Needs, loves, likes, wants

CASH KID

Today I'll explain the needs, loves, likes, and wants budgeting practice. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Needs, loves, likes, and wants

Hey you guys it’s Cash Kid here. Back again with another cash kid podcast episode. Today, we’ll be talking about your Needs, loves, likes, and wants. This is a concept many use when it comes to spending. It’s like a checks and balances tool. But, more about this coming up. The Cash Kid Podcast is underway!

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go sweetie. Whoa, Thanks grandma!

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Do you need it?

Do you love it?

Do you like it?

Do you want it?

These are four simple questions you can ask yourself before spending any money.

It’s a budgeting practice called needs, loves, likes, and wants. This method helps remind you to be more mindful of your spending and help you spend less.

(01:53)

So, first is “needs” which is pretty simple.

That’s my Mom listing our needs, like groceries so we can eat.

A "need" is something that will help improve your health like food and water or will provide safety like clothing and shelter. Now when I say clothing I’m not talking about some super cute designer dress or some $100 shorts you’ll use at the gym. This “Need” concept should be the first question you ask yourself. “Do I need this… Will this help improve my health or keep me safe?” These are questions you can ask yourself.

(2:32)

Next we have our "loves." A love is something that will provide long term enjoyment like 6 months or more. Now a video game console like a switch or Xbox will last you a long time as long as it doesn't break. But a game for it might be a "like." More coming up.

(music)

(3:09)

Ok, that brings us to the question of “Do you like it?”

A "like" is something that brings you short-term enjoyment. For instance, we like to go to the movies, or we like to go to the beach every year.

Now, recently around the time we released this episode, the new Zelda game came out called The Legend of Zelda: Tears of the Kingdom. This is an example of a like. Likes are simply things that give you joy in the moment.

Sometimes we get too wrapped up in our likes and over spend. So, it’s good to stop and ask, “Do I like it?” before buying it.

(3:42)

And that brings us to our last question, “Do I want it?”

Well, let’s be honest, as kids… we “want” a lot of things. We’re always asking our parents for something we want.

(Child reading his list of wants.)

That’s my little brother last week telling my Mom his new wants list. We’re not even sure if some of those things exist, but it’s a good example.

A want provides temporary satisfaction. Like that candy bar you just bought at the concession stand or splurging on a new pair of shoes you saw and thought were cute, when you already have five other similar pairs. Wants basically amount to spending without thinking much about it. Be careful with your wants… they can drain that bank account fast.

(music break)

So, that’s wraps up our discussion on our needs, loves, likes, and wants. Just learn to recognize how you spend your money and slow down to ask yourself those questions before you spend that hard earned cash to make sure it’s worth it.

Thanks for listening. Be sure to subscribe, leave a rating, and come back for more helpful tips and interviews with experts. Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.