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What are needs and wants, and why is it important to distinguish between them when making spending decisions?

Financial Education
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  • Explication d'Alloprof

    Explication d'Alloprof

    Cette explication a été donnée par un membre de l'équipe d'Alloprof.

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    Équipe Alloprof • 1m

    Hi there!

    Thanks for checking in :)

    A need is something that you really need in your life (food, a house, gas, your cellphone bill, etc.).

    A want is something that you would like to have, but you don't really need. A new shirt when your other ones are just fine, a new cellphone when your old one still works, etc.

    It's important to take them into account, because when you spend your money, you need to make sure you have enough for your needs and your savings. You can still buy some wants, but I wouldn't prioritize them!

    Hope that helps! :D

    Ariane

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