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Needs are things that people
require
to survive, such as food, water, clothing, and shelter.
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Wants are things that people
desire
to have but are not necessary for survival, such as toys, expensive shoes, or the latest electronics.
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Both needs and wants must be purchased with
money
. Sometimes people confuse their wants and needs and spend too much of their money on things they want. Then they do not have enough money for their needs.
- A budget can help people figure out what they can afford. A budget is a plan that lists how much money a person has and all the needs and wants that cost money. This list makes it easy to make sure that all a person’s needs are purchased before the wants.
