Thinkabara

💰 Money Skills for Kids & Teens · Lesson 2 of 7

Needs or wants?

Google Classroom

What you must have, what is nice to have, and how to decide.

What is the difference?

A need is something that is hard to live without: food, water, a home, clothes, medicine, school supplies. A want is something fun to have that you can live without: another video game, brand-name sneakers, candy. There is nothing wrong with wants. You just take care of needs first.

It is not always black and white

SneakersA need. $150 sneakers instead of $40 ones: the extra $110 is a want
PhoneSometimes a need, to stay in touch. The newest model is a want
FoodA need. A soda every day is a want
Sports team or lessonsDepends on the family and the child. Talk about it together

How to decide

  1. Ask: what happens if I do not buy it?
  2. If the answer is “nothing, it is just a bit sad,” it is a want
  3. Wait 24 hours before buying a want
  4. If you still want it a day later, check whether you have the money and what you will give up for it

Tip

💡 Each dollar can be spent only once. If I spend $3 on candy, those $3 will not be in my bike savings. That is called the opportunity cost.

✏️ Practice: your turn

  1. Write down 10 things your family bought this month and sort them into two columns: needs and wants
  2. Pick one want and wait 24 hours. Do you still want it?
  3. Tell your parents about something you gave up, and what for
  4. Cut pictures out of a store flyer and sort them into needs and wants

✏️ Percentage calculator: work out sales, tips and savings

🧠 Quick quiz

Answer all 4 questions correctly to mark this lesson as done.

1. Which of these is a need?
2. What do you do before buying a want?
3. Good sneakers cost $40, brand-name ones cost $150. How much of the price is a want?
4. What is “opportunity cost”?

0 of 4 correct

All lessons in Money Skills for Kids & Teens

  1. 🪙 1. What money is and where it comes fromBartering, dollars and cents, and how people earn money
  2. ⚖️ 2. Needs or wants?What you must have, what is nice to have, and how to decide
  3. 🫙 3. Allowance and a budgetThree jars: spend, save, give
  4. 🎯 4. Saving for a goalHow many weeks until I can buy it, with a full example
  5. 🛒 5. Smart shoppingComparing prices, unit price, and the tricks of sales and ads
  6. 🏦 6. Banks and interestAccounts, debit cards, interest and compound interest in dollars
  7. 🔐 7. Money online, safely — and a final projectIn-game purchases, scams, card details and a family budget