Wants Vs Needs

I feel part of the reason some people are in the situations they are in concerning money is not distinguising the difference between wants and needs.

Need is defined as something without which your daily living would be impossible, or very difficult.

A want is something that if you had, you'd be happier, but if you didn't, you could live without it.

Wants and needs are different for all people. When looking at your financial situation you have to decide if you are willing to give up something else to afford something that you want and may not necessarily need.

I also feel it is important to teach children this difference. That they have to decide what they really need and they may not be able to get everything they want.