Wants vs. Needs: The superhero skill of smart choices!

“In today’s world of instant gratification, it’s important to teach kids that money and the things it buys don’t just appear. They need to understand where things come from and learn to appreciate what they have. Teaching financial literacy, budgeting, avoiding debt, and delaying gratification from a young age is key to helping them distinguish between wants and needs,” says Alida Hill, founder of FuturePreneurs.

Every hero has a superpower. Some fly. Some have mind-reading powers. But you? You’ve got something just as powerful: the ability to tell the difference between a want and a need.

Believe it or not, that power can help you save the day, especially when it comes to money!

Britannica Kids defines "wants" and "needs" as an important part of any economy. Needs are things that people require to survive – food, water, clothing and shelter. If you don't have these things, your body cannot function and you will die.

Wants, on the other hand, are things that you would like but are not needed for survival. This could be a toy, expensive shoes, or the most recent electronics.



Superhero: Wants vs needs

Needs are the real superheroes of everyday life. You have to have them to stay safe, healthy and strong. These include:

• Food and clean water (super fuel!)

• Clothes and shoes (for all kinds of missions)

• A safe home (your hero HQ)

• School supplies and learning (every brain needs training!)

• Medicine and healthcare (for when you battle germs)

Without your needs, even the greatest heroes wouldn’t be able to save the day.

Wants, on the other hand, are the sidekicks. They’re fun, exciting and nice to have, yet you can carry out your hero duties without them. Some examples of these sidekicks are:

• Video games and toys

• Chocolates and snacks

• The latest sneakers

• Movie tickets

Basically, wants make life more awesome, but they’re not mission-critical.



Using your power

Every time you get money – from an allowance, birthday gift, or doing chores – you face a big decision: spend it on a want or a need.

Smart heroes know the rule: always take care of the needs first. Then, if there’s money left, choose a want or save up for something even more epic.

Here’s a trick straight from the Hero Academy: ask yourself, “Do I need this to survive and save the day, or do I just really want it?” If it’s not something you need to stay safe, healthy or ready to learn, it’s a want.



Real-life hero tip

According to the Consumer Financial Protection Bureau, learning how to tell the difference between wants and needs is one of the best ways kids can start making smart money choices early on.

So, cape up! With this financial superpower, you’re ready to take on any financial challenge — one need and one want at a time.