Skills for Work: Business Finance
Business finance is a Skills for Work unit about how businesses get money, spend it, invest it and save costs, applied in a real enterprise activity such as a tuck shop, cake sale or fundraising stall. It is one 20 hour unit that learners combine with others into a Skills for Work, or Skills for Life and Work, Award, Certificate or Diploma, from Entry 1 to Level 2. Numeracy is central: counting and adding money at Entry Level, then budgets, records of income and expenditure, profit and loss, percentages, cash flow and break-even at Levels 1 and 2. Literacy sits in explaining and evaluating reasons and justifying money decisions.
- Awarding body
- WJEC
- Level
- Entry Level 1 to Level 2
- Guided learning hours
- 20
- First taught
- September 2027
- Amount of literacy work
- Medium
- Amount of numeracy work
- High
How this unit is assessed
- Entry Level (Entry 1, Entry 2, Entry 3): Four learning outcomes with assessment criteria at Entry 1, Entry 2 and Entry 3 (unit codes S653E1, S653E2, S653E3). Evidence goes in a portfolio, internally assessed by the centre and externally quality assured by WJEC. 20 guided learning hours. Learners must take part in an enterprise activity.
- Level 1 and Level 2: Four learning outcomes with assessment criteria at Level 1 and Level 2 (unit codes S653L1, S653L2). Evidence goes in a portfolio, internally assessed by the centre and externally quality assured by WJEC. 20 guided learning hours. Learners must take part in an enterprise activity.
The literacy and numeracy skills in this qualification
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Planning a budget and keeping within it
Entry 3 learners show how to keep spending within a set budget, Level 1 learners produce a budget or plan for spending and income, and Level 2 learners plan and monitor income and spending in their enterprise activity. The amplification sets out the budget plan: items, estimated costs, total planned expenditure, expected income and remaining balance or projected profit.
Numeracy: Financial literacy, Strategic competence
Getting pupils ready
- Year 7
- Pupils are given £15 and a price list and choose stationery for a class box, adding up as they go so they do not overspend.
- Year 8
- Pupils plan a cake sale budget listing ingredients, quantities and prices, total the planned spending and work out the remaining balance from a £30 float.
- Year 9
- Pupils write a full budget for a school stall with estimated costs, expected income from a sales target and projected profit, then update it when one supplier's price rises.
Show the specification wording and the LNF statements
Where it is in the specification: Entry Level, learning outcome 4, assessment criterion E3 4.4, page 6; Level 1 and Level 2, learning outcome 4, assessment criteria L1 4.1 and L2 4.1, page 8; Amplification of LO4, page 11
“Produce a budget or plan for spending and income for a project or enterprise activity”
Progression step 3
I can manage money, compare costs from different retailers and determine what can be bought within a given budget.
I can realise that budgeting is important.
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.
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Recording income and expenditure accurately
Entry 2 learners suggest how income and costs can be recorded, Entry 3 learners produce a record of income and costs, and Level 1 learners record income and expenditure in their activity. The amplification lists receipts, tables, tallies and bank statements as ways to track money.
Numeracy: Financial literacy, Representing data, Calculation, Communicating with symbols
Getting pupils ready
- Year 7
- Pupils keep a tally chart of tuck shop sales for one break time and turn it into money taken, writing amounts in pounds and pence.
- Year 8
- Pupils record a week of stall income and spending from receipts in a two column table and add each column to two decimal places.
- Year 9
- Pupils keep a running balance ledger for a fundraising event, checking each total against the cash count and finding the cause of any difference.
Show the specification wording and the LNF statements
Where it is in the specification: Entry Level, learning outcome 4, assessment criteria E2 4.3 and E3 4.3, page 6; Level 1 and Level 2, assessment criterion L1 4.3, page 8; Amplification of LO3, page 11
“Produce a record of income and costs for an enterprise activity”
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.
I can represent data using:
- lists, tally charts, tables, diagrams and frequency tables
- bar charts, grouped data charts, line graphs and conversion graphs
- pictograms where one symbol represents more than one unit using a key
- Venn and Carroll diagrams.
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 refine methods of recording calculations.
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Working out profit and loss
The unit overview says learners represent amounts, compare costs and income and, at Level 1 and Level 2, calculate income, costs, profit and loss. No single criterion names profit, but the budget plan includes projected profit and Level 2 criterion 3.1 asks how controlling costs improves profitability, so the calculations sit inside the assessed budget and review work.
Numeracy: Financial literacy, Calculation, Conceptual understanding
Getting pupils ready
- Year 7
- Pupils find the profit on a batch of 12 cupcakes that cost £4.80 to make and sell for 50p each.
- Year 8
- Pupils work out the cost per item of handmade bookmarks from the price of card, ribbon and packaging, then the profit at three different selling prices.
