VALUES, NEEDS, AND WANTS
VOCABULARY TERMS
Values, needs and wants are the three financial decisions.
Trade-offs and opportunity costs.
- A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual. Examples of values are honesty, family, helping others, education, and financial security. Family, friends, teachers, culture, and media all influence your values.
- A need is an essential, necessity needed for life. Some examples of a need are at least three meals per day, a refrigerator, a warm and safe place to live, and water.
- A want is not necessary but it increases the quality of living your life. Some examples of a want are brand new clothing, a daily soda or coffee, downloading music, new shoes, a computer, and a television.
Trade-offs and opportunity costs.
- An opportunity cost is the benefits you could have received by taking an alternative action.
- A trade-off is giving up one thing for another.
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