Each month, we take one financial concept and dive in deep. We offer resources, activities and worksheets to help reinforce that concept. In May, we’re talking about the difference between needs and wants.
For most young children, parents take care of the basic necessities of life. Kids are fed, clothed, and have a place to live. When the basics are taken care of, children’s desires take on a different scope. A really cool toy can become a “need” because the kids haven’t yet compared true needs to that toy.
Another issue that arises is peer pressure. Having a new article of clothing can be viewed as a “need” because “everyone else is wearing it” and being left out can seem like a disaster.
It’s a great way to start the conversation because wants and needs. We’ve listed out some examples for kids to go through, and then we’ve thrown out some questions so kids can determine for themselves.
A great conversation to have in conjunction with this worksheet is how parents save for wants versus needs. Parents save money for groceries, but they also save for the trip to Hawaii.
Come into Young Americans and find more resources like this. And let us know below how this activity works out for your family. We love hearing stories and getting feedback!