This is a challenge for anybody because we’re all good at justifying something being a need when really it’s a want.

Mom, you don’t understand…I NEED an iPhone.  I would rather not have one but apparently my school requires it.  I HAVE TO HAVE IT!

Sure you do, Skippy.

To answer this question, let’s start by figuring out what your needs actually are. 

Do you remember hearing in class about Maslow’s Hierarchy of Needs?  In case you forgot, here are our basic needs for survival: food, water, shelter, and clothing.

(Note it doesn’t say “name-brand clothing”…just plain, basic clothing)

These are things you have to have.  On the most basic level, everything else is a want.

Going to the movies with your friends = want.

Downloading that new album from iTunes = want.

Getting the new “Hello Kitty” backpack for school = up for debate (not really).

So how do you separate needs from wants?  Here are a few practical tips…

• Wait To Buy It – We’ve all purchased something that we just had to have and 3 months later, we have it listed on eBay or Craigslist.  Instead of buying something the moment you see it come out, take a deep breath and wait a little bit.  Wait a few days.  Wait a week.  Maybe even wait a month if it’s really expensive.  That gives you time to come down from the excitement and really evaluate if it’s a need or a want.

• Something Can Be Both A Need AND A Want – We’ve established that food and clothing are both basic needs but there are opposite ends of the spectrum with these items.  You can buy a pair of shoes for $10 or you can spend several hundred bucks for some new kicks.  You can get a box of Mac & Cheese for a few quarters or you can eat steak & lobster at a four-star restaurant for your entire life savings.  Choose wisely!

• The More Expensive It Is, The Less You Probably Need It – The things we need to survive don’t cost a lot of money.  Food.  Water.  Clothing.  The things we want generally cost more.  iPod.  Spring Break trip.  Laptop.

YOUR 2 CENTS: What are your tips for separating needs from wants?

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2. How Much Spending Is Too Much Spending?
3. How Does The Money I Spend Contribute To The Economy?
4. What Should Students Do With Their Money From The Time They Receive It? (Part 3)
5. What Are Some Good Cheap Or Free Entertainment Options?