3. Reflect on the knowledge you have gained from the Financial Literacy unit in the UFSS1504 module.

Question

3.1. Name TWO common financial mistakes that students are likely to make during their university studies. – 2 marks
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3.2. Explain two strategies for avoiding or resolving each of the common financial mistakes identified in question 3.1. – 2 marks.
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3.3. a) Define the term “asset” and provide an example of an asset within the context of a university environment. -2 marks
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b) Define the term “liability” and provide an example of an asset within the context of a university environment. – 2 marks
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Answer 1

3.1. Two common financial mistakes that students are likely to make during their university studies are overspending and not creating a budget.

3.2. To avoid overspending, students can create a budget outlining their income and expenses, track their spending, avoid unnecessary purchases, and prioritize their needs over wants. To avoid not creating a budget, students can use budgeting apps or templates, seek financial advice from experts, set financial goals, and regularly review and adjust their budget as needed.

3.3. a) An asset is something of value owned by an individual or organization that can be converted into cash. An example of an asset within the context of a university environment could be a laptop or a textbook.

b) A liability is a financial obligation or debt that an individual or organization owes to another party. An example of a liability within the context of a university environment could be a student loan or credit card debt.