Standards-Aligned Financial Literacy Lesson Plans on Money Management and Making Good Money Choices. Featured Resource: Song — Wants and Needs
Core Concept Across All Grades:
Knowing the difference between wants and needs helps you make smarter money choices and manage your money effectively.
K–2 Lesson Plan
Grade Band: K–2 (Ages 5–7)
Theme: Basic Awareness & Choice
Big Idea
Not everything I want is something I need.
Learning Objective (Student-Friendly)
“I can tell the difference between wants and needs.”
Standards Alignment
CEE – Decision Making: Simple choices and consequences
CEE – Money Management: Prioritizing essentials
Jump$tart – Financial Decision Making: Responsible choices
CASEL: Self-management, impulse awareness
Materials
Picture cards or simple drawings (food, water, toys, games, clothes)
Two labeled areas: WANTS and NEEDS
Lesson Flow (15–20 minutes)
1. Warm-Up Conversation (3 minutes)
Ask:
“Do you want ice cream?”
“Do you need water?”
Teacher script:
“Some things help us live and stay healthy. Other things are fun, but not necessary.”
2. Listen & Sort (5 minutes)
Play Wants and Needs.
As the song plays, hold up pictures and have students point to:
Needs for essentials
Wants for extras
3. Guided Discussion (5 minutes)
Ask:
“Can something be a want and still be fun?”
“Why do needs come first?”
Key takeaway:
“Needs help us live. Wants are nice to have.”
4. Practice Activity (5 minutes)
Students sort picture cards into WANTS or NEEDS.
Reinforce:
“Good choices start with knowing the difference.”
Assessment (Informal)
Students can:
Identify a want and a need
Explain why needs come first
Take-Home Connection
“Talk with an adult about one want and one need you notice today.”
Grades 3–5 Lesson Plan
Grade Band: 3–5 (Ages 8–10)
Theme: Trade-Offs & Priorities
Big Idea
Choosing one thing means giving up another.
Learning Objective
Students will explain how identifying wants and needs helps them make better spending decisions.
Standards Alignment
CEE – Decision Making: Evaluating trade-offs
CEE – Money Management: Purposeful spending
Jump$tart – Financial Decision Making: Prioritization
NFEC: Responsible behavior
CASEL: Self-control, accountability
Materials
Chart paper or board
Simple spending scenarios
Lesson Flow (20–25 minutes)
1. Warm-Up Question (5 minutes)
Ask:
“If you spend money on one thing, what happens to the rest?”
Introduce:
“That’s called a trade-off.”
2. Song Analysis (5 minutes)
Play the song.
Ask:
“What examples of wants and needs did you hear?”
“Why is it important to know the difference?”
Write on board:
Needs first → Wants later → Smarter choices
3. Scenario Activity (10 minutes)
Present scenarios:
Buying snacks vs. saving for lunch
New game vs. school supplies
Ask:
“Which is the need?”
“What would you give up?”
Discuss:
“Choosing is part of being responsible.”
4. Reflection (5 minutes)
Students complete:
“A need I have is…”
“A want I can wait for is…”
Assessment
Students can:
Identify trade-offs
Explain why needs should come first
Take-Home Extension
“Notice one trade-off you or your family makes this week.”
Grades 6–8 Lesson Plan
Grade Band: 6–8 (Ages 11–13)
Theme: Responsibility & Opportunity Cost
Big Idea
My choices today affect my options tomorrow.
Learning Objective
Students will analyze how prioritizing needs over wants supports long-term financial responsibility.
Standards Alignment
CEE – Decision Making: Costs, benefits, and consequences
CEE – Money Management: Intentional spending
Jump$tart – Financial Decision Making: Opportunity cost
NFEC: Behavioral awareness
CASEL: Self-management, foresight
Materials
Scenario comparison sheets
Optional reflection worksheet
Lesson Flow (30 minutes)
1. Opening Question (5 minutes)
Ask:
“Why is it sometimes hard to say no to something you want?”
Discuss impulse and emotions.
2. Song as a Thinking Tool (5 minutes)
Play the song.
Ask:
“What happens when wants come before needs?”
“How does this affect future choices?”
Introduce:
“Opportunity cost means giving something up.”
3. Scenario Comparison (10 minutes)
Compare:
Student A spends on wants first
Student B covers needs first and plans
Ask:
“Who has more options later?”
“Who feels more confident?”
Connect to:
Saving
Budgeting
Avoiding future stress
4. Personal Application (10 minutes)
Students write:
One want they often choose
One need that should come first
One strategy to pause before spending
Assessment
Students can:
Explain opportunity cost
Connect wants vs. needs to long-term outcomes
Real-World Extension
Tie to:
Allowances or part-time work
Budgeting decisions
Preparing for credit and debt topics
Teacher Notes (All Grades)
Avoid labeling wants as “bad”
Emphasize choice and awareness
Reinforce pausing before spending
Pair with budgeting and saving lessons for reinforcement
Bottom Line
Wants and Needs helps children understand that:
Good money choices begin with knowing what matters most—and choosing thoughtfully.
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