Money Fundamentals

My Needs and Wants

The Difference Between Needs and Wants

Here’s a good rule about money: It is very important to put your needs first. That’s why it is important to know the difference between your needs and your wants. Before you start planning how to use your money, let’s be clear about the difference between needs and wants.

  • A need is something you must have to survive, like a place to live and enough food to eat.
  • A want is something you might like to have, but not something you must have to survive. You also don’t have to have it right away. You can save to have it later.

What Are Your Money Values?

Your values are the ideas and beliefs that really matter to you. Your values will determine what you will do with your money. Asking yourself, “How do I use my money now?” will tell you a lot about your money values.

People use money in two ways:
   1. To buy things they need or want now.
   2. To save for things they may need or want later.
It’s not about how much money you have, but how you use your money. It is all about the choices you make.

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