What Are Needs and Wants - Financial Literacy - أول ثانوي

? Do you spend most of your money on things you want or things you need? BR DO 2 Spending

LESSONS 2.1 What Are Needs and Wants? 2.2 How Do Consumer Behaviors Affect Prices? 2.3 What Are Buying Strategies? 2.4 What Is a Buying Plan? t is important to keep track of not only the money that you earn, but also the money that you spend. In this chapter you will look at how to manage your financial resources to ensure that you are able to buy the things you want, as well as the things you need. You will then consider how customer buying patterns and strategies affect the mar- ket and the price of a product. 45

Link to digilal lesson 2.1 What Are Needs and Wants? www.len.eda.ca Learning Objective Once you have completed this lesson, you should be able to: ⚫ explain the difference between needs and wants explain how financial resources help fulfill needs and wants. Key Terms Needs Wants Disposable income Financial resources Nords things you must trave for Suivival Needs and Wants Every person has needs and wants. It is important to prioritize paying for needs before anything else, as without these you will not be able to live. Common needs are: Wants refers to what people desire for reasons beyond survival and basic needs • food • water clothing • ⚫ shelter Disposable income the income available to spend after basic needs have been paid for ⚫ medical care. Once you have paid for your needs, you can then spend your disposable income on your wants according to priority. Examples of wants might include: • a new phone • ⚫ a video game ⚫ a big-screen TV. Luxury items, which are often very costly, often fill emotional wants rather than physical needs. وزارة التعليم 46 Financial Literacy

The Link Between Resources and Choices Although people's framdal senare limited, their needs and wants are unlimited and growing. Because most people do not have enough financial resources to meet all of their needs and wants, they must make choices. The choices available to a person will be fewer for someone with fewer financial resources. This person may need to spend all of his or her resources to cover basic needs. For a person with more resources, more choices will be available. People who have high disposable incomes can consider buying luxury items they may want. money or other items of value that are used to acquire goods and services LOOKING BHEAD 1. How can you measure whether you are able to meet your financial needs now and in the future? 2. Imagine you are in charge of planning a trip for your class Your teacher will give you a budget and some options. Work out the best trip you can afford with the budget available. dantry she needs me wants in this picture A7

وزارة التعليم 48 Financial Literacy Review Questions Choose the correct answer. 1. Which of the following is an example of a need? a. a new laptop b. a new phone Ca bottle of water d. a video game 2. It is more important to spend your money on wants than needs. a. Live b. false 3. Luxury items are often used to hill emotional needs. a. live b. false 4. Financial resources are unlimited. a. true b. false 5. Which of the following is an example of what disposable income may be spent on? a. shelter b. medical care c. a new phone d. Water 6. Which of the following would increase someone's financial choices? a. having a low-paid job b. high cost of basic needs c. earning a pay rise at work d. losing your job