981). The framing of decisions and the psychology of choice. Science, 211(4481), 453-458.
- Kahneman, D. (2013). Thinking, fast and slow. Farrar, Straus and Giroux.
- Thaler, R. H., & Sunstein, C. R. (2021). Nudge: The final edition. Penguin Books
- Wood, F. and Sangster, A. (2018). Frank Wood’s business accounting 2. Harlow (Essex): Pearson Education; London.
