Needs vs. Wants — Answer Key
Part A: Multiple Choice
Circle the best answer for each question.
1. You have $5. A toy costs $5 and a sandwich costs $3. What happens if you buy the toy?
A) You can also buy the sandwich
B) You cannot buy the sandwich too
C) You get money back for a drink
D) The store gives you both for free
Five dollars is used up by the toy, so no money is left for the sandwich, which costs three dollars.
2. You have $4. You need lunch but want a sticker. Lunch is $4 and a sticker is $1. What is the smart choice?
A) Buy the sticker first
B) Skip lunch and save nothing
C) Buy lunch because it is a need
D) Ask the store for free lunch
Lunch is a need that keeps your body healthy, so buying food comes before buying a fun sticker.
3. A trade-off means you:
A) Get both things you want
B) Give up one thing to get another
C) Pay no money at all
D) Take things without asking
When money is limited, picking one item means you cannot have the other, and that is a trade-off.
4. You have $2. A juice box is $2 and a toy ring is $2. You are thirsty. You should:
A) Buy the toy ring for fun
B) Buy the juice because you need a drink
C) Buy both with only $2
D) Put the money away and stay thirsty
Being thirsty means your body needs water, so a drink is the better choice over a fun toy ring.
Part B: Fill in the Blank
Write the correct answer on each line.
1. When money is limited, you must make a choice.
A choice means picking the most useful item first when you cannot buy everything you see.
2. Giving up one item to get another is a trade-off.
A trade-off is the cost of choosing, because picking one thing means you lose the other choice.
3. Needs should come before wants when spending.
Needs keep you safe and healthy, so spending money on needs first is always a smart plan.
4. If a toy costs more than your money, you cannot buy it.
To buy something, you must have at least the same amount of money as the price shown on it.
5. Before you spend, it is smart to plan.
Planning helps you spend money on needs first and then save or buy wants only if money is left.