LNF Cymru Literacy and numeracy for Wales

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Skills for Work: Business Finance

Business Finance is a Pearson Skills for Work unit in which learners learn how small businesses and other institutions raise money, manage costs, save money and use budgets and financial plans to stay viable, applied to their own setting or an enterprise activity. It is one 10 hour unit that learners combine with others into a Pearson Skills for Life or Skills for Work Award, Certificate or Diploma, assessed internally by the centre. Numeracy sits in income and expenditure, budgeting, comparing sources of finance and cost savings, and a simple financial plan at Level 2. Literacy sits in describing and explaining finance choices and their impact, and in group discussion.

Awarding body
Pearson
Level
Entry Level 1 to Level 2
Guided learning hours
10
First taught
September 2027
Amount of literacy work
Medium
Amount of numeracy work
Medium
Specification
Open the specification
How this unit is assessed
  • Entry Level (Entry 1, Entry 2, Entry 3): One assessment criterion at each of Entry 1, Entry 2 and Entry 3, moving from stating how businesses or other institutions earn and manage money, to outlining basic business finance concepts, to identifying sources of income, cost-saving measures and how a budget helps a business stay viable. Evidence is internally assessed by the centre, which sets and marks the assessment, and quality assured by Pearson through standards verification. 10 guided learning hours. Graded Pass or Fail.
  • Level 1 and Level 2: One assessment criterion at each of Level 1 and Level 2: describing how a small business or other institution manages money and the benefits and drawbacks of financial planning and budgets, then creating a simple financial plan showing how to generate income and spend effectively so the business is viable. Evidence is internally assessed by the centre, which sets and marks the assessment, and quality assured by Pearson through standards verification. 10 guided learning hours. Graded Pass or Fail.

The literacy and numeracy skills in this qualification

  1. Telling income and expenditure apart

    Assessed: In coursework (non-examination assessment, NEA)

    Entry 1 learners state ways businesses earn money and list simple costs, and Entry 2 learners outline the difference between income and expenditure and apply it to a familiar scenario such as personal spending. Learners record money coming in and going out, which is required by the assessment criteria.

    Numeracy: Financial literacy, Calculation

    Getting pupils ready

    Year 7
    Pupils sort cards showing money from a school fair into income and expenditure columns and add up each column.
    Year 8
    Pupils keep a one week record of their own money in and money out and work out the balance at the end of the week.
    Year 9
    Pupils record a month of income and costs for a small cafe from a case study, using a written method for decimals, and explain what the totals show.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criteria Entry 1 and Entry 2, page 44; Essential information for assessment decisions, Entry 1 and Entry 2, page 45

    “outline the difference between income and expenditure for a business or other institution”
    Progression step 3

    • I can plan and track money and savings by keeping accurate records.

    • I can add and subtract totals less than £100 using correct notation, e.g. £28.18 + £33.45.

    Progression step 4

    • I can use efficient written methods to add and subtract numbers and decimals of any size, including a mixture of large and small numbers with differing numbers of decimal places.

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

  2. Using a budget to keep a business viable

    Assessed: In coursework (non-examination assessment, NEA)

    Entry 1 learners show what a budget is, Entry 2 and Entry 3 learners explain why a budget helps and give budgeting tips, and Level 1 learners use simple financial planning and a budget to show the business or institution could remain viable. This is required by the assessment criteria.

    Numeracy: Financial literacy, Strategic competence

    Getting pupils ready

    Year 7
    Pupils are given a £50 budget for a class party and choose items from a price list without going over it.
    Year 8
    Pupils plan a budget for a school club for a term, list costs against the money available and show how much is left.
    Year 9
    Pupils build a budget for a small enterprise, show in ordered steps whether income covers costs, and suggest changes if it does not.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criteria Entry 1 to Level 1, page 44; Essential information for assessment decisions, Entry 1 to Level 1, page 45

    “can use simple financial planning and a budget to show the business or institution could remain viable”
    Progression step 3

    • I can realise that budgeting is important.

