Needs vs. Wants
A need is something you must have to be safe and healthy — like food, water, a home and clothes.
A want is something that is nice to have but you can live without — like a new toy or candy.
Smart people pay for needs first. Then, if money is left over, they can choose a want.
You, next time you get some money, think about one need you could buy, like a healthy snack, and one want, like a cool sticker. Which one will you choose first?
Learning objective
Sort everyday purchases and make a choice when you cannot buy everything.
Understand the mechanism
Some things keep us safe and healthy. Other things are lovely extras. A coat can be a need in cold weather, but a second fancy coat might be a want. Ask what the thing helps you do.
People have different needs. Glasses may be a need for someone who cannot see clearly. We do not tease people for needing different things.
Put it to work
Before spending, name the need, find a safe choice and then see what is left. A grown-up helps with big family choices. You can practice with pretend money and small choices.
Worked example
- 1
You have five pretend dollars.
- 2
Lunch costs three dollars and a toy costs four dollars. Both together cost seven.
- 3
Choose lunch first. Two dollars remain; you can save them toward the toy.
Choosing now sometimes means waiting for something later.
Your practice lab
You have $6. Water costs $2 and a game costs $5. What can you choose?
Personal scratchpad · not graded or saved
Leo's Allowance Choice
Leo gets a small allowance each week. He has been saving up for a cool new race car toy. He is just one dollar away! This week, he also needs to buy a bottle of water for his school sports day.
The water bottle costs one dollar. Leo knows if he buys the water, he can't buy the race car today. He thinks hard. He remembers that water is a need because it keeps his body healthy, especially when he is running and playing.
Leo decides to buy the water first. He feels proud of his choice. He knows he can save his money for just a little longer and get his race car next week, after taking care of his health.
Choosing your needs first helps you stay healthy and plan for your wants later.
Illustrative example — names and figures are composites for teaching.
Think about something you want to buy soon. Is it a need or a want? Write down what it is and why.
Example: I want to buy a new bouncy ball. This is a want because I don't need it to be safe or healthy. It would just be fun to play with.
Go deeper — outside resources
- MyMoney.gov — learning hub · MyMoney.gov
- FDIC Money Smart — learning hub · FDIC Money Smart
- Once Upon a Dime (Interactive Story) · Federal Reserve Bank of Kansas City
Key ideas
- Needs keep you safe and healthy
- Wants are nice extras
- Needs come first
Try it: Walk around your home and name three needs and three wants.
Quick check
1. Which one is a NEED?
2. What should you pay for first?
3. What is a 'want'?
4. It's cold outside and you don't have a jacket. A jacket is a...
5. Your friend needs special shoes to help them walk without hurting. For your friend, the shoes are a:
6. You have $2. An apple costs $1 and a small pack of stickers costs $1. Which is the smart thing to buy first?