Chapter 1: Mindset First – What Is Money?
IN THIS LESSON
By the end of this lesson,
you’ll understand the difference between needs and wants, why that matters when making money choices, and how to start spending with intention — so you don’t blow your budget on snacks and shiny things!
💬 let’s break it down
Have you ever been at the store, holding something shiny or sweet, and heard a grown-up ask, “Do you really need that?”
It’s not to ruin your fun — it’s to teach you something important:
There’s a big difference between a need and a want.
A need is something you must have to live.
A want is something you’d like to have, but you could live without.
needs vs. wants
Needs are things like:
Food 🍽️
Water 💧
A safe place to live 🏠
Clothes to wear 👕
School supplies and tools to learn 📚
Wants are things like:
Video games 🎮
Candy 🍬
Brand-name clothes 👟
Boba drinks 🧋
Toys and collectibles 🧸
wants aren’t bad
It’s okay to want fun stuff! But smart spending means you take care of your needs first, then you can save up and plan for the things you want.
This lesson will help you build that muscle. You’ll learn how to pause before spending, ask the right questions, and make your money go further — while still having fun!
🧠 analogy: needs vs. wants is like packing for a camping trip
Imagine you're going camping. You can only bring a small backpack.
What do you pack first?
✅ A sleeping bag (need)
✅ Food (need)
✅ Water bottle (need)
🚫 A giant stuffed animal (want)
🚫 A second pair of sparkly shoes (want)
If you pack all your wants first, you won’t have room for what you actually need. Same with money! Spend smart so you always have room (and cash) for what matters most.
🤔 critical thinking questions:
Can something be a want and a need? What would make it change?
Why do you think people sometimes spend money on wants before needs?
Have you ever regretted buying something you wanted? Why?
How can you remind yourself to check “need or want” before spending?
✍️ journal entry: “need or want? you decide.”
Make a list of 10 things you’ve bought, asked for, or wanted recently. Then, next to each one, write if it’s a need or a want, and why you labeled it that way.
Optional: Circle the ones that were smart choices and put a star next to one you wish you had skipped!
👨👩👧👦 activity with family or friends: “money choice challenge”
What You’ll Need:
A few fake dollars (or real money, if you’re using allowance)
A table with “store items” (this can be snacks, small toys, pencils, coupons for screen time, etc.)
How to Play:
Each player gets the same amount of money (let’s say $10).
Lay out the items and give each one a price.
Let each person “shop” — but they have to say if their item is a need or a want out loud before buying it.
At the end, compare what everyone chose. Who spent the most wisely?
🎯 What This Teaches: We don’t always need to spend just because we can. And pausing to ask ourselves “need or want?” helps us make smarter choices.
💵 REAL-LIFE PRACTICE: “PAUSE BEFORE YOU SPEND”
This week, every time you get the chance to spend money — whether it’s at a store, online, or even on a vending machine — take a pause and ask:
Is this a need or a want?
Could I save this money instead?
Would I rather use this money for something else later?
If you decide to skip the purchase, write down what you saved instead. At the end of the week, count it up and celebrate your smart choices!
🌟 Bonus Challenge: Create a “Wants List” and save up for one of them using your spend or save bucket.
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