Needs vs Wants:
Helping Kids Make Smart Money Choices (Part 2)

🧠👨‍👩‍👦 A Note to Parents

As your child becomes more familiar with saving and spending, the next step is teaching them how to tell the difference between a need and a want. Understanding this difference builds decision-making skills and helps kids prioritize spending – a habit that will serve them for life.

This article is designed to continue the conversation from our Save or Spend post, introducing the concept of needs vs wants in a simple, relatable way that kids can understand.

🐵 A Story for Kids: Stoffel and the Big Backpack Decision

Stoffel the Monkey has saved 15 shiny banana coins. He was planning a jungle school adventure and wanted to get ready!

At the Jungle Shop, he found three cool things:

• A sturdy backpack for 10 coins (his old one had holes).
• A colourful bouncing ball for 5 coins.
• Banana-shaped sunglasses case for 3 coins.

“Wow,” Stoffel said. “I want them all!”

But then Lila the Parrot landed on his shoulder.

“Do you need all those, or do you want them?” she asked.

“Huh?” Stoffel blinked.

“Well,” Lila said, “Needs are things you must have. Like food, clothes, and school stuff. Wants are things that are fun, but not necessary.”

Stoffel thought for a minute.

The backpack? ✅ A need – he couldn’t carry his books without it.

The bouncing ball? ✅ A want – fun, but not for school.

The sunglasses case? ✅ Another want – super cool, but not urgent.

So, what did Stoffel do?

He bought the backpack (a need), saved 5 coins, and decided to think more before buying the rest.

💬 Talking Points for Parents

Use simple, real-life situations to help your child think through needs vs wants. Here are some helpful questions to ask:

• “What do we need to buy this week?”
• “Is this item something you really need, or just something you really like?”
• “If you had to choose just one, which one would be more important?”
• “Do you want it now, or would it be smarter to save for something else later?”

🎒 Try This at Home

🧺 Create a “Needs vs Wants” Sorting Game

Grab items from around the house (or use printed pictures), and ask your child to sort them into two categories:

Let them explain why they sorted the items that way.

💡 Budget Challenge

If your child receives a weekly allowance or has saved some coins, ask them to:

1. List 2 needs and 2 wants.
2. Choose how much they want to spend on each.
3. Save the rest.

This simple budgeting habit builds awareness and planning skills.

🧭 Final Thought

Learning to tell the difference between needs and wants is an essential part of becoming money-smart. When kids start thinking this way early, they become more thoughtful, patient, and confident with their money.