Insights

Food for thoughts on money and life

Needs and wants have become the pillar of any financial education programmes. If we want to control our spending, before buying something, we should first think whether it is a need or a want. But does that really work? Try to talk about needs and wants to people who live with a few dollars a day- they have to prioritise between needs… and other needs, without any idea if and how much they will earn tomorrow, and what emergencies they may have to pay for. In a workshop, a few years ago, participants classified TV as a need and fruit as a want:  TV was important to get news and fruits were sweet luxury. What about a bike to ride to school? If my family’s income doesn’t allow me to get a bike, it may be a “want”… but if my friends’ parents get a higher income and can afford buying my schoolmate a bike, they consider it a “need”- you can replace bike by uniform, computer, college… how fair is it that things shift from “want” to “need” depending on how much you earn? How do you classify a cell phone? A smartphone? Wedding expenses? Debt? Read further.

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