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, every person’s needs will be different. Your parents’ may foot the bill of a lot of your needs while in high-school, but being able to identify what classifies as a need is still good practice!

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

Want:

Wants are often indulgent, and are things you enjoy and spend your money on, but are more about comfort than your survival.

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!