(a) Do I really need it? As a consumer it is easy to mix up what we want and what we need. Sometimes we may want something so badly that we actually think that we need it. For example, some of our friends may have the latest gadget and we feel like we must have it too. An important part of learning to be wise with money is knowing the difference between a genuine need and a ‘nice-to-have’ want.
Consumer needs are things that we generally cannot do without, i.e. things that we need in order to survive. Most people have similar basic needs such as food, clothing and accommodation. Utilities such as electricity and transport are also essential for living.
Consumer wants are all the things that we would like to have, but that are really not essential. We could still get on with our lives without them. Lots of items such as toys, gadgets, cosmetics, computer games and jewellery are really just ‘nice-to-have’ wants instead of genuine needs. For instance, if you are thinking about buying some clothing ask yourself the following questions: Is it similar to something you already own? How often will you wear it? If it just sits in your wardrobe, then it is a waste of your money.
