Needs vs. Wants: The First Money Lesson
What Is a Need?
A need is something essential for survival. You cannot live without it. Think about the things your body and well-being absolutely require every single day.
Here are the basics:
- Food: Not fancy restaurant meals, but basic food to give you energy and keep you healthy.
- Water: To drink and stay hydrated.
- Shelter: A safe place to live, like a house or apartment, that keeps you warm and dry.
- Clothing: Simple clothes to protect your body from the weather.
- Basic Medical Care: When you are sick or hurt and need to see a doctor.
What Is a Want?
A want is something that would be nice to have, but you do not need it to survive. Life is more fun with wants, but they are optional.
Here are some examples of wants:
- Toys and Games: The newest video game, a new doll, or a shiny new bike.
- Treats: Ice cream, candy, or soda (basic food is a need, treats are a want).
- Entertainment: Going to the movies, an amusement park, or buying a new book for fun.
- Upgrades: A fancy smartphone with a special case, a big-screen TV, or designer clothes.
Why Does It Matter?
Learning the difference between needs and wants is the key to managing money well.
When you get an allowance or some money for your birthday, you have to decide how to spend it. If you spend all your money on wants right away, you might not have enough left over for your needs (like saving up to buy a healthy lunch if you run out of snacks, or putting money aside for new shoes when your old ones get holes).