[Money Map Fragment #10] The Difference Between 'Want' and 'Need' ~First Money Lessons for Parents and Children to Learn Together, Readable from Age 4~
"Hey, I want that!" "I want this too!"
A child's "wants" are endless. However, money is finite. In this session, we will learn the most important difference when thinking about how to use money: the difference between "Want" and "Need."
■ What is the difference between "Want" and "Need"?
A "Need" is something you would be in trouble without. Examples include food, clothes, a house, and school supplies. A "Want" is something you would be happy to have, but wouldn't be in trouble without. Examples include new toys, snacks, and games.
Neither is "bad." However, the basic order for using money is to secure "needs" first, and then consider "wants."
■ Beware of "wants" disguised as "needs"
"Everyone else has one, so I need it!" "I need it for school!"
This logic that children often use is actually a case where they are disguising a "want" as a "need." You can determine if something is truly necessary by asking, "What would be the problem if I didn't have it?" If they cannot answer specifically, it is highly likely to be a "want."
■ Let's rank your "wants"
When your allowance is limited, it is effective to make a "wish list" and rank them. By listing them as 1) what you want most, 2) what you want second most, and so on, you can see what you truly desire.
Also, if there is something you wanted last month but have forgotten about this month, that is a sign that it "wasn't actually a need."
■ Let's talk with your child
Parent: "If you only had 100 yen today, would you buy bread or candy?"
Child: "Candy!"
Parent: "But what if you hadn't eaten a meal today?"
Child: "...Bread."
Parent: "Exactly. When you are hungry, what you 'need' changes."
→ This helps them realize that what is "needed" can change depending on the situation and that they should think about priorities.
■ Summary: What we learned today
✓ A "need" is something you would be in trouble without; a "want" is something you would be happy to have
✓ When using money, prioritize "needs" first, and "wants" later
✓ You can tell if it's a true need by asking, "What would be the problem if I didn't have it?"
✓ Making a list of what you want and prioritizing them is a smart method
Next time: #11 "Let's make rules for your allowance" ~Stage 2: Management Edition Starts!~
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