Wants vs. Needs
Is food a want or a need?
Need
What is a budget?
A plan for how to spend and save money.
What is income?
Money you earn.
What does it mean to save money?
Set it aside for future use.
You have $20 and want a $30 hoodie. What should you do?
Save more money until you can afford it.
New video games - want or need?
Want
Name one common budget category.
Answers vary: housing, food, transportation, utilities, entertainment, savings.
Name one way a student might earn income.
Babysitting, lawn mowing, chores, selling items, part-time job.
What is a savings goal?
A specific thing you want to save money for.
Your bike gets a flat tire and fixing it costs $10. What kind of expense is this?
An unexpected or emergency expense.
True or False: All clothing is a need.
False — basic clothing is a need; trendy or extra clothing items are wants.
What does it mean to “balance” a budget?
Your spending does not go over your income.
When you get a paycheck, the money taken out for the government is called what?
Taxes
What is interest?
Extra money you earn for keeping your money in a bank account OR extra money you owe for borrowing the bank's money
You want to buy snacks every day, but your budget is tight. What could you do?
Cut back on snacks or choose a cheaper option.
Give one example of something that could be both a want AND a need depending on the situation.
Answers may vary (e.g., a phone: basic phone = need for communication; newest smartphone = want).
What type of expenses usually stay the same each month?
Fixed expenses (like rent).
True or False: You always get to keep your full paycheck.
False — taxes and deductions reduce your take-home pay.
True or False: Saving a little money every month can add up over time.
True
You get $15 for your birthday. What’s a smart financial choice you could make?
Save part of it or put it toward a savings goal.
Explain why transportation can be a need AND a want.
Basic transportation to school/work is a need; choosing a luxury car or frequent ride-shares is a want.
What do we call expenses that change month to month?
Variable expenses (like food, gas, entertainment).
What is “net income”?
The money you take home after taxes and deductions.
Why is starting to save early a good idea?
Your money has more time to grow with interest.
You overspent on entertainment and can’t pay your phone bill. What is the best budgeting strategy?
Reprioritize needs over wants; reduce entertainment spending; adjust your budget.