Spending - Need or Want?


It is important to decide if what you are spending your money on is a need or want. Understanding the difference will help you make better decisions about how you spend your money.

Needs are things you must have for living or survival. Needs are things like food, shelter, and clothing.

Wants are things that can make your life better or more enjoyable. Wants are things like vacations, jewelry, or video games.

Someone standing on two yellow arrows, one that says wants and one that says needs

Decisions About Wants and Needs

When spending your money your choices can make a difference in a want or need. For example, if you NEED to buy meat for a meal, you can buy hamburger meat to meet the need. If you decide to buy ribeye steak, it could become a WANT. This is because a ribeye steak is more expensive than most other types of meat.

Someone’s wallet with money in it and a post-it note on it that reads spend wisely
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Tools: My Needs and Wants

Use this tool to learn more about deciding what you need versus what you want.

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Activity: Understanding Needs and Wants

Use this activity to walk through what your needs and wants are. You can print the activity or look at it online and write your answers on your own.