Lesson 2 Assessment: Needs vs. Wants

Part 1: Knowledge Check

1. Maya has $90 in her account. She wants a $70 concert ticket, but she needs $35 for transportation to work next week. Which statement is most accurate?

A. She can afford the ticket because she has enough money to pay for it B. She cannot afford the ticket because it would prevent her from covering a need C. The concert becomes a need because her friends are attending D. She should use buy now, pay later so she can do both

2. Jordan needs new shoes because the soles of his current shoes are falling apart. He chooses a limited-edition pair that costs $220 instead of a reliable pair that costs $80. Which answer best describes the purchase?

A. The entire purchase is a need B. The entire purchase is a want C. Replacement shoes are a need, but the premium upgrade is a want D. It is a need because expensive shoes last forever

3. A student buys a $5 energy drink every school day. What is the most financially aware response?

A. Ignore it because $5 is not much money B. Stop buying it immediately because all wants are bad C. Calculate the long-term cost and decide whether the habit is worth it D. Buy two at a time so fewer store trips are needed

4. After receiving her first paycheck, Olivia immediately buys new headphones because she feels like she deserves a reward. What is most likely influencing her decision?

A. A basic survival need B. Excitement and emotional spending C. A transportation requirement D. Investment growth

5. Which statement best explains the difference between being able to pay for something and being able to afford it?

A. If a payment goes through, you can afford the purchase B. You can afford anything that is on sale C. Affording something means you can buy it without failing to cover responsibilities D. Being able to pay and being able to afford always mean the same thing

6. A teammate says, “I need the newest cleats because the best players wear them.” Use the three-question spending check.

Need or want? Why? Can the student afford it? What information would you need? Is the decision based on a reason or a feeling? Explain.

7. Name one purchase a teenager might call a need even though it may be a want or gray-zone purchase.

Purchase: What is the real need underneath it? What is a lower-cost way to meet that need?

Part 2: Real-World Action Challenge

The Five-Purchase Spending Audit

Estimated time: 5–15 minutes. You do not need to spend money.

List five things you recently bought, asked someone else to buy, or seriously considered buying.
Estimate the cost.
Label each as a need, want, or gray-zone purchase.
Identify the trigger or reason behind the decision.

Purchase	Estimated Cost	Need, Want, or Gray Zone?	Trigger or Reason

Choose one purchase and apply the three-question check

1. Is this a need or a want? 2. Could I afford it after covering my responsibilities? 3. Was I buying it for a clear reason or because of a feeling?

Make one realistic adjustment

Examples: wait 24 hours, bring water, pack lunch, remove an item from your cart, pause a subscription, or compare cheaper options.

Reflection Question

Which purchase surprised you the most after you classified it, and what did you learn about your spending habits?

Part 3: Optional Extension Challenge

The True Cost of a Habit

Choose one repeated purchase such as an energy drink, fast-food meal, rideshare, snack, gaming purchase, subscription, or sports supplement.

Purchase or habit: Cost each time: Times purchased per week: Weekly cost: Estimated yearly cost: Weekly cost × 52

Compare the trade-offs

What else could this money support?

Make a decision

Keep it, reduce it, replace it, or stop it.

Beginner Investor Connection

Explain why investing part of this money could be more valuable than spending it automatically.

Part 4: Key Takeaways

A need supports health, safety, responsibilities, or daily functioning.
A want adds enjoyment, convenience, comfort, or status.
The category may be a need while the premium version is a want.
Being able to pay does not always mean you can afford it.
Ask: Is it a need or want? Can I afford it? Is this a reason or a feeling?

Answer Key and Explanations

Question 1

Answer: B. The ticket would stop Maya from covering transportation to work. The payment may go through, but she cannot truly afford it.

Question 2

Answer: C. Safe replacement shoes may be a need. The expensive limited-edition upgrade is optional.

Question 3

Answer: C. The goal is to understand the full cost and decide intentionally, not automatically ban every want.

Question 4

Answer: B. The timing suggests that paycheck excitement and the desire for a reward are driving the purchase.

Question 5

Answer: C. Affording something means the purchase does not prevent you from covering responsibilities or important goals.

Question 6 — Sample Response

The cleats may be a need only if the current pair is damaged, unsafe, or no longer fits. The newest model is likely a want. To judge affordability, you would need the price, available money, and upcoming responsibilities. “The best players wear them” points to status, marketing, or social pressure.

Question 7 — Sample Response

Purchase: Food delivery after school.
Real need: Hunger and food.
Lower-cost option: Eat food at home, pack a snack, or buy a cheaper meal without delivery fees.