In this lesson, we will explore the important concept of distinguishing between needs and wants in the context of personal finance. Understanding the difference between these two can play a crucial role in making smart financial decisions, setting priorities, and achieving financial goals. By the end of this lesson, you will be equipped with the knowledge and skills to identify and prioritize your needs over wants.

Needs are essential for our survival and well-being, such as food, shelter, and clothing. Wants, on the other hand, are luxuries or desires that are not necessary for our basic needs but can bring enjoyment or fulfillment. It is vital to prioritize your needs over wants to ensure that you are meeting your essential requirements first before indulging in luxury or unnecessary items. Learning to differentiate between needs and wants can help you manage your finances more effectively and avoid unnecessary debt or overspending.

Key Lesson Concepts:

• Understand the difference between needs and wants
• Learn how to prioritize needs over wants
• Explore ways to manage finances wisely by distinguishing between needs and wants