PERSONAL FINANCE & INVESTMENT

SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2N311640
Module Leader Muhammad Nawaz
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • B (January start)

Pre-Requisite Knowledge

Level 1 passes or equivalent.

Summary of Content

The module provides a comprehensive treatment of the principles of personal finance and investment, integrating theory and practice. It provides students with a knowledge and understanding of the interlinked relationships between the various components which encompass personal financial matters. This is achieved by an in depth analysis of the various generic financial products, incorporating the inherent elements of risk and taxation, building up to the technique and stages of personal financial planning. Particular emphasis is given to risks involved in investment, risk profile of investors and how risk affects returns. The module enables the students to develop greater personal "financial capability" as individuals.

Syllabus

Investors and investment : general issues - economic and market influences, client needs, types of risks, investment and risk, main investment choices, providers of financial products. Personal risk management : the range and use of protection products - life insurance, health insurance, critical illness cover, redundancy, personal accident and sickness. Taxation : the range of UK personal taxes - self assessment, income tax and capital gains tax with particular reference to saving and investment, inheritance tax, stamp duty reserve tax. Savings and Investment : cash deposits, national savings and investments, gilts and corporate bonds, equities, Investment trusts, unit trusts, OEICs. Life company investment products. TEPs, ISAs, annuities, derivatives and other investments. Ethical investment. Indices. Company and share market performance and measurement. Risk and return. Property : characteristics, direct on indirect investment, mortgages - arranging a mortgage, types of mortgages, range of mortgages. Ancillary products and uses. Pensions : State and private provision, types of schemes. Financial planning : analysis of consumers circumstances, tax planning strategies, constructing a portfolio, asset allocation. Application of products solutions to specific consumer's circumstances. Case studies. Report writing.

Learning Outcomes

On successful completion of this module, the student should be able to :1. Appreciate the role, operation and function of markets and financial institutions.2. Analyse the nature and purpose of the various types of financial products available.3. Describe the range of UK taxes and in particular understand the key principles of income tax and capital gains tax applying to individuals and investments.4. Understand tax planning strategies.5. Understand the factors which influence the investment behaviour of private individuals.6. Discuss and evaluate the relationship between the key areas of risk, investment, protection and provision, and how these can be utilised in the satisfaction of personal financial needs.7. Analyse consumers' circumstances and suitable investment products, taking account of any existing arrangements.8. Identify and effectively deploy the issues and techniques involved in a financial planning report.9. Apply generic investment and protection product knowledge and understanding to specific consumer's circumstances in the construction of financial planning reports.

Teaching / Learning Strategy

Lectures provide students with essential knowledge to build on the practical, problem orientated tutorial sessions. The tutorials also provide a medium for team work and presentation skills to be utilized as the students become involved in research based product analysis. A particular roleplay scenario involves all students taking part in a structured adviser/client situation after considering a case study and also provides an opportunity for critical evaluation. Guest lecturers and videos/DVDs provide a varied stimulus whilst the coursework encourages use of research and initiative, developing personal transferable skills. The following assessment and feedback strategies will be adopted by this module: A Facilitating the development of self-assessment. Students will be provided with a template for the evaluation of their coursework before it is formally assessed and asked to assess the main strengths and weaknesses of their submission. Regular automated formative learning questions and quizzes wit automated feedback will be available via Blackboard. B Encouraging dialogue Students will be asked to identify examples of feedback which they find helpful and discuss this in seminars or communicate this on Blackboard. C Clarifying good performance Students will be given clear guidance on requirements and given time to reflect on those criteria. Sample coursework will be made available in class. Sample questions and specimen solutions will be available on Blackboard. D Providing opportunities to close the gap between current and desired performance. Feedback will identify generic and individual action points to enable students to improve their performance. Students will also be encouraged to identify own action points to improve performance. E Delivery of high quality information about learning. Feedback will be provided soon after submission and provide information on strengths, weaknesses and corrective advice. Feedback on seminar work will be continual and generic feedback on formative assessments provided via Blackboard. F Encouraging positive motivational beliefs and self esteem. All feedback will be constructive and clear. It will identify strengths in performance. G Providing information to teachers that can be used to help shape the teaching. When students undertake a self assessment of their wrk they will be asked to identify the most challenging areas of their assignments.

Indicative Reading

CORE TEXT : BPP Publishing (latest) Certificate in Financial Planning - study course CF2 - Investment and Risk Recommended reading : Callaghan, Fribance and Higgison ( 2007) Personal Finance, Wiley/ the Open University BPP Publishing (2004) FPC study text : Protection, Savings and Investment. CII (2006) Certificate in financial planning - study course CF5 - Integrated Financial Planning Harrison Debbie (2005) Personal financial Planning theory and Practice, FT Prentice Hall. Vaitlingham R (2005) The Financial Times Guide to using the Financial Pages, Pitman publishing. Marshall C. (2007) The Life Assurance and Pensions Handbook, Taxbriefs. The Financial Adviser's Factbook (2006). London. Gee. Journals / Periodicals Money Management Personal Finance Investors Chronicle Pensions World Your Mortgage Money Marketing Financial Adviser Weekend issues of FT, times, Telegraph, Observer , Guardian etc contain personal finance sections. Websites : www.abi.org.uk www.nsandi.com www.iii.co.uk www.moneymarketing.co.uk www.londonstockexchange.co.uk www.thisismoney.co.uk www.moneyfacts.co.uk www.mortgageslaidbare.co.uk www.fsa.co.uk

Transferrable Skills

The students will develop effective problem solving and analytical skills. Through the application of theory to practical examples, and the presentation of information, they will develop their oral and written communication skills. Numeracy skills : taxation calculation - reflected in the content of seminars and final exam. Learning skills : reflected in the use of library and internet activities to support student centred learning. Ability to locate, extract and analyse data from various sources, including acknowledgement and refencing of sources. C+ IT skills : reflected in communicating information for coursework and also in students own student centred learning. Communication skills : reflected in seminar, group discussion and roleplay activity. Also in report writing. Self Management skills : reflected in the management of preparation for coursework.

Module Structure

Activity Total Hours
Assessment (FT) 18.00
Independent Learning (FT) 146.00
Tutorials (FT) 12.00
Lectures (FT) 24.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (Exams Office) 2.00 65.00 35% Final Examination
Coursework 0.00 35.00 35% REPORT, 2000 Words