Why Kids Need to Understand Needs vs Wants

In Episode 11 of Teaching Kids About Money with Fexingo, Lucas and Luna break down the concept of needs versus wants—and why it's a critical money lesson for children. Using the example of a family shopping trip where a child wants a $30 video game but needs a new winter coat, they explore how parents can guide kids through the decision-making process. Lucas shares data from a 2025 T. Rowe Price survey showing that 62% of parents say their kids don't understand the difference between needs and wants, and offers a simple 'Pause and Ask' method to build that skill. Luna brings in a study from the Journal of Consumer Affairs showing that children who learn this distinction by age 10 save 40% more by age 18. They also discuss the role of advertising and peer pressure, and how to use real-life examples—like choosing between a brand-name shirt and a generic one—to teach trade-offs. The episode ends with Lucas's 'One Rule for the Store' that families can implement today. Fresh and actionable, this episode is perfect for parents of kids aged 5 to 12. #NeedsVsWants #KidsMoney #FinancialLiteracy #ParentingTips #MoneyLessons #TeachingKids #FamilyFinance #SavingHabits #SpendingDecisions #AdvertisingAwareness #PeerPressure #Allowance #T.RowePrice #JournalOfConsumerAffairs #FexingoBusiness #BusinessPodcast #TeachingKidsAboutMoney #Finance Keep every episode free: buymeacoffee.com/fexingo