Learn/Smart Money Habits/Needs vs Wants
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Lesson 1 of 5

Needs vs Wants

🎯 In this lesson you'll learn:

  • Tell the difference between needs and wants
  • Learn to prioritise spending
  • Understand that both needs and wants are okay

The School Canteen Test

It's lunchtime at school. Aanya has ₹50. She's hungry.

In the canteen, she sees: 🍎 An apple — ₹10 (she needs food!) 🍫 A chocolate bar — ₹20 (she wants it!) 🥤 A cold drink — ₹15 (she wants it too!) 🥪 A sandwich — ₹25 (she needs lunch!)

If she buys the apple + sandwich, she eats well for ₹35 and saves ₹15. If she buys chocolate + cold drink, she's still hungry AND has only ₹15 left.

Needs are things you MUST have (food, water, clothes, shelter). Wants are things you'd LIKE to have (toys, treats, games).

The Two Jars Trick

Aanya labels two jars: Jar 1: NEEDS (coloured blue) Jar 2: WANTS (coloured pink)

Every time she gets pocket money, she puts ₹30 in the Needs jar and ₹20 in the Wants jar. When she needs school supplies or a warm jacket, she uses the blue jar. For movies or treats, she uses the pink jar.

This way, she never runs out of money for important things!

Tricky Wants

Sometimes things FEEL like needs but are actually wants.

"I NEED the latest phone" — nope, that's a want. Your old phone still works! "I NEED new shoes" — yes, if your old ones are torn "I NEED ice cream" — nope, that's definitely a want!

The trick is to ask: "What happens if I DON'T get this?" If nothing bad happens, it's a want.

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Needs = Must-Haves

Food, water, clothes, shelter, school fees. You can't live without these!

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Wants = Nice-to-Haves

Toys, treats, gadgets, outings. They're fun but not essential for survival.

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Both Are Okay

You don't have to cut out all wants. Just make sure needs are covered first!

Quick Check

Score at least 60% to complete this lesson.

Question 1 of 4

You have ₹100 and need a school notebook (₹40) and want a comic book (₹60). What should you buy first?