Alex is a 19 year-old from Birmingham. He just started working as sales assistant at an electronics store downtown. Alex earns £1,400 a month gross. He spends £350 per month on rent, about £100 on utilities and £300 on groceries. Alex has no debt but he’s thinking of going to university in 1 or 2 years’ time to earn a BA in computer sciences. He also would love to do a tour of South America before he starts studying.
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Alex’ store offers the latest smartphone for a special price of £250 to its employees, payable over 1 year. Alex needs a new smartphone and the price is 40% of the regular price. Should he buy?
Alex sees an ad offering the car he wants for £350 per month over 3 years. The regular price of the car is £8,500. Should he go for the offer?
Alex always tries to be careful in spending, but suddenly he gets a credit card bill for £1,200. What should he do?
Note: There can be several correct answers to this question
Alex loses his job as the shop closes due to online competition! What should he do?
Note: There can be several correct answers to this question
Alex is lucky and gets an offer for a higher-paying job as assistant store manager in a fashion store. It’s out of town, though, and he has to commute. It takes 1 hour each way by train and costs £100 per month; a car ride takes about 45 minutes and the car costs £7,000. What should he do?
The new salary is £1,800. Alex decided to move closer to his new job, so he saves on rent as well as transport – smart move! He spends about £250 per month on rent now. Should Alex opt for 10% automatic payroll deduction to be paid into an ISA, assuming everything else remains the same?
Note: There can be several correct answers to this question
How much does Alex have available for discretionary spending?
Alex has been accepted to a prestigious university! He can study computer sciences as he’s always wanted to. But he’ll have to quit his job, and tuition is £15,000 for a 3-year Bachelor’s course. Alex thinks he can get a part-time job to cover his living expenses, and his parents are willing to gift him £3,000 for the tuition. He could cover the balance £12,000 through a government student loan. What should he do?
It’s June and Alex has worked for 12 months in his new job. University starts in September. Alex always wanted to visit South America, especially Peru. He knows he’ll be busy once he starts studying, especially since he also plans to work part-time. He found an all-inclusive, 2-months tour of South America costing £2,500. Can he do it?