Understanding Needs vs Wants

The video tutorial explains the difference between needs and wants, providing examples of each. It offers strategies for distinguishing between them, such as allowing time to pass to see if the desire for an item persists. The tutorial guides viewers on how to identify their personal needs, review and adjust their lists, and create a budget that prioritizes needs while accommodating wants. The video concludes with a call to action to subscribe for more content.

Which of the following is considered a need?

• Travel

• Designer clothing

• Medical care

• Entertainment

What is a characteristic of a want?

• It is a fixed expense

• It improves quality of life

• It is essential for survival

• It is necessary for functioning

What happens to the desire for a need over time?

• It disappears

• It grows stronger

• It remains the same

• It weakens

Which question can help determine if an item is a need?

• Do my friends have it?

• Do I need it to live and function?

• Is it trendy?

• Is it expensive?

What should you do if you're unsure about an item's category?

• Check if it's on sale

• Ask if it's necessary for living

• Buy it immediately

• Ignore it

What should you do after listing your needs?

• Ignore the list

• Purchase all items

• List remaining expenses as wants

• Add more items to needs

How can you refine your list of needs?

• Swap needs with wants

• Add more items

• Remove items that are not essential

• Ignore the list

What is the first step in creating a budget?

• Spend all your money

• Assign dollar amounts to wants

• Assign dollar amounts to needs

• List all your desires

What should you do with the money left after budgeting for needs?

• Use it for loans

• Save it

• Invest it all

• Spend it on wants

Why is it important to distinguish between needs and wants?

• To buy more wants

• To ignore savings

• To create a balanced budget

• To spend more money