Family ChatIf you won a million dollars, what would be the first thing
you would do with the money? Would you buy something you need or something
you want?
What is the difference between something you need and something
you want?
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Needs vs. Wants
 From education to a new car to groceries, money is what you need to fund your way of life—your needs and your wants.
What you need and what you want are two different things.
Needs are the basic things that are required for your safety and health, including food to keep you alive, clothing to keep you warm, and a shelter to protect you.
Wants, on the other hand, are items you desire but are not critical to life. These may include ice cream, designer jeans, or a new bike.
 Understanding the difference between needs and wants is important when you are managing
your own money. In order to afford the items that you need (such as groceries), you
can't spend all of your money on things that you want (such as a new CD).
Think about needs and wants in your own situation. Click
here
to print out a Needs vs. Wants Chart (or use the Needs vs. Wants calculator
in your toolbox).
NEEDS VS. WANTS CHART
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Need
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Want
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Estimated Cost
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Priority
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Example: Groceries
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$50.00
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1
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Example: Movie
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$10.00
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2
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For more information on Needs vs. Wants, visit the Creating a Budget and Budget Plan sections of this activity. |
