Needs vs Wants. . .Manage your money and your life

In a capitalist society, money can mean everything. There are intricate marketing systems designed to separate you, the consumer, from your hard-earned money. The people who create these systems are expert marketers. Have you ever walked into a store for one item and came out with much more? Or searched for an item online and were later inundated with ads for the same product? Marketers know how to influence your purchasing decisions so that you desire their product -- or are willing to open your wallet -- to pay for it.

If you’re struggling with whether to buy the latest designer outfit or smartphone instead of paying your rent or mortgage, you may be responding to what marketers want you to respond to rather than what you need.

When we understand the basic difference between our needs and wants, we are more able to avoid falling prey to savvy marketers and can hold onto our money, spending it wisely.

Needs are those things we must have to survive. Food, water, clothing, and shelter would all be considered needs. Wants, on the other hand, are what we desire to have, and they often bring us some form of short-term pleasure. Designer clothing and expensive jewelry are desirable but not essential to survive.

As a smart consumer, it’s important to stay focused on your needs versus your wants. Develop a budget that helps keep you on track. Such a plan will address your needs and assist you in saving for special items that you desire.

At ABEP, we recommend visiting the National Credit Union Association’s website to learn more about how to budget your money:
https://www.ncua.gov/consumers/financial-literacy-resources