Today is the day for your family’s weekly grocery shopping.

Imagine that this time you have the responsible task of deciding what to buy in order to have food for the coming days. However, you know that you cannot take everything you want because you will not have enough money.

So what will you include on your shopping list and what will you give up?

 

What are needs and wants?

This question is difficult not only for children, but also for adults. But a simple rule comes to help you that you can follow – to assess what things you really need and always put them first. These are needs – the most necessary goods and services on which a person’s survival depends. For example, food. The staple foods for most people are usually bread, meat, dairy products, fruits and vegetables, and rice for a huge part of humanity.

However, sometimes a person wants to eat something else that they like. For example, chocolate or cake. They are delicious and bring pleasure, but existence does not depend on them. That is why they are called wants.

In addition to food and water, people need clothing and housing. To be healthy, they need medical care. And if they want one day to have a good job - a proper education.

People's desires can be very different - from fun toys for children to expensive cars or jewellery for adults. But they all have one thing in common - they are not vital.

 

Goods and services

Both needs and wants are necessities that people satisfy with various goods and services.

A good is an object that you buy to use, such as food, clothes, toys, or books.

A service is something that someone else does for you to help you and receives payment. For example, the hairdresser cuts your hair, the doctor treats you, and the courier brings the ordered pizza.

 

However, often the same good or service can be perceived as a need or a want depending on who uses it and how. For example, a computer is a need for a graphic designer because they need it for work, but it is a want for a child who plays games on it.

On the other hand, every need can be satisfied in a different way and become a need or a want. For example, we need new shoes. We can buy regular or branded sneakers. In both cases, our need will be satisfied, but in the second case we will spend more money because we have considered it important for us to wear exactly those sneakers.

 

Why is it important for people to understand the difference between needs and wants?

If people spend all their money on wants, they may not have enough for the important things. Imagine that your parents only buy you toys, but there is no money for food - that would not be good, right?

Therefore, it is good for people to satisfy their needs first, and if there are funds left, to allow themselves some desires!

Since everyone usually has a certain amount of money, they should always assess what they can afford to satisfy their needs. If you want to learn more about how to plan, what and when to spend your money, see the article "How to make a budget".

Let’s go back to your grocery shopping list. What products would you put at the beginning of the list and which ones would you put at the end? In other words, which products will satisfy the family’s needs and which ones will satisfy its desires? Discuss the list with your parents.