Skip to content
My Money & Me

Kids / Needs vs wants, saving jars and pocket money

Chapter 1 of 2

Needs and wants

Priya has ₹200 and a long shopping list. Sorting needs from wants helps her decide what to buy first.

My Money & MeUpdated Oct 18, 20265 min

On this page · Chapters in this module
  1. 1Needs and wants
  2. 2The three jars

Priya is ten. Her amma gives her ₹200 to take to the kirana shop near their school in Madurai. The list says: a notebook for maths class, a packet of milk, and bread. On the counter Priya also sees a pack of her favourite chocolate and a shiny new pencil box. Everything together costs ₹260. She has ₹200. What should she leave behind?

What is a need?

A need is something you must have to live, learn and stay safe. Food, clean water, a place to sleep, school books, medicine when you are sick. If you did not have it, something important would go wrong.

What is a want?

A want is something that is nice to have but you would be fine without. The chocolate. The pencil box, because the old one still works. A new cricket ball when you already have one. Wants are not bad. They are just not first.

On the counterNeed or want?Why
Maths notebookNeedPriya cannot do her homework without it
Milk and breadNeedBreakfast for the whole family
ChocolateWantTasty, but nobody goes hungry without it
New pencil boxWantThe old one still closes

So Priya buys the notebook, milk and bread for ₹140. She has ₹60 left. Now she can choose: buy the chocolate today, or put the ₹60 away towards the pencil box. The needs came first, and the choice came after.

TipThe same thing can be a need for one person and a want for another. A phone is a want for Priya, but a need for her amma, who takes tailoring orders on it. Ask: what would go wrong without it?

Try the two questions

  • Do I need this to live, learn or stay safe?
  • If I wait a week, will I still want it?
  • If the answer is no and no, it is a want. Put it on a list and come back later.

Workbook activity

With a parent, walk around your kitchen and your school bag. Pick ten things and sort them into two piles: needs and wants. Then swap roles: let your parent pick five things from their day, like petrol, a cup of tea at the office, or a movie ticket. Do you agree on every pile?

Key takeaways

  • A need keeps you alive, learning and safe.
  • A want is nice but you would be fine without it.
  • Buy needs first, then choose wants with what is left.
  • Waiting a week is a good test for a want.

Check your understanding

  1. 1. Priya has ₹200. Which should she buy first?

  2. 2. A new cricket ball when your old one still works is a...