Wants vs. Needs

 

Making Smart Money Choices

 

Learning the difference between wants and needs is important in managing money wisely. Understanding this can help you make smart financial decisions and build strong money habits for the future!

What’s the Difference?

• Your needs are the things you need to live and stay safe. These include food, clothing, shelter, transportation, and healthcare.
• Wants are things that are nice to have but aren’t necessary. These include video games, name-brand clothes, eating out, and the latest phone.

How to Prioritize Your Spending

• Cover Your Needs First: Before spending on fun things, make sure your essentials are covered.
• Set a Budget: Decide how much you’ll spend on needs and how much you’ll save for wants.
• Save for Big Wants: Instead of impulse buying, set savings goals for things you really want.

Smart Ways to Balance Wants & Needs

• Shop Smart for Needs: Look for discounts and compare prices to save money on essentials.
• Find Free or Low-Cost Alternatives for Wants: Borrow books instead of buying or find fun, free activities instead of spending money.
• Wait Before You Buy: If something feels like a must-have, wait a few days to see if you still want it.

Make Smart Money Choices!

Understanding wants vs. needs helps you manage your money wisely. At American 1 Credit Union, we help you make great financial decisions for a strong future!

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