Teaching Kids the Difference Between Needs and Wants

Street signs labeled 'WANTS' and 'NEEDS' attached to a lamp post

“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

mother and young daughter sitting on a couch, holding hands and engaged in conversation.

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

Mother and father sitting on a gray couch with their two kids in a cozy living room, engaged in conversation

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!)

family of four interacting inside a car, with the father in the driver's seat, the mother in the passenger's seat, and the kids at the back

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

Hand holding a chalk against a blackboard with two columns labeled 'WANTS' and 'NEEDS,'

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

Child looking at the colorful display of toys at a market stall

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

parents sitting on a couch with their young son and daughter, looking at the laptop on the mother's lap, with the father pointing at the screen

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:

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a female child holding several U.S. hundred-dollar bills with overlay text: "TEACHING KIDS ABOUT NEEDS VS WANTS"

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