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Needs vs. Wants
Home » College Life » College Budgeting » Needs vs. WantsIt is necessary to distinguish between your needs and wants. Many struggle with this step as they try to justify why a want is actually a need when it isn’t. Knowing the difference shows you where your money should go first, towards your needs, and then second, toward your wants. Get a handle on this before you find yourself in trouble.
• Need: Needs are things that you have to have in order to survive such as food, shelter, and clothing.
• Want: Wants are things you would like to have, but are not necessary for survival. Wants can be variations of needs. For example, you may need to purchase a new computer for school but it is a want to purchase one that comes with a lot of extra programs that are not necessary for you to function.
• Warnings: It is fine to purchase wants when you have the finances to support it, but be cautious to not purchase something you desire to have if it is going to alter your goals and place you into debt.
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