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National and State Financial Literacy Standards Alignment: Wants and Needs (K–8 Money Song)
Updated

National and State Financial Literacy Standards | Wants and Needs | Money Song for KidsIntroduction

With over 25 years of experience in the financial literacy education space, our work consistently shows that teaching kids about money is most effective when lessons are simple, engaging, and aligned with what schools are already teaching. This page highlights how the song “Wants and Needs” aligns with national and state financial literacy standards for grades K–8, supporting responsible decision-making, habit formation, and long-term financial well-being.

Helping children build strong money habits starts with understanding how to make good choices. The song “Wants and Needs” teaches one of the most foundational financial concepts kids can learn early: knowing the difference between what we want and what we need—and how that difference affects the choices we make every day.

Song Overview

Song: Wants and Needs
Primary Financial Concept:
Understanding the difference between wants and needs helps children make smarter choices, prioritize what truly matters, and use money wisely.

Key Message:
It pays to know the difference between wants and needs. When children learn to identify necessities first, they build the foundation for thoughtful spending, saving, and long-term financial responsibility.

National Standards Alignment

Council for Economic Education (CEE)

National Standards for Personal Financial Education

Standard 1: Decision Making

Grade Bands: K–2 | 3–5 | 6–8

Effective decision making requires comparing costs and benefits.

How the song aligns:

  • Teaches children to evaluate choices by distinguishing needs from wants

  • Reinforces trade-offs and consequences

  • Encourages thoughtful, intentional decision-making

Standard 2: Money Management

Grade Bands: K–2 | 3–5 | 6–8

How the song aligns:

  • Supports prioritizing needs before wants

  • Reinforces purposeful spending

  • Introduces basic planning and responsibility

Jump$tart Coalition

National Standards in K–12 Personal Finance Education

Financial Decision Making & Money Management

Grade Bands: K–2 | 3–5 | 6–8

How the song aligns:

  • Reinforces responsible spending decisions

  • Helps students evaluate trade-offs

  • Connects everyday choices (food, entertainment, saving, spending) to outcomes

National Financial Educators Council (NFEC)

Core Financial Literacy Framework

Grade Bands: K–2 | 3–5 | 6–8

How the song aligns:

  • Builds financial responsibility and behavioral awareness

  • Encourages children to pause and reflect before spending

  • Supports habit-building through repeated practice

Social-Emotional Learning (CASEL)

Competencies:
Responsible Decision-Making · Self-Management
Grade Bands: K–2 | 3–5 | 6–8

How the song aligns:

  • Strengthens self-control and impulse awareness

  • Encourages thoughtful choice-making

  • Helps students understand consequences of decisions

Standards Alignment by Grade Band

K–2 (Ages 5–7): Basic Awareness & Choice

Big idea: Not everything I want is something I need.

  • Uses clear, relatable examples (books vs. toys, water vs. soda)

  • Builds early awareness of priorities

  • Encourages pausing before choosing

  • Reinforces simple decision-making skills

Grades 3–5 (Ages 8–10): Trade-Offs & Priorities

Big idea: Choosing one thing means giving up another.

  • Highlights trade-offs between wants and needs

  • Encourages thoughtful spending decisions

  • Reinforces planning and prioritization

  • Supports responsible money habits

Grades 6–8 (Ages 11–13): Responsibility & Opportunity Cost

Big idea: My choices have consequences, now and later.

  • Introduces opportunity cost (“What shall I trade for?”)

  • Encourages needs-first thinking

  • Builds self-management and delayed gratification

  • Supports long-term financial responsibility

State-Level Standards Alignment (Selected States)

The song Wants and Needs aligns with financial literacy or economics standards across multiple states:

  • California (CA)
    Grade Bands: K–2 | 3–5
    Primary Focus: Choices, trade-offs, economics

  • Texas (TX)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Personal financial literacy & responsible spending

  • New York (NY)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Economic decision-making

  • Washington (WA)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Financial decision-making & consequences

  • Ohio (OH)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Planning & money management

  • Iowa (IA)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Life skills & responsibility

  • Utah (UT)
    Grade Bands: 3–5 | 6–8
    Primary Focus: Money as a managed resource

  • Wisconsin (WI)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Habit-based decisions

  • Massachusetts (MA)
    Grade Bands: K–2 | 3–5 | 6–8
    Primary Focus: Responsible money use

Why This Song Works in the Classroom

  • Clear, age-appropriate examples

  • Strong alignment with financial literacy and SEL standards

  • Scales naturally from early elementary to middle school

  • Easy to pair with discussion, activities, and real-life scenarios

Bottom line:
Wants and Needs helps children learn that good money choices start with knowing what truly matters.

Download the Standards Alignment PDF

If you’d like a downloadable PDF version of this standards alignment for classroom use, curriculum review, or district adoption, please contact us. We’re happy to provide a printable version that makes it easy to share, reference, and integrate into lessons or program materials.

More Resources Supporting the Song

Additional Songs and Fun Resources

Keep:

Related Reading

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