    • I can manage money, compare costs from different retailers and determine what can be bought within a given budget.

    Progression step 4

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

    • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

  3. Creating a simple financial plan

    Assessed: In coursework (non-examination assessment, NEA)

    Level 2 learners create a simple financial plan for a small business or other institution with budgeting tips, ways to raise finance and ways to manage costs, and show how it contributes to viability. Learners organise income and cost figures into a plan and justify their choices, which is required by the Level 2 assessment criterion.

    Numeracy: Strategic competence, Logical reasoning

    Getting pupils ready

    Year 7
    Pupils list what a lemonade stall needs to buy, find the price of each item and total the start up cost.
    Year 8
    Pupils plan the money for a charity event in steps: what they need, what it costs, how they will raise it and what they will sell.
    Year 9
    Pupils write a simple financial plan for a small business showing expected income and costs, how they would raise start up money, and why their plan keeps the business viable.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criterion Level 2, page 44; Essential information for assessment decisions, Level 2, page 46

    “outlining how they could raise finance and effectively manage costs”
    Progression step 3

    • I can identify, measure or obtain required information to complete the task.

    • I can prioritise and organise the relevant steps needed to complete the task or reach a solution.

    Progression step 4

    • I can recognise, model and apply the underlying mathematical structures and ideas within problems, in order to formulate and solve them.

    • I can justify my procedures, predictions and conjectures.

  4. Comparing sources of finance

    Assessed: In coursework (non-examination assessment, NEA)

    Entry 2 learners list simple ways of generating income such as small loans, Entry 3 learners compare methods such as grants and loans and suggest at least two suitable sources with reasons, and Level 1 learners give benefits and drawbacks of options such as bank loans and crowdfunding for a given scenario. This is required by the assessment criteria.

    Numeracy: Strategic competence, Logical reasoning, Financial literacy

    Getting pupils ready

    Year 7
    Pupils compare borrowing £20 from a friend with saving pocket money for four weeks and say which is better for buying a game and why.
    Year 8
    Pupils compare a grant and a loan for a school club, noting that a loan must be paid back, and choose the better option with a reason.
    Year 9
    Pupils compare a bank loan, a grant and crowdfunding for a start up, setting out the benefits and drawbacks of each and justifying a recommendation.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criteria Entry 3 and Level 1, page 44; Essential information for assessment decisions, Entry 2 to Level 1, page 45

    “identify the different methods of raising finance/sources of income for a small business”
    Progression step 3

    • I can identify what further information might be required and select what information is most appropriate.

    • I can justify my procedures and predictions.

    Progression step 4

    • I can appreciate the basic principles of budgeting, saving (including understanding compound interest) and borrowing.

    • I can justify my procedures, predictions and conjectures.

  5. Suggesting cost-saving measures

    Assessed: In coursework (non-examination assessment, NEA)

    Entry 2 learners give examples of cost-saving measures such as turning off lights, Entry 3 learners suggest at least two for a given scenario with reasons, Level 1 learners consider cost-saving strategies, and Level 2 learners explain their potential impact on the business. This is required by the assessment criteria.

    Numeracy: Financial literacy, Conceptual understanding

    Getting pupils ready

    Year 7
    Pupils compare the price of the same pack of paper cups from two shops and work out how much the cheaper one saves.
    Year 8
    Pupils find three cost savings for a school tuck shop, such as buying in bulk, and work out how much each one saves per month.
    Year 9
    Pupils work out the saving from a bulk buy discount and a cheaper supplier for a small business and decide whether the saving is worth any drop in quality.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criteria Entry 3 to Level 2, page 44; Essential information for assessment decisions, Entry 2 to Level 2, pages 45 to 46

    “give examples of cost-saving measures, e.g. turning off lights.”
    Progression step 3

    • I can make comparisons between prices and understand which is best value for money.

