Unit B Money Management Needs v. Wants Financial Literacy Mr. Rotella
Needs • Simply Put: Needs are Things you CANNOT Live Without • Necessary to Survive • Examples: • Rent or a Mortgage Payment • Transportation • Utility Bill • Food • Basic Clothing • Jeans without designer label
Wants • Things that Would be Nice to Have • Not Vital to Survival • If it is Possible to Delay Buying an Item it is a Want • Discretionary Expenses • Example • Going Out to Eat, Going to the Movies, New Clothes, Cable TV
Different Levels • There are many different levels of wants and needs • Example #1: A Winter Coat when it is Snowing Outside is a Need but a New Shirt to Update your Style is a Want. • Example #2: Cooking Inexpensive Meals at Home is a Need and Eating out at a Fast Food Restaurant is a Want.
Think Before You Spend • Do I Need this Item, or do I just Want it? • Never Shop to Feel Good • Euphoria is Gone when the Bills Arrive • Think About what Things are Necessary for your Day to Day Existence