Needs and Wants Grade 6

What is the difference between needs and wants?

• Needs are essential for survival, while wants are not necessary for survival.

• Needs are physical, while wants are emotional.

• Needs are individual, while wants are societal.

• Needs are temporary, while wants are permanent.

List three examples of basic human needs that are essential for your survival.

• Luxury cars

• Food, Water, Shelter

• Entertainment

• Designer clothing

How can wants impact decision making?

• Wants only impact decision making for certain individuals

• Wants always lead to the most rational choice

• Wants have no impact on decision making

• Wants can lead individuals to choose options that fulfill their desires or preferences, even if they may not be the most rational or practical choice.

Why is it important to prioritize needs and wants?

• To ensure that essential needs are met before addressing wants and to make efficient use of resources.

• To encourage overspending and debt

• To create unnecessary competition among individuals

• To make sure everyone gets what they want

What are the consequences of fulfilling wants before needs?

• Strained relationships with family and friends

• Increased stress and anxiety

• Consequences include financial instability, increased debt, and a lack of resources for essential items.

• Decreased happiness and satisfaction

Create a budget based on the following needs: food, shelter, clothing, and transportation.

• Allocate 25% of income to food, 25% to shelter, 25% to clothing, and 25% to transportation

• Allocate 50% of income to food, 20% to shelter, 20% to clothing, and 10% to transportation

• Allocate 40% of income to food, 30% to shelter, 20% to clothing, and 10% to transportation

• Allocate a certain percentage of income to each category: 30% for food, 30% for shelter, 10% for clothing, and 20% for transportation.

Explain the concept of opportunity cost in relation to choosing a college major.

• Opportunity cost is the value of the least desirable alternative when choosing a college major.

• Opportunity cost is the cost of choosing a college major without considering alternatives.

• Opportunity cost is the total cost of all available alternatives when choosing a college major.

• Opportunity cost is the value of the next best alternative that is given up when a choice is made in relation to choosing a college major.

When might it be necessary to delay purchasing a new smartphone in order to prioritize a different need?

• Upgrading to a luxury car

• Buying a designer handbag

• Investing in a home renovation

• Going on a vacation

How can fulfilling wants affect long-term financial planning?

• Fulfilling wants can lead to decreased expenses and improved long-term financial planning

• Fulfilling wants has no impact on long-term financial planning

• Fulfilling wants can lead to overspending and neglecting long-term financial goals, such as saving for retirement or investing in assets.

• Fulfilling wants can lead to increased income and better long-term financial planning

Why is it important to balance your needs and wants when managing your money?

• It's not a big deal, as long as I can buy what I want.

• Setting financial goals is impossible, so why bother balancing?

• I should be able to spend my money however I want, right?

• It's important to balance needs and wants because it helps me prioritize my spending, avoid unnecessary debt, and reach my financial goals.