Topic 1: What's the difference between a want and a need?
- Your progress
Watch the video and respond to the activities.
Do you really need that item?
A need is something that you need to live in function like clothing food or housing but a want is something that can improve the quality of your life.
Buying a designer jacket, you need clothing but that’s an expensive option.
If you struggle to decipher between a need and a want then you should ask yourself these questions:
- Do I really need these items to live and function?
- Can I get this in a less expensive way, like choosing a different brand?
- Would your life be different with this item? You may get more compliments or attention but is that compliment for you or jacket and is that attention really for you?
Buying a designer jacket is a want.
Remember: Fifty percent of your income goes towards your needs; three percent towards your wants; the rest towards savings—it’s pokey banks baby!
Question
Which of the following is considered an essential expenditure?
Discussion
Thinking back over the last week, the items that we have used or bought, let’s sort them into ‘needs’ and ‘wants’. Put items that overlap in the middle.
Let's see how this works in real life
As we shop over the next week, tally up the items that are needs and wants. Let’s see how much we spend in each category?
