TOPIC
Discretionary Spending Toys Entertainment Dining OutMY PROGRESS
Pug Score
0%
Getting Started
"Let's build your foundation!"
Best Streak
0 in a row
Study Points
+0
Overview
Practice
Read
Quiz
Next Steps
Get Started
Get unlimited access to all videos, practice problems, and study tools.
Back to Menu
Topic Progress
Pug Score
0%
Getting Started
"Let's build your foundation!"
Best Practice
No score
Read
Not viewed
Best Quiz
No attempts
Best Streak
0 in a row
Study Points
+0
Overview
Practice
Read
Quiz
Next Steps
Read
Toys, Entertainment & Dining Out: Wants vs. Needs
You will learn that toys, entertainment, and dining out are wants. You will also learn the difference between wants and needs.
What Are Needs and Wants?
You have things you need and things you want. A need is something you must have to stay safe and healthy. A want is something fun that you enjoy but do not need to survive.
Food, water, shelter, and clothing are needs. Toys, games, and eating out are wants. You can learn more about basic needs by visiting Human Basic Needs: Water, Food, Shelter and Emotional Security.
Toys Are Wants
A toy is something fun to play with. You enjoy toys, but you do not need them to stay alive. Toy cars, dolls, stuffed bears, and puzzles are all wants.
You can live without a toy. You cannot live without food or water. That is what makes toys a want!
Entertainment Is a Want
Entertainment means fun activities you do for enjoyment. Going to a movie, a circus show, mini-golf, a water park, or a bouncy castle are all entertainment. These are all wants.
You do not need entertainment to stay safe or healthy. It is fun, but it is extra spending. Spending money on fun activities like these is called discretionary spending.
Dining Out Is a Want
Dining out means eating at a restaurant instead of at home. You need food to live, but you can eat food at home. Choosing to go to a restaurant is a want.
Ordering pizza, buying ice cream, or eating dinner out are all wants. Your family can make food at home instead. Eating out is an extra, enjoyable spending choice.
Saving vs. Spending on Wants
When you have money, you can spend it or save it. Saving means keeping your money instead of spending it. Spending money on toys, treats, and fun activities is discretionary spending.
It is good to think before you spend. You can ask yourself: is this a need or a want?
Key Terms and Definitions
Need: A need is something you must have to stay safe and healthy. Food, water, shelter, and clothing are needs. You cannot survive without your needs.
Want: A want is something you enjoy but do not need to survive. Toys, games, movies, and dining out are wants. Wants are fun extras!
Discretionary Spending: Discretionary spending is when you spend money on wants. Buying a toy, going to a movie, or eating at a restaurant are examples of discretionary spending. It is extra spending on fun things.
Entertainment: Entertainment is a fun activity you do for enjoyment. Movies, circus shows, water parks, and mini-golf are entertainment. Entertainment is always a want, not a need.
Dining Out: Dining out means eating a meal at a restaurant. You need food, but you can eat at home. Dining out is a want because it is an extra spending choice.
Saving: Saving means keeping your money instead of spending it. You can save money in a jar or a piggy bank. Saving helps you have money for later.
Treat: A treat is a special extra you enjoy, like ice cream or a birthday cake. Treats are wants. You do not need a treat to stay healthy or alive.
Practice What You Know
Look at things around you. Can you tell if each one is a need or a want? Try sorting items like a coat, a toy car, water, and a video game.
Remember: if you need it to stay safe and healthy, it is a need. If it is just for fun, it is a want! You can also explore Making Choices to practice deciding between needs and wants.
What You Already Know
You already know about basic needs like food, water, and shelter from Human Basic Needs: Water, Food, Shelter and Emotional Security. That knowledge helps you understand why toys and dining out are wants.
You can also learn how families work to meet their needs and wants by visiting Working to Meet Needs and Wants in Families and Communities.
Related Topics and Connections
This topic connects to many other important ideas you will learn about!
You learned about basic needs in Human Basic Needs: Water, Food, Shelter and Emotional Security. That topic helps you understand what a need really is, so you can tell it apart from a want.
You can also learn how families and communities work to get their needs and wants in Working to Meet Needs and Wants in Families and Communities. This shows you how people earn money to pay for both needs and wants.
After this topic, you will be ready to learn about Making Choices and Making Simple Decisions. These topics help you decide how to spend your money wisely.
You will also explore Introduction to Money to learn what money is and how it is used. You can discover Types of Businesses and Community Resources to see where people spend their money. Later, you will even learn about Banking and Financial Institutions where people save their money!