Needs Vs. Wants Youth Edition

Teaching children the difference between needs (essential items) and wants (non-essential items) is a fundamental aspect of financial literacy. Here are some effective strategies and activities to help children understand this important concept:

Strategies to Teach Needs vs. Wants

1. Simple Definitions

Start with clear and age-appropriate definitions:

• Needs: Things we must have to live and stay healthy, such as food, water, shelter, and clothing.

• Wants: Things we would like to have but do not need to live, such as toys, candy, and video games.

2. Real-Life Examples

Use examples from daily life:

• Needs: Explain how having a roof over our heads keeps us safe and warm, or how eating healthy food gives us energy.

• Wants: Discuss how a new toy or a trip to an amusement park is fun but not necessary for living.

3. Visual Aids

Create visual aids such as posters or charts:

• Needs vs. Wants Poster: Use images and simple text to categorize items as needs or wants.

• Interactive Charts: Have children place items (pictures or words) in the correct category on a chart or board.

Activities to Reinforce Learning

1. Sorting Game

Create a set of cards with pictures of various items. Have children sort the cards into two piles: needs and wants.

• Materials: Printed images or drawings, labeled cards.

• Instructions: Discuss each item as they sort and explain why it belongs in each category.

2. Shopping List Activity

Give children a pretend budget and a list of items. They must decide what to buy, prioritizing needs over wants.

• Materials: Play money, list of items with prices.

• Instructions: Discuss their choices and why some items were prioritized over others.

3. Story Time

Read stories or books that illustrate the difference between needs and wants.

• Books: "Those Shoes" by Maribeth Boelts, "A Chair for My Mother" by Vera B. Williams.

• Discussion: Talk about the characters' decisions and what they prioritized as needs.

4. Role-Playing

Create scenarios where children must choose between needs and wants.

• Scenario Example: "You have $10. You can either buy lunch or a toy. Which one should you choose and why?"

• Discussion: Discuss the outcomes of their choices and the importance of prioritizing needs.

5. Savings Goals Chart

Help children set savings goals for a want while ensuring their needs are met first.

• Materials: Chart with columns for goal, amount needed, amount saved, and progress.

• Instructions: Have children track their savings and discuss how they balanced their spending on needs vs. saving for a want.

Discussions and Questions

Engage children in discussions to deepen their understanding:

• Why is it important to meet our needs first?

• Can you think of a situation where a want might feel like a need?

• How do you feel when you have to choose between a need and a want?