Exploring Values, Needs & Wants

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 What are Values?  Something that is desirable, worthwhile, and important  Influenced by family, friends, teachers, coaches, television, and movies  Each person has different values which guide his/her daily decisions

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Best Friend Advertisement  Write an advertisement for a best friend Include at least five qualities or characteristics you desire or value in a friend Describe why those qualities are important

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Needs vs. Wants Overview of Needs vs. WantsOverview of Needs vs. Wants Video  Need - something necessary or required for life  Brainstorm examples of needs Food, water, clothing and shelter

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 How Much Money Does A Person Need?  Families in India earn $1.00 to $2.00 a day.  Could your family live off $1.00 to $2.00 a day?  What do you think families in India think they NEED?  How do values influence needs? You need shelter, but do you NEED a mansion? You need clothes, but do you NEED designer clothes?

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Needs vs. Wants  Want - something unnecessary but desired  May increase the quality of living or make a person happier  Brainstorm examples of wants MP3 player, Play Station, designer clothes  How do values influence wants? If being popular or having all of the newest gadgets is valued, a person may have a lot of wants Needs & Wants Video

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Spending Money  How do values influence how people spend money and make financial decisions?  People purchase items that are seen as important to them.  Ex. If an individual values helping others, he may decide to give money to a church or other charitable groups  How do needs and wants influence how people spend money and make financial decisions?  An individual’s perception of values helps determine their needs & wants, what items they will purchase.

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Let’s review! You Decide!  Water  Nike Sneakers  Hot Tub  Computer  Home/Apartment  Food  i-Pod  Cell Phone  Clothes  Car  Make up  Electricity  Bike

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Opportunity Cost  Opportunity cost is what you must give up to obtain something else, the second-best alternative. However, what you must give up to obtain your first choice is not really money--it is whatever other good or service you would have spent the money on as your next-favorite choice.  Video Video  Opportunity Cost Video Opportunity Cost Video

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Opportunity Cost

© Family Economics & Financial Education – Revised April 2007 – Get Ready to Take Charge of Your Finances – Exploring Values, Needs & Wants – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona G1 Remember…  Value - Something that is desirable, worthwhile, and important  Need - something necessary or required for life  Want - something unnecessary but desired  A person’s values and perception of needs and wants influence personal financial decisions! 15 min video