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Financial Literacy Club

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Money Fundamentals · Lesson 5

Needs vs. Wants

Part A. Guided notes

Fill in each blank using the word bank.

Word bank: budgeted · designed · purchases · transportation

  1. Needs: housing, basic food, utilities, , basic clothing, healthcare, minimum debt payments.
  2. Most have a need part and a want part.
  3. Wants are fine when they're chosen on purpose and .
  4. Urgency and "small payment" framing are to rush you. Slow down.

Part B. Check your understanding

Circle the best answer.

  1. You need a way to get to a job 5 miles from home.

    1. Which option keeps the want part smallest while still meeting the need?

    • A. A new car with a $550 monthly payment
    • B. A reliable used car, a bus pass, or a bike — whatever's practical
    • C. A rideshare every day
    • D. Leasing a luxury SUV

  2. 2. Spending money on wants means you're bad with money.

    True/False

  3. A store shows "Only 2 hours left! 40% off!" on headphones you hadn't planned to buy.

    3. What's the best first question to ask yourself?

    • A. How much money will I save?
    • B. Can I split it into 4 payments?
    • C. Would I buy these at full price, and do they fit my budget?
    • D. Do they come in other colors?

Part C. Apply it

Show your work.

  1. 1. Marcus needs a phone for work. A basic phone costs $250; the one he wants costs $1,100. What are the need part and the want part?

  2. 2. Name two tactics that pressure you to buy quickly and one way to slow down.

Part D. Think about it

Answer in complete sentences.

  1. 1. Is a smartphone a need or a want for a high school student today? Where's the line?

  2. 2. What marketing tactics have you noticed that try to make wants feel like needs?

Exit ticket

Name

Give an example of a purchase that has both a need part and a want part.