“I NEED It!”... Or Do I?

Have you ever seen something at a store and thought: “I NEED THAT!”

Maybe it was a toy. A new game. A giant bag of candy.

Shoes with your favorite character on them. Or something you saw another kid have.

Sometimes we say we need something when what we really mean is: “I really, really want it.”

And that is okay. But a need and a want are not the same thing.

Learning the difference is one of the first money skills you can learn.

First, What Is Money For?

Money helps people pay for things.

We use money for food, clothes, a place to live, things for school, fun things, and lots of other things.

But here is something important:

MONEY CAN BUY MANY THINGS. IT CANNOT BUY EVERYTHING AT THE SAME TIME.

That means we have to make choices. And before we choose, it helps to know: Do I need this? Or do I want this?

What Is a Need?

A need is something important that helps you live, stay healthy, stay safe, or take care of something you have to do.

For example:

• Water
• Food
• A safe place to live
• Clothes that fit
• Medicine when you need it
• Things you need for school

Needs help take care of something important.

A NEED HELPS TAKE CARE OF YOU OR SOMETHING IMPORTANT YOU HAVE TO DO.

What Is a Want?

A want is something you would like to have, but you can usually be okay without it. For example:

• A new toy
• Candy
• A video game
• Another stuffed animal
• A special drink
• A cool hat
• A second dessert

You might want one of those things a lot. That still does not automatically make it a need.

“I REALLY WANT IT” DOESN’T ALWAYS MEAN “I NEED IT.”

Wants Aren’t Bad

This part is important. Wants are not bad. Toys can be fun.

Ice cream can be fun. Games can be fun. Going somewhere special can be fun.

Money is not only for serious things. Sometimes we use money for things we enjoy. The skill is learning to know which is which.

If there is enough money for only one thing, a need may have to come before a want.

If the want has to wait, that does not mean “never.” It might mean “not right now.” Later, you may decide to save for it.

A WANT CAN WAIT. A NEED SOMETIMES CAN’T.

Sometimes the Same Thing Can Be a Need or a Want

Here is where it gets interesting.

Think about shoes. Your shoes are too small and hurt your feet. Do you need shoes that fit? Yes.

Now imagine you already have good shoes that fit, but you see another pair because they light up and you love the color. Do you need the second pair? Probably not. You may want them.

Same kind of item. Different reason.

Let’s try food. Your body needs food. But does your body need a giant bag of gummy bears?

No. The food is a need. The gummy bears are a want.

Now think about a backpack. You need one for school and you do not have one. That could be a need.

But you already have a backpack that works, and you want another one because it has your favorite character on it. That new backpack is probably a want.

So sometimes the best question is not only “What is it?” Ask:

“WHY DO I NEED IT?”

Let’s Try a Money Choice

Imagine you have $10.

There is a toy you really want. It costs $10. But you also need something for school that costs $8.

Can the same $10 buy the $10 toy and the $8 school item?

No. You only have $10. That means you have to choose. If you use all $10 on the toy, the money is no longer there for the school item.

That is one of the biggest things to learn about money:

WHEN YOU CHOOSE ONE THING, YOU MAY HAVE LESS MONEY FOR SOMETHING ELSE.

That does not mean you should never buy toys. It means you want to know what your money needs to do before you spend it.

Before You Choose, Ask Two Questions

The next time you want something, try this.

Sometimes you may not know. That is okay. You can ask a parent or another trusted grown-up to help you think it through.

The goal is not to answer as fast as possible. The goal is to think before you choose.

Let’s Check Your Answers

1. Water after playing outside → NEED

Your body needs water.

2. Giant candy bar → WANT

It might taste good, but you do not need the candy bar to stay healthy or safe.

3. Jacket that fits when it is cold → NEED

Warm clothes can help protect you from the cold.

4. Another jacket because of the superhero → WANT

You already have a jacket that works. The superhero jacket sounds fun, but it is something extra.

5. Lunch → NEED

Your body needs food.

6. Ice cream after lunch → WANT

Ice cream can be a fun treat, but you can be okay without it.

7. Notebook required for school → NEED

You need it to do something important for school.

8. Giant box of crayons when you already have crayons → WANT

The extra colors might be exciting, but you already have crayons that work.

How did you do? If you missed one, that is okay. You are learning.

Here’s the Tricky Part

Sometimes two people might look at the same thing and have different answers. That does not always mean somebody is wrong.

Think about a bicycle. For one kid, a bicycle may only be something fun to ride. For another family, a bicycle might be important transportation.

The situation matters. If you are not sure, ask:

• What is this for?
• Do I already have something that does the job?
• What would happen if I did not have it?

Those questions can help you decide.

The TaxFunders Need or Want Check

When you want to buy something, remember four words:

STOP.

Don’t choose right away.

ASK.

Do I need it or do I want it?

THINK.

Do I already have something that does the same job?

CHOOSE.

Should I get it now, wait, or save for it?

STOP → ASK → THINK → CHOOSE

That is a money skill. And you can start practicing it right now.

Money Starts Early

You do not have to wait until you are an adult to learn how money works.

One of the first things you can learn is that money gives us choices. But we cannot choose everything at the same time.

Needs help take care of important things. Wants can make life fun. Both can have a place. The important part is knowing which one you are looking at before you make the choice.

KNOW WHAT YOU NEED. THINK ABOUT WHAT YOU WANT. THEN MAKE A CHOICE.

And the next time you hear yourself say “I NEED IT!” try asking one more question:

“DO I NEED IT…OR DO I REALLY WANT IT?”

MONEY STARTS EARLY

Education First. Always.