Needs vs Wants
Knowing the difference can help you decide what matters most.
What's a need? What's a want?
A need
Something important for living, learning, staying healthy, or taking part in everyday life.
- Food
- Basic clothing
- School supplies
- Essential transport
A want
Something we'd like to have, but can usually live without.
- Toys
- Games
- Treats
- Extra gadgets
Some things depend on the situation
A phone, for example, might be mostly a want for a young child — but an important tool for an older person, or someone who needs it for work. This lesson isn't about memorising a fixed list; it's about learning to think it through.
You can't always have both
You have $10. You need a school item costing $6. You also want a toy costing $5. You can't buy both. What could you do — buy the need and save the rest, delay the want, or look for something cheaper? There's more than one reasonable answer here.
Wants are not bad
Wanting things is completely normal, and money can absolutely be spent on things we enjoy. The skill isn't avoiding wants — it's knowing what matters most to you, and making choices with the money you actually have.
Need, want, or depends?
Have a think about each of these:
A bike might be a need if it's how someone gets to school, or a want if it's just for fun. An internet connection might be a need for schoolwork, or more of a want otherwise — it really depends on the situation.
Next time a real shopping decision comes up, instead of simply saying "that's a want," try asking:
Where to next
Once you know what you need and want, you can start deciding what you'd like to save for.
Next lesson: Money Goals
Now that you know needs from wants, let's turn a want into something you can actually save for.