GRAB A PENCIL, LET’S HAVE SOME FUN!
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Knowing the difference between needs and wants can help you become a smart spender. Needs are things that help us live, like food and clothes. Wants are things that you buy for fun. Look at the items below and circle if it’s a need or want. NEED ice cream
NEED clothes
NEED Soda
NEED
Fancy car
WANT NEED
WANT
candy
WANT NEED
WANT
A house
Help Cito reach his needs of fruits & veggies. Don’t get tempted by the wants!
NEED
WANT
A bed
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Kids Activity 2 maze
Kids Activity 1 Needs vs. Wants
WANT NEED
WANT
bicycle
WANT
present
Financial Literacy Month
Weekly activities to sharpen your financial savvy!
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Week Two Needs vs. Wants The 50/30/20 rule can help you balance spending between needs and wants while still keeping your savings goals on track by dividing your monthly income as follows:
Needs • • • • •
Financial Goals
Groceries Insurance Rent/Mortgage Transportation Utilities
• • • •
4
THE INDEPENDENT
Emergency Fund Long-term Savings Repaying Debit Retirement
GOALS 20%
NEEDS 50%
WANTS 30%
APRIL 8, 2021
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adult Activity 50/30/20 Rule
Wants
• Dining Out • Entertainment • Hobbies
INDEPENDENT.COM
Bank Statement Challenge: Review a recent bank/credit card statement to see how close you are to the 50/30/20 rule. Use highlighters to determine what items on your statement are needs, wants or goals. Coffee
-$3.50
Groceries
-$125.30
Gas
-$32.00
Coffee
-$3.50
Streaming Service
-$7.99
Drive-In Movie
-$42.75
Transfer to Savings Account
-$150.00
If you’re spending over 30% on wants, identify opportunities to make small changes. For example, reduce buying coffee from 5 times a week to 2 times a week.
Want more activities? Use the QR code or visit montecito.bank/FinLit