FINA1109 Managing Your Personal Finance

Credit
6 points
Offering
(see Timetable)

If this unit does not have an online alternative, then students who are presently unable to enter Western Australia and whose studies would be delayed by an inability to complete this unit, should contact the unit coordinator (details given on this page) to ascertain, on an individual case-by-case basis, if alternate arrangements can be made to support their study in this unit.

AvailabilityLocationMode
Semester 2UWA (Perth)Face to face Predominantly face-to-face. On campus attendance required to complete this unit. May have accompanying resources online.
Details for undergraduate courses
  • Level 1 elective
Content
This unit highlights the importance of financial literacy in personal financial decision making. It reflects the increased financial responsibility that students face in areas including debt accumulation, financial product selection and retirement savings decisions. Students explore a range of topics including the impact of behavioural biases that are a natural part of decision making, with a view to exploring the impact these biases can have on financial decisions. Students are introduced to time value of money, with examples of the dramatic impact of compounding on both debt and equity. This introduction includes analysis of the cost of credit card debt, loans and mobile phone contracts. Students critique the concept of human capital, with a view to identifying their own human capital and understanding the part that education plays in creating this capital. They explore the interaction between consumption smoothing, debt and investing, along with planning for retirement within the present Australian superannuation system. Students create their own personal balance sheet and a simple plan for their financial future and write a reflective journal concerning this task as part of the unit.
Outcomes
Students are able to (1) demonstrate an understanding of the impact of the time value of money for borrowing and investing; (2) identify the role of biases that can adversely affect their financial decisions; (3) contrast the roles of human and financial capital in spending, saving/investment and borrowing behaviours; (4) explain the concepts of consumption smoothing and evaluate the role within a financial plan; (5) identify the role of long term savings (e.g. for education, housing, retirement); (6) develop written communication skills with the completion of a reflective journal; and (7) identify the steps in the financial planning process and components of a financial plan.
Assessment
Indicative assessments in this unit are as follows: (1) participation (20%)

; (2) assignment (20%); and (3) examinations (60%). Further information is available in the unit outline.

Supplementary assessment is not available in this unit except in the case of a bachelor's pass degree student who has obtained a mark of 45 to 49 overall and is currently enrolled in this unit, and it is the only remaining unit that the student must pass in order to complete their course.
Unit Coordinator(s)
Professor Paul Gerrans
Contact hours
lectures/tutorials/seminars/workshops: up to 3 hours per week
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
  • All students are responsible for identifying when they need assistance to improve their academic learning, research, English language and numeracy skills; seeking out the services and resources available to help them; and applying what they learn. Students are encouraged to register for free online support through GETSmart; to help themselves to the extensive range of resources on UWA's STUDYSmarter website; and to participate in WRITESmart and (ma+hs)Smart drop-ins and workshops.
  • Unit readings, including any essential textbooks, are listed in the unit outline for each unit one week prior the commencement of study. The unit outline will be available via the LMS and the UWA Handbook. Reading lists and essential textbooks are subject to change each semester. Essential textbooks can be purchased from the commercial vendors to secure the best deal. The Student Guild can provide assistance on where to purchase books if required. Books can be purchased second hand at the Guild Secondhand bookshop (second floor, Guild Village), which is located on campus. Copies of textbooks and other readings will be made available for students to access from the Library, online wherever possible as well as in print.