Group+2+-+Problem+solving+and+decision+making


 * __HOW DO PROBLEM SOLVING AND DECISION MAKING SKILLS HELP YOUNG PEOPLE IN MANAGING THEIR FINANCES?__**

Lucas has just left home and wants a widescreen television. He has been investigating various options for the model he wants, which costs $4 000. The sales assistant suggests that Lucas purchases the TV using the store's credit over two years, paying ‘only’ $250 a month. Alternatively he could rent the TV for two years paying $120 a month, with the option of buying it at the end of that period for $1 500. Lucas is also thinking of using his credit card, but the interest rate is 16% per annum.

__What are the likely problems Lucas could experience if he takes up the offer using store credit?__

- __Explain at least 3 strategies that could minimise the risk of financial problems for Lucas.__