NGPF Activity Bank

Budgeting

COMPARE: Needs vs. Wants

Although online resources and financial gurus will tell you that it’s pretty clear cut for
what qualifies as a need versus a want, in real life it’s often not that clear. For example, if you decide to live in Cleveland
while your family lives in Phoenix and visiting them is a priority for you, then you might consider 4 flights a year a
necessity. On the other hand, your extreme love of scuba diving might make 4 flights a year to Hawaii or Florida seem like
a need, when it’s possibly more of a want.
Part I: Assess Your Values
Assuming that your fundamental needs of housing, clothing, and food have been met and you already have a savings
plan in place, your budget may allow you to spend on a few extras.

1. Review the list below, putting a:

● 1 next to those that are needs for you,
● a 2 next to high priority wants, and
● a 3 next to low priority wants.
● You can leave some blank if they don’t fit into your lifestyle at all
● Fill in the empty boxes with items you value that we haven’t included

# ITEM # ITEM

3 Trendy clothing 1 Personal hobbies (membership fees, equipment,

uniforms, clubs or teams, etc)

3 Non-essential beauty/hygiene or grooming 1 Professional expenses (employment resources,

items/services online course subscriptions, membership fees,
conference attendance, etc)

2 Subscriptions (Netflix, Hulu, Spotify, etc) 2 Holiday and other gift giving

3 Ride-sharing or mobility apps (Uber, Lyft, Bird, 2 Charitable or religious donations

Jump)

3 Vacation/travel 1 Transportation costs (maintenance, car payments,

insurance, public transportation)

2 Electronics (video games, phones, etc.) 1 Cell phone plan

3 Out-of-home entertainment (amusement parks, 1 Dining out

movies, bowling, etc)

Contributing to family income / Giving money 2 Gym membership

2 to family

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 Part II: Plan Your Discretionary Spending
2. Let’s pretend you earn the 2019 average college graduate income and you’re using the 50/30/20 method of
budgeting. You’ll have roughly $900 per month to divide among the categories above. Reflect on the priorities
you’ve set above, and create a budget for the needs and wants you’d like to be able to fulfill each month.

ITEM AMOUNT YOU’LL SPEND

Getting my hair done 50

50
Groceries
20
Phone bill
85
clothes

115
Light bill

170
gas

150
Hanging out with friends amusement parks,
movies, going out to eat

30
Wifi bill
30
Personal hygiene items

200
Spending money
TOTAL $900

Using your “wants” budget above, answer these questions:

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 3. Which of those items would be easiest to give up, if your life circumstances forced you to?
Hanging out with friends

4. Which of those items would be hardest to give up? Why?

Phone, I would need it .

5. How do your values inform your spending decisions in this category?

That I spend the right amount. Not too much of wants more needs .

Part III: Consider This Example

Your cousin graduated from college and got an intro-level job in human resources at a large company in Washington, DC.
Leftover from college, they have one nice suit, a few business appropriate shirts and pants, and one professional pair of
shoes. Your cousin’s job requires them to be in business attire every day for work.

6. Would you consider your cousin’s desire to upgrade their wardrobe a need or a want? Explain why you feel as
you do.
A need, it simply states what she needs to be wearing . the clothes she wear now are has are not suitable for
her workplace and she would be out of dress code .

7. Assume that your cousin decides they need a wardrobe update. What would you feel is an appropriate amount
of business clothing for your cousin to own in order to succeed at their job?
No more than 500. This includes new shoes, bottoms and top and even jewelry

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 8. What should be your cousin’s approach to purchasing their wardrobe updates?
Ask for a loan

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