💰 Ages 5–7:
Needs vs Wants
Learning About Simple Needs and Wants
Welcome to the Money Explorers stage—where curiosity meets coins and learning about money becomes an exciting new adventure!
At this age, children are beginning to understand the world around them through everyday experiences.
It’s the perfect time to introduce the basic concept of "needs" versus "wants" in a fun, age-appropriate way that builds financial awareness early on.
💡 What Are Needs and Wants?
We all spend money on different things, but not everything we spend money on is equally important.
For young children, understanding the difference between needs and wants helps them start thinking about smart choices.
- Needs are the things we must have to live—like food, water, clothing, and a safe place to live.
- Wants are the extra things we’d like to have—like toys, ice cream, or a new video game.
🧠 How to Teach This Concept
Make learning interactive and fun by using games, storytelling, and real-life examples!
✅ Fun Learning Ideas:
- Sorting Game: Needs vs Wants
Use picture cards of everyday items—an apple, a toy, shoes, a bicycle, lollies, a bed—and ask your child to sort them into two piles: Needs and Wants.
- Story Time with a Twist
Read a storybook where a character makes choices (like buying food or a toy). Pause and ask, “Was that a need or a want?”
- Grocery Shopping Helpers
Take them on a grocery shop and let them point out items that are needs (like milk) and wants (like chips). This helps them see how money choices happen in real life.
🐨 Real-Life Example (Ozzy Style!)
"Ozzy the Koala has ten dollars.
He wants to buy a lunchbox for school and a chocolate bar. But the lunchbox is broken, and he really needs a new one. What should he spend his money on first?”
- This kind of simple storytelling helps kids apply the concept of prioritising needs over wants in a way that sticks.
🪙 Key Money Lessons for Ages 5–7
- Money is Limited – You can’t buy everything at once.
- Needs Come First – Sometimes, we must choose the most important thing.
- Wants Are Okay Too – It’s okay to spend on fun things sometimes—but only after our needs are met.
🗣 Tips for Parents and Educators.
- Use everyday moments (meals, shopping, birthdays) to talk about needs and wants.
- Keep the language simple: “We buy food because we need it to stay healthy. We buy lollies because we want a treat sometimes.”
- Reinforce the idea of saving up for special wants—introduce a piggy bank and let kids save for something small but exciting.
📚 Resources for Little Money Explorers
Printable Activity Sheets: Colour-in worksheets for sorting needs vs wants
Interactive Videos: Short animations where kids help characters make spending choices
Free Mini-Piggy Bank Template: A fun DIY craft to encourage saving
🚀 The Goal at This Stage
By the time your child moves beyond the Money Explorers stage, they’ll start to recognise that money is used to make choices—and that some choices are smarter than others.
It’s all about planting the seeds of financial understanding through simple, meaningful conversations.
🌱 Next Step on the Money Adventure.
Once you've learned the difference between needs and wants, you're ready to take the next step:
“Earning Money”
– Learn how people get money through jobs, chores, or even helping at home!
But before we do that, here's some fun games you can play!
