Students Perspective In Differentiating Needs And Wants

One important idea for kids to recognise is the connection between needs and wants. Things we cannot live without are called needs. While on the other hand, those we would like to have but can live without are called wants. Some needs and wants do not cost any money at all. One example is air, we all need air but we do not have to pay for it. In the same way we all need to exercise to be healthy and we can run around outside for free. On the other hand, most of our needs and wants costs money. Needs include: clothing (basic, like t-shirts and socks), medical care, nutritious food, shelter, transportation, and savings (for an emergency funds and retirement). While wants include: Gadgets, jewelry, toys and candy.

In order to pay for the things they need and some of the things they want, most of people have jobs to earn money. People should utilise the difference between needs and wants in order to spend the money well. In disseminating this information, people should start having conversation with their child asking what will happen if your family spent the money to buy toys and nothing left for food or for paying bills. Explain that even everyone wants toys, they should prioritise their needs like food and shelter. Before buying things they want.

The difference between needs and wants can get a bit tricky. Some family uses a car to drive the kids to school, get to work and so on. In some cases, people need a car. But some wants a bigger and more expensive car than what they actually need. Even a car is a need, the more expensive car is actually a want. Instead of buying an expensive and luxurious car, they could have been saved or spent the money on something else. Another example is food. We all know that we need nutritious food to be healthy. We need fruits and vegetables to get energy and to survive. We also need to drink a lot of liquid to stay alive. But do we need junk foods and softdrinks? We need food and water but we do not need junkfood and softdrinks. Therefore, these things are wants.

Needs and wants may be different from person to person or family to family which may be confusing to children. A small number family can get by a small car, and a large number family needs a larger car, and possibly, more expensive car just to fit everybody. Every home is the same, a family with a large number needs a larger home.

According to Surbhi (2016), economics is a social science, which deals with production, distribution and consumption functions. It is all about making choices regarding the allocation of scarce resources, so as to make their best possible use and satisfy human wants and needs. Looking at the current condition of the world, few people have an understanding of the difference between needs and wants. It seems that most of the people skipped on the basics of Economics 101 which says that a thriving economy is based on both needs and wants. When people in a country or in a society starts prioritising their wants over needs, they run into the problem of scarcity. Scarcity in economics refers to limitation – limited supplies, components, raw materials, and goods – in an environment with unlimited human wants. It is the fundamental economic problem of having what appears to be limitless human wants in a world with limited resources.

This may be confusing, but the bottom line is that most of us have become distorted into thinking that we need things, where in fact, the reality is we just want them. This constant wanting, is driving people to never feel satisfied, to feel like we do not have enough - which is not a healthy way to live and harmful to the welfare of our societies and world economies. The word need is described as “a necessary obligation, or requirement for life.” The word want is described as “the feeling of need, a wish, or craving.” (Daniel S., 2018)