Expert Wisdom on Wants and Needs: Empowering Kids with Financial Literacy
Understanding the distinction between wants and needs is a cornerstone of financial literacy. By teaching children this fundamental money concept early on, we equip them with the tools to make informed decisions, prioritize effectively, and develop healthy money habits that last a lifetime.
Below find wisdom on wants and needs from 4 experts, including personal finance professionals.
4 Insights from Experts on Wants vs. Needs
1) Susan Doty, Executive Director, Center for Economic Education and Financial Literacy, University of Texas Tyler (CEEFL)
Susan emphasizes the concept of opportunity cost:
“Everything we value is scarce. Because everything we value is scarce, we can’t have it all. Because we can’t have it all, we must make choices. Every choice we make means giving up something else. The most valued alternative we give up when we make a choice is our real cost … our opportunity cost! Whether it is a want or a need, is YOUR choice worth its opportunity cost?”
This perspective encourages children to evaluate their choices critically, understanding that selecting one option often means forgoing another valuable alternative.
2) North Carolina A&T State University Cooperative Extension
The Cooperative Extension highlights the importance of distinguishing between needs and wants:
“Children must learn to distinguish between needs and wants. When they learn to do this, it becomes easier to budget money and they learn about priorities. Everyone has the same basic needs but how we meet those needs is different.”Sammy Rabbit
By recognizing this difference, children can better manage their resources and set priorities effectively.
Read more from this blog on wants and needs at the North Carolina A&T State University website.
3) Amy Morin, LCSW, Author of 13 Things Strong Kids Do and Editor in Chief at the Verywell Mind
Amy discusses the challenges parents face when teaching this concept:
“It’s not easy to explain to your child that the toy truck they think they need isn’t as important as the electricity you actually need to keep your home running. Saying no is an important part of teaching children that they can’t have everything that they want (even if it’s affordable). Kids need to know you will provide everything they need. Teaching them the difference between needs and wants will set them up with proper financial priorities that will benefit them later in life.”Sammy Rabbit
Her insights underscore the significance of setting boundaries and helping children understand the value of essential needs over transient wants.
Read more from this blog by Amy Morin on wants and needs on the Verywell Mind website.
4) University of Nebraska Lincoln Extension
The Extension emphasizes practical application:
“Helping children determine a ‘want vs. need’ when purchasing something with their own money establishes a baseline for knowing the value of money."
This hands-on approach reinforces the concept by allowing children to experience the consequences of their financial decisions.
Read more from this blog on wants and needs at the University of Nebraska Lincoln Extension website.
Engaging Tools to Teach Wants and Needs
Sammy Rabbit offers a variety of resources to make learning about wants and needs interactive and fun:
Songs: Incorporate catchy tunes like "Wants and Needs" and "Make Your Choices Count" to reinforce lessons through music.
Activities: Utilize the Dream Big Journal and other engaging materials to help children set goals and differentiate between their desires and necessities.
These tools are designed to make financial education accessible and enjoyable for children, fostering a positive learning environment. You will find them in Sammy Rabbit's Money!
Join the Financial Literacy Movement
Share your experiences and strategies for teaching children about wants and needs. Your insights could inspire others and contribute to a broader conversation on financial education. Connect with Sammy Rabbit and become part of a community dedicated to empowering the next generation with essential life skills.
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