Talking About Needs And Wants

Chapter 01

Why talk about needs and wants?

Introducing the difference between needs and wants will help your kids decide where to spend right now, and even how to budget in later life. Win-win.

Chapter 02

What is a need vs a want?

It’s all to do with ‘needs’ and ‘wants’. ‘Needs’ are the essentials you need to live. A ‘want’ is something you’d like, but can live without. Cave people were far too busy finding water, food, fire and shelter to worry about any extras.

cave-people

Nowadays, it’s important to make sure you have enough money for ‘needs’ before splashing out on ‘wants’. Allowing money for essential needs is the basis of every good budget. We may all need to eat, but let’s face it, we could survive without ice-cream sundaes.

cave-man-with-icecream

Here are some needs and wants, try printing them out and going through with your kids

Needs

  • air
  • fruit and vegetables
  • basic bills like power
  • somewhere to sleep
  • basic clothing

Wants

  • air conditioning
  • sweets
  • your own room
  • hot tub
  • awesome trainers

Fun Fact

One of our most important needs doesn’t cost a penny – fresh air.

Chapter 03

Talking to your kids about needs and wants

We love a good chat at RoosterMoney, so here are some easy ideas to kick start conversations about needs and wants:

1

Quick fire choices

Fire out a list of things like ‘TV’, ‘bed’, ‘skateboard’, ‘vegetables’, ‘car’, ‘house’, ‘cola’ and so on. Ask your child to say which ones are ‘needs’, and which ones are ‘wants’.

2

This or that

Next time a TV advert sparks a request for a new toy, ask them whether they think they need it? Or is there anything they want more, and would rather spend money on first? You’re not saying no, but it’s a good way to get them thinking.

3

A day’s delay

If kids are pestering for new purchases, play the 24 hour rule. Rather than just buying stuff, set an alarm on your phone for 24 hours’ time. Do you still need to buy it? If it no longer seems so urgent, it could be a ‘want’ rather than a ‘need’.

Expert view

"After giving her children an allowance to cover their “wants”, Kristen Welch, author of “Raising grateful kids in an entitled world”, said: “From watching one of my children spend every dime and then realise THAT WAS IT for the month to watching another save more than I thought possible, it’s been a journey of education in teaching our children how to handle money."

Scientist
Chapter 04

Having some fun with it

 

We all learn best by doing, so here are some fun activities you can try:

1

Split the shopping

In the supermarket, get your kids to identify whether stuff on the shelves or in your trolley are ‘needs’ or ‘wants’ – and discuss any disagreements! It may also depend what you have at home, if you already have porridge but the kids are clamouring for frosty flakes.

2

Clear the clutter

If the bedroom is a tip, instead of just tidying it all away, make it into a race creating piles of ‘needs’ (jumpers, pillows, socks) and ‘wants’ (the 8th toy car, the light-up trainers).

3

Bills, bills, bills

Ask your child to imagine they had their own home and earned their own money. Then ask them to write down all the things they’d have to pay for. Talk about any boring-but-essential items they might miss, like water bills and Council Tax. Sadly life isn’t all pizza and Netflix.

Expert view

“When I asked my nine-year-old to make a list of where her money would go after she left home, I was surprised how much she’d grasped about buying food and paying for heat, light, transport and somewhere to live. Did point out it might be tricky to afford daily taxis and McDonalds though.”

Chapter 05

Other helpful bits & bobs

How RoosterMoney can help

Talk about how they want to allocate money between the “Spend”, “Save” and “Give” pots. If your child wants to give to a particular charity, for example, this will affect how much money they have left for other things they want

The Rooster Pots >

Use the “Split alowance” feature to help your child allocate their pocket money automatically between the “Spend”, “Save” and “Give” pots

Split Allowance >

Use “Goals” to track their “wants”. When you’re out and about and they want to buy something, show them their “Goals” list, to remind them why they were saving. Great practice at deciding whether to spend now and wait longer for their original goal.

Using Goals >