Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 1
Topic 2 - Introduction
In this topic students will research the implications of moving abroad to either Chicago or Zaragoza for a one-year placement before deciding which location they would prefer. By the end of the unit they will have prepared for a meeting with a relocation adviser. This topic involves a significant degree of independent research and on-going internet access is recommended.
Resources
Resource 1: Pros and cons
Resource 2: Health cover
Resource 3: Having fun
Resource 4: Visiting home
Talking Heads Videos:
Relocating abroad Moving money abroad
Curriculum links
Business Administration and Finance Diploma Level 3
AQA Unit 3.8: Planning for my career and financial success LO1 & LO4
OCR Unit F282: Managing personal finances LO1 (1.2, 1.3), LO2 (2.1, 2.2), LO3 (3.1, 3.2, 3.3) LO4 (4.1)
Edexcel Unit 3: Personal Finance and Financial Services LO1 (1.2, 1.4), LO2 (2.1, 2.2), LO4 (4.2)
EDI Unit 4: Planning for Personal Financial Planning Stability LO1 (1.2, 1.3), LO3 (3.2, 3.3)
BTEC:
Level 3 National Award in Personal and Business Finance Unit 1: Financial Services for Individuals LO1 & LO3
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 2
Present students with the following scenario:
You’re now renting a one-bedroom flat in the E11 area of London and currently earn £22,000 per year, which is due to rise to £23,500 at the end of the year. You’ve been offered the chance to transfer to either Chicago in the USA or Zaragoza in Spain for a one-year placement and you need to choose which city you would prefer. You would earn the equivalent salary in local currency while you are abroad and pay local taxes – your employer will arrange for any visas that are required and should be able to help out with some of the logistics, but there will still be a lot of work to do to prepare. Better get planning!
If you can arrange for a relocation adviser from a local company to visit as part of your employer engagement, that would be ideal, especially for the final activity.
The Talking Heads Video: Relocating abroad offers one business view of relocation support, success factors in relocating and personal finance in another country.
Pros and cons
Hand out copies of Resource 1: Pros and cons and get students to discuss issues that they would need to consider in small groups and complete the sheet either individually or in pairs.
Cost of living
Refer students back to the budget that they completed previously in Topic 1: Capital issues. They want to be able to maintain their current standard of living while they are abroad and will need to research the exchange rates and cost of living in both of the cities.
Depending on the time available and the ability of the group you may also want to explore issues of taxation and National Insurance.
You could ask students to complete a budget similar to the one done previously showing approximate costs in the two cities.
You might want to suggest some or all of the useful web links as useful places to start.
Useful web links
§ Information about working abroad:
www.direct.gov.uk/en/BritonsLivingAbroad/EducationAndJobs/DG_4014676 § Universal Currency Convertor:
www.xe.com/ucc/
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 3 § Prices and earnings around the globe (2009):
www.easyexpat.com/images/UBS_PL.pdf (Please note that clicking this link may show a safety warning as it is a document rather than a webpage.)
Chicago
§ Information about taxation in the US, including income tax www.wikipedia.org/wiki/Income_tax_in_the_United_States § US tax calculator (Chicago is in Illinois):
www.paycheckcity.com/copayday/netpaycalculator.asp § Expat guides to Chicago:
www.easyexpat.com/en/chicago.htm
www.expatarrivals.com/the-usa/chicago/moving-to-chicago
Zaragoza
§ European tax information:
www.ec.europa.eu/youreurope/citizens/work/jobseeker/taxes/index_en.htm?profile =0
§ Information about taxation in Spain, including income tax:
hwww.spainexpat.com/spain/information/taxes_for_expatriates_in_spain/ § Spanish wage tax calculator:
www.calculateyournetsalary.com/calculate-net-salary-in-spain.html § Expat guides to Zaragoza/Spain
www.expatforum.com/spain/zaragoza-city-guide.html www.expat-blog.com/en/destination/europe/spain/ www.travel-library.com/europe/spain/zaragoza/
Banking abroad
Students will need to ensure that they have suitable bank accounts, credit cards etc. to use during their time abroad.
Explain that they will need to research any fees involved in using UK debit and credit cards abroad. Do all banks charge the same? Which is the best deal? What are the pros and cons of taking a pre-paid card?
Taking money abroad
You may also want them to explore the exchange rates for cash withdrawals from ATMs abroad and at Bureau de Change and Cambio kiosks, plus any commission charges.
They want to open a new bank account abroad. Is it best to do this online before they go, or in person once they have arrived?