    • I can manage money, compare costs from different retailers and determine what can be bought within a given budget.

    Progression step 4

    • I can make informed decisions relating to discounts and special offers.

    • I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.

  6. Explaining finance choices and their impact

    Assessed: In coursework (non-examination assessment, NEA)

    Learners state, outline, identify, describe and at Level 2 explain business finance ideas, including chosen sources of financial support, cost-saving strategies and their potential impact on the business. This needs subject vocabulary such as income, expenditure and viability and organised explanation, and is required by the assessment criteria.

    Literacy: Vocabulary, spelling, grammar, Planning and organising for different purposes, audiences and context

    Getting pupils ready

    Year 7
    Pupils write three sentences explaining what income, costs and a budget mean, using an example from a school fair.
    Year 8
    Pupils write a short explanation of why a business might choose a loan rather than a grant, using linking words such as because and however.
    Year 9
    Pupils write a structured explanation of two cost-saving strategies for a small business and their likely impact, using terms such as expenditure and viability.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, assessment criteria Entry 1 to Level 2, page 44; Essential information for assessment decisions, Level 2, page 46

    “They can explain chosen sources of financial support and cost-saving strategies and their potential impact”
    Progression step 3

    • I can use varied, appropriate and precise vocabulary including area of learning and experience/discipline-specific words for different purposes.

    • I can use and adapt different structures within my writing, e.g. reporting an event, investigation or experiment.

    Progression step 4

    • I can use summary, discussion of issues, detailed explanations and logic when covering a topic.

    • I have experienced a range of area of learning and experience/discipline-specific and general academic vocabulary, and can use them in my own communication.

  7. Discussing finance problems in groups

    Assessed: Taught, but not assessed

    The support guidance expects Entry learners to contribute to group discussions and problem solving about business finance, Level 1 learners to take a leading role, and Level 2 learners to lead and facilitate discussions. Because learners must meet the criteria independently, group discussion supports teaching but is not itself assessed.

    Literacy: Collaborative talk, Listening as part of collaborative talk

    Getting pupils ready

    Year 7
    Pupils discuss in groups how a school club could raise £100, with each pupil adding one idea and the group choosing the best two.
    Year 8
    Pupils take roles such as chair and note taker to discuss how a tuck shop could cut its costs, then report their agreed plan.
    Year 9
    Pupils lead a group discussion on funding a small business, weigh up options raised by others and reach an agreed recommendation.
    Show the specification wording and the LNF statements

    Where it is in the specification: Unit SfW 8, Levels of supervision and support before and during assessment, page 46; Section 4, Assessment of units, page 9

    “They will contribute ideas and solutions to group problem-solving activities with appropriate guidance”
    Progression step 3

    • I can contribute to group discussion in different roles, taking responsibility for completing the task well.

    • I can listen to and respond to others with questions and comments which focus on reasons, implications and next steps.

    Progression step 4

    • I can undertake a range of responsibilities to structure and develop group talk, including in more formal situations.

    • I can recognise a range of options for action and reach agreement to achieve the aims of the group.

Good to know

Links with other qualifications

The WJEC Skills for Work unit Business Finance is 20 hours, requires an enterprise activity and adds profit and loss, cash flow forecasts and break-even, so it carries more numeracy than the 10 hour Pearson unit, which centres on income, costs, cost saving, budgets and a simple financial plan. Budgeting and comparing sources of finance link to WJEC GCSE Business and to the financial content of GCSE Mathematics and Numeracy, the budgeting work to the Skills for Life unit Financial literacy, and planning finance for an enterprise to the WJEC Skills for Work unit Enterprise venture. Explaining finance choices in writing builds on WJEC GCSE English Language and Literature.

Source: Pearson Entry Level 1 to Level 2 Skills for Work Award, Certificate and Diploma Qualifications specification, Issue 1, August 2026, Unit SfW 8: Business finance.