What defines a 'want'?

A 'want' is defined as an item not required for survival, which accurately encompasses the concept of wants versus needs in financial literacy. This distinction is crucial because wants enhance our quality of life and provide enjoyment, but they are not essential for basic functioning or health, which falls under the category of needs. Recognizing the difference allows individuals to prioritize their spending effectively, ensuring that they cover their essential expenses before allocating funds toward discretionary purchases.

In the context of financial planning, understanding wants helps people manage their budgets better, avoiding overspending on non-essential items which can lead to financial strain.