Needs vs Wants: What Do You Really Have to Have?

Imagine your family is going on a long trip. You can only take one bag. Inside the bag you find: a toothbrush, a video game, a coat, a bag of sweets, and a bottle of water. Which three things would you choose to take? Think carefully — and ask yourself: WHY did you pick those three? Hold that thought. It is exactly what today's lesson is about.

Every day we use money to buy things. But not everything we buy is equally important. Some things we must have to stay alive and healthy — we call these needs. Other things are nice to have but we would be okay without them — we call these wants. A need is something you cannot safely live without. Food, clean water, a place to sleep, clothing to stay warm, and medicine when you are ill are all needs. Without these things, life becomes very difficult or even dangerous. A want is something that makes life more enjoyable, but you would be fine without it. A new pair of trainers when your old ones still fit, a video game, sweets, or a toy are all wants. There is nothing wrong with wants — they make life fun! But they are extras, not essentials. Here is the tricky part: sometimes something can feel like a need when it is really a want. A phone might feel essential, but if you already have a working one, a brand-new phone is a want. Asking 'Would I be unsafe or unhealthy without this?' helps you decide. Why does this matter for money? When you have a limited amount of money — and most people do — you should spend on needs first. Wants come after. This is one of the most important money skills you will ever learn.