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www.funancialquest.com – Online Course Module

Online Course
Module 3

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Module 3

Duration: 30 Mins
Needs Vs Wants

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Needs Vs Wants
Module 3: Needs Vs Wants

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www.funancialquest.com Module 3: Needs Vs Wants

Needs Vs Wants
•What is it?
•Needs
•Wants
•Think before you spend
•Why is it important?
•How to tell the difference?
•What's it's use in real life?
•Examples
•Conclusion
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What is it?

What is this concept all about?

Need- something you have to have
Want -something you would like to have

Needs are things which are absolutely necessary and can affect the day to day life
in case of their absence. Wants are things beyond our needs which may help
enrich our lives and make give us happiness. The secret is to balance both the
Needs and the Wants and never let the Needs suffer because of an uncontrolled
pursuit of the wants.
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Needs

What are Needs?

In actuality, you only need four things to survive:
•Roof – Your house, room or dormitory
•Nutrition – Food, water and supplements
•Health & Hygiene – Necessary expenditure to maintain good health & hygiene
•Clothing – Decent clothes & attire to make you look presentable and give confidence
•Others – Some important or urgent expenditures like taking an Auto rickshaw instead
of a bus to reach for an appointment on time.

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Wants

Everything which goes beyond the basic needs can be termed as wants. Some of
the examples can be:
•A new Toy Plane you saw at a friend‟s house
•A new bicycle when your current one is absolutely fine
•Latest iPhone when your basic phone has all the functionalities you currently require
•Eating out in an expensive restaurant for free toys

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Wants

Everything which goes beyond the basic needs can be termed as wants. Some of
the examples can be:
While we are learning to differentiate between the Needs and the Wants, it does not
mean that you should only buy things that you need. The key is to Balance your
Needs and your Wants, with a priority always fixed on the Needs.

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Think before you spend

Handle with Care

Before you buy something, ask yourself, “Do I need this item, or do I just want it?”
You may be surprised at how many things are actually “wants.
A Balanced approach would not just ensure that your Needs are taken care of, it
would also ensure that you have savings to meet some of your wants too!
Take the following steps to ensure a balance:
-Make a habit to save regularly, even if it is in small amounts
-Plan your expenses – take note of even small expenses
-Prioritise your wants too – which of your wants to meet first?
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Why is it important?

Balanced Living is Important!

Life is but a balancing act. Too much of anything thus is bad. Sometimes, we get
confused between our priorities and for some wants, get deprived of our needs.
Thus it is important to keep the balance and be aware of the needs and the wants. It
is important to save and plan expenses.

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How to tell the difference?

The Judgement

Here are a few questions which can be asked in case there is a confusion.
-Would you be able to afford it with your current savings?
-Would not having the thing affect your day to day living?
-Would delaying the buy affect your day to day living?
-Would buying a cheaper version affect your day to day living?
-Would it affect your long and short term saving goals?
-Would you be making the purchase just because it feels good?

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How to tell the difference?

The Judgement

If the answer to most of the above questions is „NO‟,

You should term the item as a „Need‟ and go ahead and make the purchase! In any
other circumstance, it is merely a „Want‟ and its purchase should be delayed as
long as possible.

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What's it's use in real life?

The Yin-Yan of Life.

Our resources are always scares when it comes to meeting all our needs and
wants.

Thus, life is a balancing act of choices between Needs and Wants. If we pursue the
wants without a check, our Needs may be left unattended and thus may affect our
day to day lives.

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Example 1

Identify the Need and the Want among the following:

•A Laptop which can take care of all homework and study needs
•A Gaming Laptop which can take care of all the latest game specs.

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Example 2


•A New Illustrated book of Atlas for your Geography lessons
•A new comic book your friends were talking about

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Example 3


•A Pen drive to save your important project work files
•An iPod which can store 5000 songs

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Conclusion

What have we learnt today?

•We have got the following learning in this module
• What are needs and Wants
• Why is it important to understand Need Vs Wants
• A few examples to help distinguish between a Need and a Want

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-End of Module 3-
When ready, test your knowledge
and receive a score!
Note: The test contains 10 Objective Type Questions to be finished in 10 mins duration.

For more interesting updates and information, visit us on www.facebook.com/funancialquest

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