- Year 9
- Pupils compare planned and actual profit for a class enterprise, decide whether it made a profit or a loss on each product, and explain which costs made the difference.
Show the specification wording and the LNF statements
Where it is in the specification: Unit overview, Curriculum for Wales, pages 3 and 4; Amplification of LO4, page 11; Level 1 and Level 2, assessment criterion L2 3.1, page 7
“work out simple relationships such as profit and loss”
Progression step 3
I can use profit and loss in buying and selling calculations.
I can add and subtract numbers using whole numbers and decimals.
Progression step 4
I can use the four operations and the connections between them, e.g. apply division as the inverse of multiplication.
I can interpret answers within the context of the problem and consider whether answers, including calculator, analogue and digital displays, are sensible.
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Cash flow forecasting and break-even
The Level 1 and Level 2 amplification covers cash flow forecasting and break-even analysis, and a cash flow table or break-even calculation is listed as evidence where applicable. Level 2 criterion 1.3 asks learners to explain how income and expenditure affect cash flow, but no criterion requires a forecast or break-even calculation.
Numeracy: Calculation, Interpreting data, Strategic competence
Getting pupils ready
- Year 7
- Pupils work out how many 50p drinks a stall must sell to cover a £6 table fee.
- Year 8
- Pupils complete a four week cash flow table for a car wash with money in, money out and closing balance, and say when the cash runs low.
- Year 9
- Pupils calculate break-even for a stall from fixed costs, cost per item and price, draw the cost and revenue lines on a graph, and check the answer matches.
Show the specification wording and the LNF statements
Where it is in the specification: Amplification of LO3, page 11; Sources of evidence, page 13; Level 1 and Level 2, assessment criterion L2 1.3, page 7
“break-even analysis: understanding when a business covers its costs”
Progression step 3
I can divide 3-digit numbers by a 2-digit number.
I can extract and interpret information from an increasing range of diagrams, timetables and graphs (including pie charts).
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 interpret mathematical information; drawing inferences from graphs, diagrams and data, including discussion on limitations of data.
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Percentages and best value comparisons
The unit overview says Level 1 and Level 2 learners work with percentages, totals and simple forecasts, and suggested activities include comparing prices online and in store for best value and, at Entry Level, costing per item with coins or calculators. No criterion names percentages, so this numeracy supports the assessed spending decisions rather than being assessed on its own.
Numeracy: Financial literacy, Calculation
Getting pupils ready
- Year 7
- Pupils compare the price per 100 g of two packs of flour and decide which is better value.
- Year 8
- Pupils work out a 20% discount on stall supplies and decide whether a bulk buy offer or the discount saves more money.
- Year 9
- Pupils find the percentage profit on each product sold at a school event and the percentage rise in costs if ingredient prices go up.
Show the specification wording and the LNF statements
Where it is in the specification: Unit overview, Curriculum for Wales, page 4; Suggested activities, page 12
“They will work with percentages, totals, and simple forecasts”
Progression step 3
I can make comparisons between prices and understand which is best value for money.
I can calculate a percentage, fraction and decimal of any quantity with a calculator where appropriate.
Progression step 4
I can make informed decisions relating to discounts and special offers.
I can express one quantity as a percentage of another.
I can calculate a percentage increase or decrease.
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Using financial information to decide and review
Level 1 learners use financial information to decide how to spend money, Level 2 learners make and justify spending decisions and review the impact of financial decisions on the success of the activity, and Level 2 learners analyse the benefits and risks of investment options. The amplification adds comparing planned and actual outcomes and funding conditions such as repayment terms and interest rates.
Numeracy: Interpreting data, Logical reasoning, Financial literacy
Getting pupils ready
- Year 7
- Pupils use last term's tuck shop sales table to decide which two snacks to restock and give one reason using the numbers.
- Year 8
- Pupils compare buying or renting a gazebo for three school events using the costs, and justify their choice with a calculation.
- Year 9
- Pupils compare a £200 loan with interest against sponsorship for a school enterprise, then after the event compare planned with actual figures and judge which decisions helped most.
Show the specification wording and the LNF statements
Where it is in the specification: Level 1 and Level 2, learning outcome 4, assessment criteria L1 4.2, L2 4.2 and L2 4.3, page 8; learning outcome 2, assessment criterion L2 2.3, page 7; Amplification of LO1 and LO4, pages 10 and 11
“Use financial information to make and justify decisions about expenditure in a project or enterprise activity”
Progression step 3
I can draw conclusions from data and recognise that some conclusions may be misleading or uncertain.
I can justify my procedures and predictions.
Progression step 4
I can justify my procedures, predictions and conjectures.
I can understand the risks involved in different ways of saving and investing.
I can carry out calculations relating to VAT, saving and borrowing.
Progression step 5
I can justify my procedures, predictions and conjectures.
I can draw conclusions from data and recognise that some conclusions may be misleading or uncertain.