You might want to suggest some or all of the useful web links as useful places to start.
Level 3: Topic 2 – Moving Abroad
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 4
Useful web links
§ Travel money information:
www.moneysupermarket.com/travel-money/?Source=MS www.moneysavingexpert.com/travel/cheap-travel-money § Opening a bank account in Spain:
www.spainexchange.com/student_info/bank_account_spain.php www.spain.angloinfo.com/countries/spain/banking.asp
Health cover
Explain that few countries have a universal National Health system similar to that in the UK and that the level of automatic protection varies from country to country.
Working in pairs or small groups, get students to explore the generic health cover that exists in Spain and the US and decide whether these would be sufficient for their needs. Their employer would be responsible for arranging any additional insurance and they should draw up a list of items that they need to check are covered for each
country. They can use Resource 2: Health cover to help them record their findings. You might want to suggest some or all of the useful web links as useful places to start.
Useful web links
§ Information about health cover in Spain: www.justlanded.com/english/Spain/Health § Information about health cover in the US:
www.emigrationexpert.co.uk/healthcare-us.html
Having fun
One of the reasons for working abroad is to explore another culture and have fun! Students can work in pairs to explore what activities and experiences the two cities offer. Ask them to draw up a list of their top five ‘must-sees’. They can use Resource 3: Having fun to help them record their ideas.
Students could look in the library for guide books to the two cities or countries. You might want to suggest some or all of the useful web links as useful places to start.
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 5
Useful web links
§ Expat guides to Zaragoza/Spain: www.spainexpat.com/
www.community.justlanded.com/en/Spain_Aragon_Zaragoza § Expat guides to Chicago:
www.easyexpat.com/en/chicago.htm
www.expatarrivals.com/the-usa/chicago/moving-to-chicago § Chicago tourist information:
www.explorechicago.org/city/en.html § Zaragoza tourist information:
www.zaragoza.es/ciudad/turismo/default_en.htm
Visiting home
Explain that employers often pay for one trip home per year for staff working abroad. How often do students think that they would want to come back to the UK during their year?
How much do return flights cost to/from Zaragoza and Chicago? Is it cheaper to book them through an agent or directly with the airline?
Students should explore which airports they can get a flight to/from and consider the practicality of transport to/from the airports at both ends of the journey. Resource 4: Visiting home can be used to record their findings.
You might want to suggest some or all of the useful web links as useful places to start.
Useful web links
Prices for a range of airlines:
www.cheapflights.co.uk www.skyscanner.net
Airlines:
British Airways: www.britishairways.com/travel/globalgateway.jsp/global/public/en_ American Airlines: www.americanairlines.co.uk
United Airlines: www.united.com Iberia: www.iberia.com/gb/
Spanair: www.spanair.com/web/en-gb/
Level 3: Topic 2 – Moving Abroad
Level 3: Topic 2 – Moving Abroad
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 6 If students constructed a budget earlier in this topic for their time abroad you could refer
back to this and explore how many trips are likely to be affordable.
Relocation adviser
At this point students have to decide which of the two cities they would prefer their placement to be in. They should prepare a presentation explaining the reasons for their choice and draw up a list of questions that they would want to explore further with their company’s relocation adviser. (If you are able to arrange for a relocation adviser from a local company to visit, this would be really useful here.)
Money Works: It’s your business | Level 3: Topic 2 – Moving Abroad © pfeg 2011 7
Personal, Learning and Thinking Skills (PLTS):
Throughout this topic there are opportunities for students to provide evidence towards the following:
§ Independent explorers § Critical thinkers § Effective participants
Functional Skills:
Within this topic students may be able to provide evidence towards the following functional skill standards at level 2:
English:
§ Speaking, Listening and Communication: Make a range of contributions to discussions in a range of contexts, including those that are unfamiliar and make effective presentations.
§ Reading: Select, read, understand and compare texts and use them to gather information, ideas, arguments and opinions.
§ Writing: Write a range of texts, including extended written documents, communicating information, ideas and opinions effectively and persuasively.
ICT:
§ Finding and selecting information: Use appropriate search techniques to locate and select relevant information.
§ Finding and selecting information: Select information from a variety of sources to meet requirements of a complex task.
§ Developing, presenting and communicating information: Combine and present information in ways that are fit for purpose and audience.
Mathematics:
§ Representing: Identify the situation or problems and identify the mathematical methods needed to solve them.
§ Analysing: Use appropriate checking procedures and evaluate their effectiveness at each stage.
§ Interpreting: Draw conclusions and provide mathematical justifications.
