Need

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vs

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Want

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Need • vs • Want •

Smart Spending Overview
Trend vs. Staple
Fixed vs. Variable Expenses

What is a need?

What is a want?

One of the first steps to becoming financially responsible is to understand the relationship between needs and wants, and find a balance between them. The goal is to stop your wants from taking over, which would leave you unable to cover your needs, or save up for the future.

Need:

Your needs are the expenses that should be met no matter what. Of course, depending on your college or high school situation, your needs will be very different.

Examples of Needs: food, water, school supplies, transportation costs, medications

Want:

Wants are often indulgent, and are things you enjoy and spend your money on, but are more about comfort than your survival. Wants are not bad! They tend to bring almost immediate joy and comfort.

Examples of Wants: trending clothing, streaming services, eating out, concerts, beauty products

As a general rule, if you can say “I cannot live without this” and truly mean it, this belongs in the need category!

Here's a tip: If there is something you really want but are worried about spending the money on, give yourself a week! If you find yourself yearning for it, you know it is worth the purchase. If you feel like you can live without it, you may not need it!