Needs vs Wants

Freshman Year · Wealth · Required Lesson

Needs vs. Wants

25–30 minutes Easy Required

Destination

By the end of this conversation, the mentee should be able to explain the difference between a need and a want, recognize when the difference is unclear and make one thoughtful spending choice.

Stop 1 of 4

Talk

Goal: Explore how the mentee currently decides what is important without judging past purchases.

“We all spend money on both needs and wants. The goal is not to eliminate wants. The goal is to make sure our choices match what matters most to us.”

Choose three to five questions

1. What is something you need almost every day?
2. What is something you really want right now?
3. Have you ever bought something and later wished you had saved the money? What happened?
4. Can something be a need for one person but a want for someone else? What is an example?
5. What makes it difficult to say no to something you want?
Mentor Tip: Avoid using this conversation to criticize clothing, food, phones, entertainment or other past purchases. The purpose is to build decision-making skills—not shame.

Stop 2 of 4

Learn

What is a need?

A need Something necessary for your health, safety, responsibilities or basic ability to function.
A want Something that adds enjoyment, comfort, convenience, style or entertainment but is not essential right now.

Basic needs often include food, safe housing, clothing, healthcare and transportation. However, the difference between a need and a want is not always as simple as it first appears.

The item and the version are different

You may need: Shoes.
You may want: A particular expensive brand of shoes.
You may need: A phone for school, work or safety.
You may want: The newest phone available.
You may need: Food.
You may want: Restaurant delivery instead of a less expensive meal.

Needs can depend on the person

Transportation may be a need for someone who must travel to work. Reliable internet may be a need for a student completing schoolwork. Medication may be a need for one person and not another.

Context matters. The better question is often not simply, “Is this a need or a want?” It may be:

“How important is this right now, and what will I give up if I choose it?”

Opportunity cost

Every time you spend money, you give up the opportunity to use that same money for something else. That is called an opportunity cost.

Spending $20 on takeout might mean waiting longer to buy shoes, attend an event or reach a savings goal. Neither choice is automatically wrong. The important part is knowing what you are choosing.

Route 21 Big Idea:
Wants are not bad. Wise money choices begin by taking care of what matters most before spending on what matters less.

Stop 3 of 4

Try

Activity: Need, Want or It Depends?

Look at each item together. Decide whether it is usually a need, a want or whether the answer depends on the situation.

A basic winter coatNeed · Want · Depends
The newest smartphoneNeed · Want · Depends
A monthly streaming serviceNeed · Want · Depends
Bus fare to get to workNeed · Want · Depends
Restaurant foodNeed · Want · Depends
Internet accessNeed · Want · Depends
Brand-name shoesNeed · Want · Depends
Which item was the hardest to classify? Why?

Choose Your Route

Pick the video that best fits your time and interest today. You only need to watch one.

Level 1 · Quick Stop

Needs, Wants and Opportunity Cost

Approximately 4 minutes

A short animated explanation of needs, wants and what we give up whenever we choose one option instead of another.

Watch the Quick Stop
Talk afterward: What is an example of an opportunity cost in your own life?

Level 2 · Scenic Route

Budgeting: Needs vs. Wants

Approximately 10–15 minutes

This high-school and adult financial-education lesson connects needs and wants to budgeting and real spending decisions.

Take the Scenic Route
Talk afterward: Which spending category would be easiest for you to reduce? Which would be hardest?

Level 3 · Open Road

Financial Literacy Deep Dive

Approximately 62 minutes

A broad introduction to income, expenses, budgeting, debt, saving, credit and other financial decisions. This is best watched in sections or over more than one meal.

Explore the Open Road
Talk afterward: Which idea from the video could have the greatest effect on your future?
Mentor Reminder: Let the mentee choose the route whenever possible. The Open Road video is optional and can be divided across several meetings.

Stop 4 of 4

Grow

Reflection

What was the hardest item to decide was a need or a want?
What is one want that is important enough for you to plan and save for?
What is one purchase you might pause before making in the future?
What question could you ask yourself before spending money?

Try the 24-hour pause

Before making a nonessential purchase, wait 24 hours when possible. During the pause, ask:

  • Do I still want this?
  • What else could I do with the money?
  • Will I be glad I bought it next week?
  • Does this choice match one of my goals?

How can your mentor help?

How can Route 21 help?

Is there an item, experience or goal you need help planning for? What kind of support would be helpful?
Mentor Wrap-Up:
Did you avoid shaming past choices? Did the mentee identify something they value? Did you agree on one practical decision or next step?