Teaching children to tell wants from needs: a key step in financial education
08 February, 2024 • Par Natacha Langlois
In a world of fast consumption and instant gratification, one of the most valuable financial lessons we can teach our children is surely the difference between a want and a need. This skill goes beyond better money management; it also lays the foundation for a more balanced and mindful life.
Understanding and explaining the basics
- Give a clear definition of what a need is and what a want is:
A need is something essential to our survival and well-being, such as food, shelter and clothing. A want, on the other hand, is something we would like to have but that isn't essential.
- Keep the dialogue open: take the time to have regular conversations about this topic during your everyday activities or when planning leisure activities.
Educational strategies
- Use role-playing: since children learn more through play, act out situations in which they have to choose between a want and a need, letting them understand the consequences of each choice.
- Include them in managing the family budget: involve children in your planning, pointing out in particular which spending items relate to needs and which relate to wants.
Hands-on learning
- Give them a weekly allowance and, while letting them make their own choices (even if it leads them to make mistakes!), guide them so they decide wisely how to spend it, clearly distinguishing between wants and needs.
- Teach them to save: encourage them to save up for something they truly want, teaching them the value of money and delayed gratification.
Everyday examples
- While you're grocery shopping with your child, take the time to talk together about the items in your cart and sort them into needs and wants.
- Use ads as examples to show how the media push us to consume wants rather than real needs.
Teaching children the difference between wants and needs is a crucial part of financial education. It not only helps them make better financial decisions, but also develop a critical eye when it comes to consumption. By guiding them through these lessons, we prepare them to become financially savvy and responsible adults!
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Put these tips into practice
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