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“Mom, I need that giant stuffed avocado.”
Sound familiar?
If there’s one money lesson I repeat more than any other, it’s this:
“That’s a want, not a need.”
Teaching your kids the difference between needs and wants isn’t just a budgeting tip—it’s a life skill . And the good news? You can start this lesson as early as preschool—no calculator required.
Here’s how I explain it in a way that actually sticks.
Why This Lesson Matters
We’re living in a “buy it now” world, and kids are growing up with constant ads and instant gratification.
Learning the difference between needs and wants helps them:
- Make smarter choices with their money
- Feel empowered to save up for what they want
- Avoid impulse spending (which let’s be honest—even grown-ups struggle with!)
Step 1 – Use Simple Words
Here’s how I break it down for my kids:
- Needs – things we must have to live: food, water, clothing, shelter, medicine
- Wants – things that are fun to have but not necessary: toys, candy, video games, glitter pens
If they’re younger, I use this simple phrase:
“Needs help us live. Wants make life fun.”
Step 2 – Make It Visual (or Silly!)
Try this game at the dinner table or in the car:
🛒 “Need or Want?” Game
Call out items one by one and let your kids yell out need or want. Mix in silly ones too.
Example list:
- Toothbrush
- Ice cream
- A pet llama
- Shoes
- Unlimited Wi-Fi
- Homework
- Pizza
- Bed
It gets silly fast, which makes it memorable. Bonus points for the laughter.
Step 3 – Create a Needs vs Wants Sorting Chart
Use a simple T-chart or grab my printable (coming up next!)
Let your child cut out or draw pictures of different items and sort them into “Needs” or “Wants.”
It turns learning into a hands-on activity, and it sparks awesome conversations.
Step 4 – Let Them Use It With Their Own Money
The best way to make the lesson stick? Real-life experience.
Give them their allowance or birthday money and walk through decisions:
- “You’ve got $5—do you want to save for new markers or buy gum today?”
- “How much do you want to spend vs. save?”
Let them make mistakes. That $3 keychain impulse buy teaches more than a lecture ever will.
Final Thoughts
Wants aren’t bad—and neither is treating your kids.
But knowing the difference helps them make smarter choices, and it builds gratitude along the way.
Start with small conversations. Make it fun. And keep practicing.
Before long, you’ll hear them saying, “I think that’s a want.”
More Posts You’ll Love:
- How to Make Budgeting Fun for Kids (With Free Printables!)
- 10 Age-Appropriate Money Lessons for Kids
- How to Raise a Financially Responsible Child
