Needs vs. Wants — slides
Financial Literacy Club
Money Fundamentals · Lesson 5
Needs vs. Wants
Separate what you need from what you want — and spot the "want part" hiding inside most purchases.
10-minute lesson · learnwithflc.org
Needs vs. Wants · 1 / 20
Financial Literacy Club
Money Fundamentals · Lesson 5
Needs vs. Wants
Separate what you need from what you want — and spot the "want part" hiding inside most purchases.
10-minute lesson · learnwithflc.org
Today's goals
By the end of class, you'll be able to…
- Classify expenses as needs, wants, or a mix of both
- Identify the “want part” inside a purchase
- Recognize sales tactics designed to rush a decision
Warm-up
Is a phone a need or a want? Pick a side and give one reason.
Think, then write your answer.
The big idea
Needs vs. Wants
Separate what you need from what you want — and spot the "want part" hiding inside most purchases.
Money Fundamentals · Lesson 5
Needs are what you require to live, stay safe, and keep working or learning: housing, basic food, utilities, transportation to school or work, basic clothing, healthcare, and minimum debt payments.
Money Fundamentals · Lesson 5
Wants make life better but aren't required: eating out, streaming services, concert tickets, the newest phone, brand-name clothes.
Money Fundamentals · Lesson 5
The tricky part: most purchases have a need part and a want part. You need transportation — a reliable used car covers the need; a brand-new car with every upgrade adds a large want part. You need food — groceries cover the need; delivery adds a want part.
Money Fundamentals · Lesson 5
Wants aren't bad. They're a big reason people work. The goal isn't to eliminate wants — it's to choose them on purpose, inside your budget, instead of by accident.
Money Fundamentals · Lesson 5
Watch for pressure tactics
"Only 2 hours left!" and "Just $12 a week!" are designed to rush you or make a price feel smaller. Try a 24-hour rule for unplanned purchases over a set amount.
See it
Examples of splitting purchases into a need part and a want part: a basic phone plan versus the newest model; reliable transportation versus a new car with upgrades; groceries versus eating out; weather-appropriate basics versus brand names.
| Need part | Want part | |
|---|---|---|
| Phone | A working phone and basic plan | The newest model, unlimited everything |
| Transportation | Reliable way to school or work | New car with premium upgrades |
| Food | Groceries for healthy meals | Takeout, delivery, coffee runs |
| Clothes | Weather-appropriate basics | Brand names and trends |
Real example
Marcus and the new phone
Marcus's phone works fine, but a new $1,000 model just came out. His options:
- Pay cash from savings — but that wipes out most of his emergency fund.
- Finance it at about $42 a month for 24 months — it feels small, but it's a commitment through two years of his budget.
- Wait — keep his current phone and put $42 a month into a phone fund. In a year, he can buy a newer model outright, maybe on sale.
His need (a working phone) is already met. The upgrade is 100% want part. Any of these choices can be reasonable — as long as he makes it on purpose and it fits his budget.
Try it together
Try it: need or want?
Sort each item. Some are trickier than they look — read the explanations.
0 of 12 sorted · 0 correct
Rent for a basic apartment
Streaming subscription
Groceries
Concert tickets
Car insurance (if you drive)
The newest phone model
Bus pass to get to work
Designer sneakers
Electricity bill
Daily coffee-shop drink
Minimum credit card payment
A warm winter coat
Activity · whole class · 10 min
Four Corners: Need, Want, Both, Depends
- Label the corners of the room Need, Want, Both, and Depends.
- Read items one at a time: bus pass, $1,200 phone, groceries, name-brand sneakers, home internet, streaming subscription, a car for a job with no bus access, concert tickets.
- Students walk to a corner; call on one student per corner to defend their choice.
- In pairs, students take three “Both” items and split each into a need part and a want part with dollar estimates.
Check for understanding · 1 of 3
You need a way to get to a job 5 miles from home.
Which option keeps the want part smallest while still meeting the need?
- AA new car with a $550 monthly payment
- BA reliable used car, a bus pass, or a bike — whatever's practical
- CA rideshare every day
- DLeasing a luxury SUV
B. A reliable used car, a bus pass, or a bike — whatever's practical
The need is reliable transportation. The cheapest option that dependably meets it has the smallest want part. Everything beyond that is a want — which is fine if it's budgeted.
Check for understanding · 2 of 3
Spending money on wants means you're bad with money.
- True
- False
False
Wants are a normal, healthy part of life. Being good with money means covering needs and savings first, then choosing wants on purpose.
Check for understanding · 3 of 3
A store shows "Only 2 hours left! 40% off!" on headphones you hadn't planned to buy.
What's the best first question to ask yourself?
- AHow much money will I save?
- BCan I split it into 4 payments?
- CWould I buy these at full price, and do they fit my budget?
- DDo they come in other colors?
C. Would I buy these at full price, and do they fit my budget?
A discount on something you didn't need isn't savings — it's spending. Countdown timers are designed to skip this question.
Remember
Key takeaways
- Needs: housing, basic food, utilities, transportation, basic clothing, healthcare, minimum debt payments.
- Most purchases have a need part and a want part.
- Wants are fine when they're chosen on purpose and budgeted.
- Urgency and "small payment" framing are designed to rush you. Slow down.
Discuss
Talk it over
- Is a smartphone a need or a want for a high school student today? Where's the line?
- What marketing tactics have you noticed that try to make wants feel like needs?
Exit ticket
Give an example of a purchase that has both a need part and a want part.
Answer on your exit ticket before you leave.
Nice work today.
Review this lesson anytime — free, no account needed:
learnwithflc.org/courses/money-fundamentals/needs-vs-wants
Next up: finish your worksheet.