Understanding Needs and Wants

What is a need?

• A need is a specific type of food that everyone must eat.

• A need is an optional desire that can be postponed.

• A need is a basic requirement essential for survival or well-being.

• A need is a luxury item that enhances comfort.

What is a want?

• A want is a non-essential desire or wish for something.

• A want is a basic need for survival.

• A want is a mandatory requirement for living.

• A want is a legal obligation to acquire something.

Which of the following is a need?

• candy

• movies

• food

What is an example of a want that can become a need?

• A luxury car.

• A designer handbag.

• A vacation package.

• A smartphone.

Which of the following is a want?

• luxury car

• affordable shoes

• basic t-shirt

What is one strategy to prioritize needs over wants?

• Focus on wants to improve happiness.

• Create a budget to distinguish needs from wants.

• Ignore budgeting and spend freely.

• Buy more luxury items to feel better.

Which of the following is a want?

• Bills

• A vacation trip
• Grocery

• Insurance

Which of the following is a NEED?

• Jewelry

• Designer clothes
• Vacation package
• Housing