NEEDS AND WANTS
While it may be hard to explain, it is important that children realise the difference between needs and wants. One way to explain is that needs are the things that we must have in order to survive like food, water, clothing, shelter and medical care; wants, on the other hand, are things that we would like to have but are not necessary for our survival. For instance, basic clothing is a need, whereas designer wear is more of a want.
However, both needs and wants cost money and children have to understand the importance of focusing their spending on needs rather than wants.