Needs and Wants
Background Information & Activities

The relationship between needs and wants is an important lesson for your children to learn and understand. A need is something an organism must have in order to survive. For example, people need air, food, water, and shelter. A want is something someone would like to have. For example, bikes, video games, and televisions are all wants; people can survive without them. Encourage your children to think about their needs and wants.

Many people have jobs and work to earn money in order to meet their needs and wants. Explain to your children that people can use their money to buy goods and services. Goods are things that are made or grown and usually something you can see or touch. Have your children look around them and find examples of different goods. Remind your children that crops are goods. A service is work that someone does for someone else. For example, an auto mechanic provides the service of repairing vehicles, a teacher provides the service of instructing students, and a doctor provides the service of monitoring patients health and treating illnesses. Discuss different services that people need and offer. A producer is someone who makes or grows goods or offers services. Farmers, carpenters, librarians, and manufacturers are examples of producers. A consumer is someone who buys goods and services. Have your children identify different items they consume and think about who might have produced them.

Your children should understand that people often want much more than they need. As a result, people must make choices about what they truly need and what they can afford. Offer different scenarios to help your children learn how to make smart choices with money. Should someone buy pet food and groceries or buy a new video game? Children should learn to buy what they need before what they want. Also help children become smart consumers by researching products and learning about where their money goes when they purchase a good or service. Why should you buy products made from recyclable materials? Why should you support local businesses in your community? By teaching the basic principles of economics and instilling responsible consumer skills now, your children will learn how to make smart and globally conscientious choices as adults.

Needs and Wants Teacher Activities – Click Here!

Needs and Wants Family Activities – Click Here!

Needs and Wants Teacher Activities

Penny Harvest

With parental permission, have students save one penny a day and put it into a class piggy bank or jar. Explain that one penny might not seem like a lot of money, but over time you can save a substantial amount. Near the end of the semester or year count the money together. This would be a good opportunity to teach math, such as estimation (How many pennies are in the jar?), counting strategies, counting money, trading up to different denominations of change, or arrays. After totaling the money, have groups of students figure out what the classroom needs, like a new pencil sharpener, stapler, or bottle of soap. Then ask what the class wants, like an ice cream party, new board game, or fancy stickers. Should the class spend the money on what it needs or wants?

Open-Air Market

Remind students that people are both producers and consumers. They can make and grow their own goods or offer services. They can purchase goods and services too. Have students or groups of students brainstorm what goods they can make or grow and what services they can offer. Then organize an open-air market for your class, grade, or whole school. Students can spend time making their goods or finding ways to communicate their services with others. Invite students to set up booths to sell their goods and services. You can give students fake money to use or you can have them barter their goods and services. Review with students that when they barter, they exchange goods and services without using money. You may want to discuss civilizations and societies that use the barter system.

Needs and Wants Around the World

All communities need air, food, water, and shelter. However education, electricity, and running water are considered necessities in many cultures. Some cultures might consider cars “a want” or luxury, while other cultures consider transportation a necessity to get to work. Research wants and needs around the world and compare and contrast them with your student’s own community.

Needs and Wants Family Activities

On a Budget

If possible, allow your child to earn a small allowance each week or month. The allowance could be earned by various services like managing your home’s recycling, walking the dog, or sweeping the kitchen floor. Your child could also earn money by producing goods painting a pictures to sell. Have your child make a list of things he or she needs or wants and research how much they cost. Then help your child create a budget and stick to the budget in order to teach and support effective money-managing skills.

Five Dollars

Five dollars can buy many different goods and services. Have your child brainstorm and research what they can buy with five dollars. You may want to take your child to a grocery store or market to get different ideas of what things cost. For example, for five dollars may buy several pounds of apples, one box of cereal, or 2 bags of potato chips. Have your child compare and contrast the items. How does your family determine needs and wants at the grocery store? Help your child become a smart consumer.