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Standards-Aligned Financial Literacy Lesson Plans (Grades K–8): Money Word — Need
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Standards-Aligned Financial Literacy Lesson Plan (Grades K–8): Money Word — Need and WantsLesson Plans

Dictionary Term Focus: Need

Core Concept Across All Grades

A need is something essential for living, learning, or staying safe. When children learn to identify needs, they build skills to prioritize spending, make thoughtful choices, and take care of what matters most first.

K–2 Lesson Plan

Grade Band: K–2 (Ages 5–7)

Big Ideas

A need is something I must have to live or stay safe.
Needs come before wants.
I can use money to take care of my needs first.

Learning Objectives

Learners can:

  • Recognize and understand the word need

  • Explain that a need is something necessary for living, learning, or safety

  • Identify simple examples of needs

Standards Alignment

  • Council for Economic Education (CEE): Decision Making

  • Jump$tart Coalition: Financial Decision Making

  • National Financial Educators Council (NFEC): Responsibility and awareness

  • CASEL: Self-Management, Responsible Decision-Making

Materials

  • Dictionary definition of Need (kid-friendly version)

  • Picture cards showing needs and wants

  • Play money

Lesson Flow (15–20 minutes)

1. Word Introduction & Sound Familiarity (2 minutes)

Teacher says:
“Today’s word is need.”

Have students:

  • Listen to the word

  • Say the word together: “Need.”

  • Say it once more slowly: “Need.”

Teacher uses the word in simple sentences:

  • “I need food to eat.”

  • “I need a coat to stay warm.”

Explain:
“Today we are going to learn what the word need means.”

2. Simple Definition & Meaning (3 minutes)

Teacher says and displays the definition:

“A need is something you must have to live, learn, or stay safe.”

Have students repeat the sentence together once.

Teacher gives a concrete example:

  • “Food is a need.”

  • “A toy is not a need.”

3. Warm-Up Conversation: Everyday Needs (3 minutes)

Ask:

  • “What are some things you need every day?”

  • “What helps you stay safe or learn?”

Reinforce:
“Needs help take care of us.”

4. Bridge to Money Choices (3 minutes)

Teacher says:
“People use money to take care of their needs.”

Ask:

  • “What happens if we don’t pay for our needs first?”

  • “Why do needs come before wants?”

Offer examples if needed:

  • “Buying food”

  • “Paying for a place to live”

  • “Getting school supplies”

Reinforce:
“Taking care of needs first helps everything else work better.”

5. Read & Discuss the Definition (4 minutes)

Read the kid-friendly dictionary definition of need again.

Ask:

  • “Can needs wait?”

  • “Are needs more important than wants?”

Key idea to reinforce:
“Needs come first.”

6. Guided Practice (3 minutes)

Show picture cards and ask:

  • “Is this a need or a want?”

  • “Do we need this to live or stay safe?”

Students respond using the sentence frame:
“This is a need.”

7. Practice Activity: Need First (3–4 minutes)

Students act out:

  • Seeing two items (one need, one want)

  • Choosing the need first

Teacher reinforces:
“Needs come before wants.”

Assessment (Informal)

Students can:

  • Explain what a need is

  • Identify an example of a need

Take-Home Connection

“Talk with someone at home about one need your family takes care of every day.”

Grades 3–5 Lesson Plan

Grade Band: 3–5 (Ages 8–10)

Big Idea

Needs are essential, and meeting needs first helps guide smart money choices.

Learning Objectives

Students can:

  • Explain the meaning of the word need

  • Describe the difference between needs and wants

  • Explain why needs usually come before wants

Standards Alignment

  • Council for Economic Education (CEE): Decision Making

  • Jump$tart Coalition: Financial Decision Making

  • National Financial Educators Council (NFEC): Behavioral awareness

  • CASEL: Self-Control, Reflection

Materials

  • Dictionary definition of Need (kid and grown-up versions)

  • Scenario cards (need vs. want situations)

  • Chart paper or board

Lesson Flow (20–25 minutes)

1. Word Reintroduction & Meaning Check (4 minutes)

Teacher says:
“Today’s word is need.”

Ask:

  • “How would you explain a need in your own words?”

Read the kid-friendly definition.
Invite students to restate it.

Reinforce:
“A need is something important for living or learning.”

2. Warm-Up Question (4 minutes)

Ask:

  • “Why do people take care of needs before wants?”

List responses.

3. Read & Analyze the Definition (5 minutes)

Read the grown-up definition.

Ask:

  • “What problems happen when needs are ignored?”

  • “How do needs affect spending choices?”

Write on the board:
Need → Priority → Choice

4. Scenario Activity (8–10 minutes)

Present scenarios and ask:

  • “Which is the need?”

  • “What happens if the want is chosen first?”

Reinforce:
“Needs guide priorities.”

5. Reflection (4–5 minutes)

Students complete:

  • “One need I must take care of is…”

  • “Taking care of needs helps because…”

Assessment (Informal)

Students can:

  • Define a need

  • Identify needs vs. wants

  • Explain why needs come first

Take-Home Extension

“Notice one need your family pays for this week.”

Grades 6–8 Lesson Plan

Grade Band: 6–8 (Ages 11–13)

Big Idea

Identifying needs helps prioritize spending and supports responsible money management.

Learning Objectives

Students can:

  • Clearly define the word need

  • Analyze how needs influence spending decisions

  • Explain how prioritizing needs supports financial stability

Standards Alignment

  • Council for Economic Education (CEE): Decision Making

  • Jump$tart Coalition: Financial Decision Making

  • National Financial Educators Council (NFEC): Informed financial behavior

  • CASEL: Self-Management, Goal Setting

Materials

  • Dictionary definition of Need

  • Scenario comparison worksheet

  • Optional budget-priority worksheet

Lesson Flow (30 minutes)

1. Word Reintroduction & Precision Check (5 minutes)

Teacher says:
“Today’s focus word is need.”

Ask:

  • “How would you define a need?”

  • “Why do needs matter more than wants in budgeting?”

Refine definitions together.

2. Opening Question (5 minutes)

Ask:

  • “What happens when people spend on wants before needs?”

Discuss consequences and trade-offs.

3. Definition Discussion & Framing (5 minutes)

Ask:

  • “How do needs shape priorities?”

  • “Which needs change as we grow older?”

Connect to:

  • Housing

  • Food

  • Education

  • Health

4. Scenario Comparison (10 minutes)

Compare:

  • Paying for needs first

  • Spending on wants first

Ask:

  • “Which approach leads to more stability?”

  • “Which creates stress or problems?”

5. Personal Application (5 minutes)

Students write:

  • One need they are responsible for now or soon

  • One way prioritizing needs helps their future

  • One habit that supports meeting needs

Assessment

Students can:

  • Define needs clearly

  • Explain how needs guide spending

  • Connect needs to financial stability

Real-World Extension

Connect to:

  • Budgeting

  • Goal setting

  • Wants vs. needs decision-making

Teacher Notes

  • Keep examples age-appropriate and culturally sensitive

  • Avoid shame or comparison

  • Reinforce needs as priorities, not restrictions

  • Pair with dictionary lessons for Want, Spend, Save, and Budget

Bottom Line

The word Need helps children understand what is essential and why priorities matter. When students learn to identify needs and take care of them first, they build habits that support stability, confidence, and smarter money choices.

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