November 5, 2024
Financial Literacy—Needs and Wants | Learn about needs, wants, and opportunity costs
 #Finance

Financial Literacy—Needs and Wants | Learn about needs, wants, and opportunity costs #Finance


foreign Literacy for kids part one needs and wants have you ever had to decide between something you want and something you need do you know the difference between a need and a want no never fear Frankie text-decoration: none;">Finance is here determining the difference between a need and a want can help us become better at practicing financial literacy let’s start with needs a need is something that is a necessity meaning you need it to survive like food water shelter and Basic clothing

a wand on the other hand is something that would be fun to have but you can live without for example stuff used for recreation like toys or games or that new expensive pair of sneakers that your favorite athlete wears most of the financial decisions you will make involve needs or wants which is why

understanding the difference is so important foreign if you are deciding between whether you will eat today or whether you will buy a new CashNews.co game the decision probably seems simple I’ll take the food please but sometimes you will have to choose between two or more wants this is

called an opportunity cost and opportunity cost is the cost of missing out on the option you did not pick let’s use Frankie as an example Frankie wants to buy a new pair of rollerblades which cost 85 dollars she has earned forty five dollars from mowing her neighbor’s lawn and running

her own lemonade stand her grandmother gave her twenty dollars for her birthday she finds out that the rollerblade she wants will go on sale for 65 dollars for one day only on Friday later that day Frankie’s best friend invites her to go see the latest superhero movie at the movie theater

with some friends on the same Friday the rollerblades will be on sale the movie popcorn and soda will cost around twenty dollars what should Frankie do buy the rollerblades or go to the movie if she chooses the rollerblades she won’t have enough for the movie with her friends on the other

hand if she chooses to go to the movie Her opportunity cost is the rollerblades not being on sale anymore which means she will not have enough money to buy them hmm Frankie must decide what works best for her buying the rollerblades on sale or the movie with her friends she also must decide if she

wants to spend all 65 dollars of her saved money or just part of it these decisions are personal and the consequences are not life-threatening it’s about choosing which you value the most when you decide rollerblades or friends what would you choose and why the next time you are deciding

between two or more costs try making a list of pros and cons and go from there before you know it you will be making financially responsible decisions using your fabulous financial literacy skills hope you had fun learning with us visit us at learnbrite.org for thousands of free resources and

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