Understanding Financial Services

Year Level & Curriculum Alignment

Year 10 – Australian Curriculum (Humanities and Social Sciences: Business and Economics)

Content Description:

• ACHES046: Develop and apply enterprising behaviours and capabilities to suggest ideas for business opportunities and risks in responding to changing consumer needs and wants.
• ACHES044: Explain the roles and responsibilities of participants in the changing Australian and global workplace.

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Lesson Duration

60 Minutes

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Lesson Objectives

By the end of this lesson, students will be able to:

1. Define the financial services industry and identify its main components in Australia.
2. Understand the role and responsibilities of financial advisers, lenders, and organisations in providing financial information and advice.
3. Examine the importance of ethical and responsible financial advice for individuals and community groups.
4. Use problem-solving skills to critically examine case studies of financial advice scenarios.

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Success Criteria

Students should be able to:

• Recognise the significance of the financial services industry for Australians.
• Discuss the social and ethical responsibilities of lenders and advisers.
• Analyse and interpret key financial advice scenarios to identify ethical breaches or best practices.

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Materials Required

• Whiteboard and markers
• Projector or smartboard
• Student device or notebook for activities
• Case study handouts (printed)
• A class set of "Financial Services Industry in Australia: Responsibilities of Lenders & Advisers" (prepared by teacher).

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Lesson Structure

1. Lesson Introduction (10 Minutes)

Objective: Establish the lesson context and spark engagement.

1. Icebreaker Question: "What does money mean to our society beyond just buying things?" (Get students thinking about value, ethics, and trust in financial services.)
2. Short Class Poll: Using a show of hands, ask students:
   • How many of you know what a financial adviser does?
   • How many have heard of bank lending?
3. Discussion Starter: Explain what the financial services industry is, using examples like banks, credit unions, insurance companies, and fintech in Australia. Mention prominent Australian financial institutions like Commonwealth Bank, NAB, ANZ, and Westpac.
4. Display key terms on the board:
   • Financial Adviser
   • Lender
   • Transparency
   • Ethical Responsibility

2. Core Content Delivery (20 Minutes)

Objective: Students develop foundational knowledge of the roles and responsibilities in the financial services industry.

Part A: Explanation of Financial Advice

• Explain that financial advice is guidance provided to individuals or groups regarding managing their finances (e.g., budgeting, investments, retirement).
• Discuss some key organisations in Australia that provide financial advice:
  • Banks
  • Independent financial planners
  • Non-profits like the Salvation Army assisting vulnerable groups

Part B: Responsibilities of Financial Advisers & Lenders

• Use the whiteboard to visually depict key responsibilities:
  1. Transparency: Providing clear and honest advice.
  2. Ethical Standards: Acting in the best interest of clients.
  3. Legal Obligations: Complying with Australian financial laws.
• Focus on the financial system reforms in Australia, like those stemming from the 2018 Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry.

Interactive Example:

• Present a scenario where a financial adviser promotes a high-fee, risky product to a low-income family. Ask students: What went wrong here? Discuss the ethical violation of prioritising profits over clients' needs.

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3. Case Studies Activity (20 Minutes)

Objective: Students apply their understanding to examine real-world scenarios.

Instructions:

1. Divide the class into four groups of 5 students.

2. Hand out pre-prepared case studies:

   • Group 1: A lender offering a predatory loan to a small-town community group.
   • Group 2: A financial adviser mismanaging client investments with a conflict of interest.
   • Group 3: A bank successfully helping a non-profit secure funding for a youth program.
   • Group 4: A fintech company promoting a budgeting app to young people.

3. Task: Groups must answer the following questions for their case study:

   • Who are the stakeholders involved?
   • Is the advice or lending ethical? Why or why not?
   • What could have been done better (if anything)?

Wrap-Up Discussion:

• Each group shares their findings in a 2-minute summary.
• Highlight key takeaways and reinforce the idea of responsibility in financial services.

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4. Conclusion & Reflection (10 Minutes)

Objective: Consolidate lesson learning and foster deeper engagement.

1. Exit Ticket Question:

   • Write down one responsibility you think is most important for financial advisers or lenders and explain why.

2. Final Thought:

   • Reinforce the critical role of trust between Australians and the financial industry in ensuring societal well-being.

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Assessment & Extensions

Assessment:

• Review group activity outcomes and exit tickets for understanding.
• Optional follow-up homework: Students research one Australian regulation governing financial advice or lending and write 100 words on its importance.

Extension Ideas:

• For advanced learners: Assign a deep dive task on the Royal Commission and its impact on Australian financial organisations.

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Teacher Notes

• Students will benefit from ongoing references to real-world Australian examples throughout the lesson.
• Consider conducting a follow-up session to explore budgeting tools or workshops by Australian non-profits on financial literacy.