Needs and wants

Explain the difference between wants and needs. For example, food, shelter, clothes, electricity and transportation belong to human needs category. Designer clothes or designer coffee and soft toys in the shape of popular cartoon characters qualify as “wants”.

Never forget that the kids will be watching their parents spend money on themselves. Make sure that you do not tell the pleading child, “You don’t need that” or “That’s a waste of money” and then go and buy yourself something which clearly falls under the “wants” category.
Let your child know that your first responsibility is to provide for the family’s needs. Only when the “needs” have been satisfied can the family think about spending on other things.