Understanding Wants vs. Needs in Budgeting

Wants
vs.
Needs

Making Smart Budgeting Decisions

Why is Budgeting Important?

What are some challenges people face when trying to stick to a budget?

The Decision Making -Process

Let's Practice...

Needs should ALWAYS come before WANTS

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Smart financial choices lead to long-term stability

IMPORTANT TO REMEMBER:

​Budgeting helps avoid financial stress

Multiple Choice

What is the difference between wants and needs?

• Wants are always more important than needs.
• Wants are non-essential desires; needs are essential requirements for survival.
• Needs can be ignored for personal satisfaction.
• Wants are basic necessities for living.

Multiple Choice

Why is budgeting important?

• Budgeting is crucial for effective financial management and goal achievement.
• Budgeting is irrelevant in times of financial stability.
• Budgeting is only necessary for large corporations.
• Budgeting restricts personal spending and enjoyment.

Multiple Choice

Which of the following is considered a "need"

• Food, water, shelter, and healthcare are considered needs.
• Fashionable clothing
• Entertainment such as movies
• Luxury items like jewelry

Multiple Choice

What is the first step in the decision-making process?

• Analyze the data
• Make a decision
• Identify the problem or opportunity
• Evaluate the outcomes

Multiple Choice

If you receive $500 per month and your rent is $400, what is the best financial decision?

• Budget your remaining $100 wisely and consider saving.
• Spend all your money on entertainment each month.
• Ignore your rent and invest all your income.
• Borrow money to cover your expenses.

Open Ended

Sarah has a part-time job and earns $800 per month. Her fixed expenses include rent ($300), groceries ($150), transportation ($50), and phone bill ($80). She wants to buy a concert ticket for $120. What should she do to stay financially responsible?

Open Ended

John has $1,000 and wants to buy a new gaming console for $500. However, he also needs to pay for his rent ($600). What should he prioritize?