Needs vs Wants

Needs vs. WantsNeed - something necessary or required for life

Brainstorm examples of needsFood, water, clothing and shelter

Want - something unnecessary but desired

May increase the quality of living or make a person happier

Brainstorm examples of wantsMP3 player, Play Station, designer clothes

How do values influence wants? If being popular or having all of the newest

gadgets is valued, a person may have a lot of wants

Needs vs. Wants

You Decide! Car

Nike Sneakers

Hot Tub

Computer

Food

i-Pod

Cell Phone

Clothes

o Impulse Buying – When you see something and suddenly you can’t live without it.

Examples:o An article of clothing in the store.o A commercial for fast food that looks too

good to pass up.o An advertisement on the radio as you are

driving near a shopping complexo The smell of food cooking as you walk

past a restaurant

Impulse Buying

Spending Money How do values influence how people

spend money and make financial decisions? If an individual values helping others, he

may decide to give money to a church or other charitable groups

How do needs and wants influence how people spend money and make financial decisions?