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Needs vs Wants
FinanceSource: This curriculum
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.
Example
Food at home is a need. A daily bubble tea on the way home is a want. Having a phone is mostly a need. Upgrading to the newest model every year is a want. Both wants are fine. The trouble starts when you call them needs and wonder why nothing is left over.
How it fits in
A working budget separates the two so each gets a fair share. The trap is that frequent wants start to feel like needs, especially ones tied to convenience or social pressure. Reviewing one month of your spending in two columns is usually enough to spot the drift. The point is not to cut all wants. It is to choose them on purpose instead of by accident.