Needs, Wants and Priorities

OUTLINE Luna’s Story Purchase history and categorization Perception, lifestyle and choices Priorities Quick Quiz Media response

Why it’s important to talk about—NOW If we fail to separate needs from wants, we cannot establish spending priorities—we can’t live within a realistic budget. Learning the difference between needs and wants will help you manage your money throughout life why now? Youth are key targets for marketers Teens see shopping as a recreational pastime. Almost all income is disposable Influencers of family spending Spending becomes habitual.

Luna’s Story Why was it important for Luna to separate her needs from her wants? How were her choices influenced by factors like excitement, short-term thinking, style, etc.?

In your Groups of 3: On the provided worksheet, create a list of your recent purchases (everyone’s) Write 3 items from your list on the board You have 10 minutes 

Needs and Wants What is a need? a necessity, something required, something essential for life What is a want? a desire, something wished for, something non-essential

In your words: “needs are necessary to survival: like water, shelter, food and clothes…wants are things that are NOT needed to survive like excess clothing, video games, television…wants make life more comfortable, which is why they are desired, but not needed” “even the needs sometimes get over inflated; we think that we need expensive jewelry /clothing or a giant fancy house… the truth is, almost all of what we buy is wants” “I think the difference between needs and wants is that the things you need are essential to survive… but to a certain extent. Not $100 a month on clothing and unhealthy food…”

Your recent purchases: Wants Or Needs

Maslow’s Hierarchy of Needs:

Priorities 1, 2, 3: Not all needs (or wants) have the same priority or importance. Varies from person to person…culture to culture Priority 1: items that are essential for healthy living Regardless of culture, etc. Priority 2: Items that are not essential but important Bicycle, entertainment, education, info-tech Priority 3: Items that are not essential, and not important. Popcorn @ movies, new music, iphone5 (versus your totally fine 4)

In your groups Review the list of purchases you compiled as a group Rate each item purchased using the 1,2, 3 system. Total the amount of money spent on low-priority or non-essential items (categories 2 and 3) Discuss what else you could do with that money

Why it all matters What you define as a need or want, and what priority you place on those will influence how much money you will need in life. In truth, expense for wants can be reduced or even eliminated. Usually though, you will have enough to buy some, just.not.all Learning to distinguish between needs and wants and to set priorities is an important skill that will help you throughout life Start right meow!

Quick Quiz! _____/7 Complete the Quick Quiz. Include your NAME You can use your notes! HAND it in! Finished? Write a paragraph explaining how media advertising promotes a culture of “wants” rather than “needs”. Include examples! (5 marks)