What this guide is about
A need is something you can't do without. A want is something you would like. Some things are both, depending on the situation. Knowing which is which helps you make smarter choices with your money — and helps your family too.
The simple version
You probably learned this in school already, but let's start there.
- Needs are things people must have to live a normal life: food, water, a place to sleep, clothes for the weather, going to school.
- Wants are things people would like but could live without: video games, sweets, a fancy backpack, days out, the third pair of trainers.
Grown-ups have to make sure all the needs are paid for first. Then if there's money left over, it can go to wants and saving.
When something is both
Here's where it gets interesting. Some things flip between need and want.
| Thing | Sometimes a need... | Sometimes a want... |
|---|---|---|
| A coat | You have one and it's winter | Buying a new one when yours still fits |
| Trainers | Yours don't fit any more | You want the new colour |
| A phone | Walking home alone, parents want to reach you | The latest model when yours still works |
| Food at a café | You're out all day, need to eat | Stopping for ice cream when there's lunch at home |
| School uniform | For school | The expensive brand vs the supermarket one |
The "thing" isn't a need or a want by itself. The situation decides which it is.
A useful question to ask
When you really want something, try asking yourself:
- Would I be OK without it? If yes, it's a want.
- Could I wait a month? If yes, it's probably a want.
- Is there already a similar thing at home? If yes, it's a want.
- Will I still care about it in 3 months? If you're honestly not sure, it's a want.
None of this means wants are bad. They're not! Wants are part of life and they're part of why we have money in the first place. The point is just to know which is which, so you can decide how much to spend on each.
When money has to choose
Imagine a family has £100 left this week after all the bills are paid.
Here are some things they could spend it on:
- £40 for school shoes that don't fit anymore (need)
- £30 for a Saturday family lunch out (want)
- £25 toward a holiday next year (want, but planned)
- £15 for a new board game (want)
- £60 saved for unexpected things like the boiler breaking (need, but later)
That adds up to £170 — more than £100. So someone has to decide what to leave out.
Most grown-ups would buy the school shoes first (real need now), put a bit in savings (future need), and maybe save the lunch and game for next week. That's budgeting in real life.
You can do this with your pocket money too
Your pocket money is small money, but the same idea works. Try this:
- Get a piece of paper.
- Write down 3 things you'd like to buy soon.
- Next to each, write "N" for need or "W" for want.
- Look at them. Which would you buy first? Which would you wait on?
If you do this once a month, you'll start to notice your money lasts longer and you actually get the things you wanted most.
For teachers: curriculum links
- England — PSHE Association KS2 L17 (managing money)
- England — Maths KS2 (money calculations, comparisons)
- England — Citizenship KS2 (rights and responsibilities)
- Wales — Curriculum for Wales Progression Step 2-3 (HWB AoLE)
- Scotland — Curriculum for Excellence MNU 2-09a (money), HWB 2-21a
- NI — PDMU KS2, Mathematics KS2
Full mapping in the curriculum map.
UK Tax Drag (2026). Needs and wants — going a bit deeper. Ages 8–9 guide. Available at: https://kids.uktaxdrag.co.uk/ages-8-9-needs-vs-wants.html
Curriculum mapping: see UK Financial Education Curriculum Map (Version 1.0).