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Explaining and analysing how businesses use money
Entry learners give and state ways a business gets, spends and saves money, Level 1 learners explain why each type of income, spending and investment matters, and Level 2 learners classify, analyse and evaluate investment and cost saving strategies. Evidence may be spoken or written, using vocabulary such as income, expenditure, investment and cash flow.
Literacy: Vocabulary, spelling, grammar, Clarity and vocabulary, Planning and organising for different purposes, audiences and context
Getting pupils ready
- Year 7
- Pupils sort cards into ways a shop gets money and ways it spends money, then write a sentence on each using the words income and expenditure.
- Year 8
- Pupils write a short paragraph explaining why a café invests in a new coffee machine, using because and so that to link cause and effect.
- Year 9
- Pupils write a balanced answer weighing up two ways a local business could cut costs, ending with a judgement on which works better.
Show the specification wording and the LNF statements
Where it is in the specification: Entry Level, learning outcomes 1 to 3, page 5; Level 1 and Level 2, learning outcomes 1 to 3, assessment criteria L1 1.2, L2 2.3, L2 3.1 and L2 3.2, page 7
“Evaluate strategies businesses could use to reduce costs and achieve savings effectively”
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 express issues and ideas clearly using area of learning and experience/discipline-specific vocabulary and examples.
I can use and adapt different structures within my writing, e.g. reporting an event, investigation or experiment.
Progression step 4
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.
I can use summary, discussion of issues, detailed explanations and logic when covering a topic.
I can adapt my writing style, choosing and using the best structures for different contexts and purposes, e.g. to successfully describe, explain, persuade, discuss.
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Discussing and justifying money decisions
Entry 2 learners contribute ideas about how to raise and spend money in the enterprise activity, and Level 2 learners make and justify spending decisions. Suggested activities include group debates on finance options and pitching a finance decision to investors, and teacher observation notes of discussion are listed as evidence.
Literacy: Collaborative talk, Listening as part of collaborative talk, Questioning
Getting pupils ready
- Year 7
- Pupils take turns in a group to suggest one way to raise money for a class charity and agree the top idea.
- Year 8
- Pupils hold a short debate on buying or renting equipment for a stall, responding to the other side's points before a vote.
- Year 9
- Pupils pitch a spending decision for an enterprise to a panel of teachers acting as investors and answer their questions with reasons and figures.
Show the specification wording and the LNF statements
Where it is in the specification: Entry Level, learning outcome 4, assessment criteria E2 4.1 and E3 4.1, page 6; Level 1 and Level 2, assessment criterion L2 4.2, page 8; Suggested activities, page 12; Sources of evidence, page 13
“Contribute ideas about how to raise and spend money in an enterprise activity”
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 recognise a range of options for action and reach agreement to achieve the aims of the group.
I can sustain a convincing point of view, anticipating and responding to other perspectives.
Good to know
- Unit codes are S653E1, S653E2, S653E3, S653L1 and S653L2, and the unit is 20 GLH in the Skills for Work suite (Unit overview, page 3).
- An enterprise activity is compulsory: "To achieve this unit, learners must take part in an enterprise activity." (Unit overview, page 3).
- The numeracy is set out level by level: Entry Level learners practise "recognising, counting and comparing amounts of money", and Level 1 and 2 learners "calculate income, costs, profit, loss, and break-even points" (Unit overview, page 4).
- Evidence may be "verbal, written, practical or visual", and judgements should not focus on "spelling or presentation unless specifically assessed" (Sources of evidence, page 13).
- The portfolio "is not limited to paper-based materials" and can include "photographic evidence" and "video/audio recordings" (Section 4.1, page 18).
- Suggested assessment tasks "are not mandatory"; teachers may use, adapt or replace them (Section 4.1, page 18).
- AI misuse is malpractice, including "Using AI to complete parts of the assessment so that the work does not reflect the learner's own work, analysis, evaluation or calculations." Use of AI tools must be acknowledged (Section 4.6, page 21).
- "Assessment of this unit should not require any specific resources" (Resources required for assessment, page 15).
Links with other qualifications
The pack names Enterprise venture, Financial literacy, Teamwork and Using IT in the workplace as closely related Skills Suite units, with Ethical choices for responsible business decisions, and points to the VCSE and Foundation qualifications in Retail and Customer Service and to GCSE Business. GCSE Business shares sources of finance, costs, profit, cash flow and break-even, and GCSE Mathematics and Numeracy covers the same money calculations, percentages and reading graphs. Explaining and evaluating business decisions in writing and speech supports GCSE English Language and Literature.
Source: WJEC Business finance unit delivery and assessment pack, read with the WJEC Entry 1 to Level 2 Skills for Life and Skills for Work specification, approved by Qualifications Wales, teaching from September 2027 (© WJEC CBAC Ltd 2026).