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What is the difference between a financial need and a want?

Last Updated: October 27, 2008

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A need is something that you are required to have in order to meet the basic requirements of life. A want is everything else. In other words, wants are things that are nice to have but are not necessary.

Here are a few examples. A need is a car or some other form of transportation, such as a public bus, to get back and forth to work in. A want is a fancy, high-priced sports car. Similarly, you need warm clothing, including a coat, to wear during the cold winter months. A want would be a high-fashion brand label coat with a matching high price tag.

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