Needs VS Wants
This term refers to something you must have to survive, like food or shelter.
What is a need?
This is the word for the money you earn.
What is income?
This long-term habit helps you prepare for big purchases and emergencies.
What is saving money?
This type of expense stays the same each month, like rent.
What is a fixed expense?
This plan for your money helps you track income and spending.
What is a budget?
This monthly payment for a place to live is considered a need.
What is rent?
A paycheck from a job is an example of this type of money you receive.
What is earned income?
This special fund is money you set aside for unexpected events.
What is an emergency fund?
This type of expense changes from month to month, like groceries or phone data.
What is a variable expense?
When you spend more than you earn, this negative financial situation happens.
What is being in debt?
(or What is overspending?)
This type of spending—like buying fast food—feels necessary but isn’t required for survival.
What is a want?
Working 10 hours at $15 an hour gives you this total amount before taxes.
What is $150?
Many financial advisors say you should save this small portion of every paycheck.
What is 10%?
Your electric bill is considered this type of expense.
What is a variable expense?
One benefit of having this monthly plan is that it helps reduce stress about money.
What is a budget?
This action, such as cutting back on non-essential spending, can help you stay within your budget when you notice you're starting to overspend.
What is adjusting your spending?
(or What is cutting back on expenses?)
This type of income is the amount you take home after taxes and deductions.
What is net income?
This strategy—like automatic transfers—helps people save money without thinking about it.
What is pay yourself first?
(or What is automatic saving?)
These two categories, one predictable and one flexible, describe most monthly bills.
What are fixed and variable expenses?
This budgeting move—like lowering how much you spend on wants—can help you get back on track when you notice you're going over your budget.
What is cutting back or reducing expenses?
When your phone breaks, deciding whether replacing it immediately is a need or a want depends on this type of reasoning.
What is prioritizing your needs vs. wants?
(or “What is considering necessity?”)
Working 20 hours at $16 an hour gives you this weekly gross income.
What is $320?
Saving $50 each week will take this many weeks to reach a $600 goal.
What is 12 weeks?
Keeping track of these types of expenses—like snacks or hygiene items—is important because they change often.
What are variable expenses?
This regular practice of checking your budget helps you stay on track and meet goals.
What is reviewing your budget?
(or What is adjusting your budget?)