Teaching Children the Difference Between ‘Needs’ and ‘Wants’

April 16th, 2026 Posted in kids and money, learning about money, Parent Advice
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“But I need it!”

If you are a parent, you have likely heard this phrase shouted in a toy shop or whispered urgently in front of a cereal box. To a child, the desire for a new LEGO set or a chocolate bar feels just as vital as the need for a warm coat or a healthy dinner.

Distinguishing between a Need (something essential for life and health) and a Want (something that would be nice to have) is the cornerstone of financial emotional intelligence. At The Financial Fairy Tales, we believe that mastering this distinction is the first step toward a life of freedom and following one’s bliss.

The “Balloon” Analogy

Imagine a hot air balloon.

•The Needs are the basket and the burner. Without them, you can’t fly. These are things like food, a safe home, warm clothes, and medicine.

•The Wants are the colourful decorations on the balloon. They make the journey more fun and beautiful, but you can still fly without them. These are toys, treats, and the latest gadgets.

Why the Distinction Matters

When children understand this difference, they move from being “impulse buyers” to “intentional savers.”

1. Prioritisation: They learn to spend on what matters first.

2.Gratitude: They appreciate their “wants” more when they realise they are extras.

3.Resilience: They learn that they can be happy even if they don’t get every “want” immediately.

The “Three-Day Rule”

Next time your child “needs” a new toy, try the Three-Day Rule.

•The Game: Acknowledge the “Want” and write it down on a piece of paper. Tell them: “If you still ‘need’ this in three days, we will look at your ‘Save’ jar and see if we can make a plan to earn it.”

•The Result: Most of the time, the “need” vanishes within 24 hours. This teaches them that feelings of “wanting” are often temporary.

Connecting to the Fairy Tales

In Dreams Can Come True, Gail learns that her big dreams require focus. If she spends all her resources on small “wants” today, she won’t have enough for her “Big Dream” tomorrow. By teaching your child this balance, you are giving them the tools for a successful and purposeful life.

Want to start the conversation at home? Explore our award-winning children’s books on Amazon and discover stories that make these big lessons easy to understand.

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Financial Literacy Activities for Primary School Classrooms (KS1 & KS2)

April 2nd, 2026 Posted in financial education in schools, financial literacy, financial literacy resources
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In the modern primary classroom, we are often tasked with preparing children for a world that is increasingly digital and financially complex. While the National Curriculum includes elements of money in Mathematics, the “human” side of finance—values, habits, and enterprise—is often left to PSHE (Personal, Social, Health and Economic) education.

At The Financial Fairy Tales, we believe that making learning about money “serious fun” is the key to long-term engagement. Here are three classroom-ready activities designed for Key Stage 1 and Key Stage 2 to bring financial literacy to life.

Financial Literacy Activities for Primary School Classrooms (KS1 & KS2)

1. The “Needs vs. Wants” Sorting Hat (KS1)

This is a foundational concept that helps younger children distinguish between essential items and “nice-to-haves.”

  • The Activity: Provide the class with a basket of items (or images) like bread, a toy car, a winter coat, a video game, and water. Ask them to sort these into two “hoops” labelled Needs and Wants.
  • The Lesson: This sparks a discussion about priority and choice. It aligns perfectly with the themes in Dreams Can Come True, where characters must choose how to use their resources wisely.

2. The “Classroom Café” Enterprise (KS2)

For older students, understanding how money is earned through value creation is a powerful lesson in entrepreneurship.

  • The Activity: Divide the class into small groups to “run” a pretend café. They must decide on a menu, set prices (considering the “cost” of ingredients), and create a simple marketing poster.
  • The Lesson: This introduces profit, loss, and marketing. It mirrors the lessons in The Magic Magpie, encouraging children to see themselves as creators and problem-solvers.

3. The “Savings Storyboard” (KS1 & KS2)

Visualising a goal is the first step toward achieving it.

  • The Activity: Ask students to draw a “Big Dream” they have (e.g., a trip, a new hobby, or a gift for someone else). Then, have them draw a 3-step storyboard showing how they would save their “gold coins” to reach that dream.
  • The Lesson: This teaches patience and planning. It’s a core theme of The Last Gold Coin and helps children connect their daily choices to their future happiness.

Bringing the Magic to Your School

These financial literacy activities are just the beginning. The Financial Fairy Tales series has been enjoyed in schools worldwide, helping educators deliver impactful lessons that stick.

Looking for more structured resources?

The Financial fairy Tales Activity Book
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Life Skills To Teach Kids About Money Management

December 16th, 2024 Posted in financial literacy for kids, kids and money
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When you think about it, teaching kids about money is really one of the best investments of your time you can make – it’s something that’s going to help them hugely in the future, and ideally they won’t make any (or at least not many) financial mistakes as a result. Yes, they might not be all that interested at first, but if you can show them how important it all is and how to do it so they feel good about the process, they’ll become a lot better at handling money in the future, and that’s what counts. With that in mind, keep reading to learn about which life skills can help teach kids about money management – they’ll thank you for it later.

Life Skills To Teach Kids About Money Management - saving money in a jar

Photo by cottonbro studio:

Saving Money 

One of the first lessons to teach kids about money management is how important it is to save money – it’s tempting for them to spend it as soon as they get it, and why not? They’re kids, after all; getting money is fun and they don’t have any bills to pay. But one day they will, so the earlier they can learn about saving, the better because there’s less chance of them getting into massive debt when they’re older. 

Start by giving your kids a piggy bank or, if they’re a bit older, opening up a savings account for them. Then, encourage them to save a portion of their pocket money or money they get for their birthdays or Christmas and so on, so they can buy something they really want – it might be a new game, a bike, or something else they desperately want to have. Once they see the money starting to accumulate, they’ll feel good, and when they buy whatever it is they wanted, they’ll feel even better. 

Smart Shopping 

You’ve probably already noticed that kids are natural impulse buyers – they have money and want to buy something right away, almost without thinking about what it is or whether it’s worth the money. As an adult who also needs to buy things, you can teach them about smart shopping so that even if they do still want to spend, they can do it the right way and ideally get something worthwhile that’s going to last. 

A good example is if you want to buy a car. Show the kids the choices and explain the pros and cons of the cars you’re interested in, let them know your budget, show them how to compare models so they can see that the Quartermaster is a great choice, and then wait before buying – that’s going to show them that it’s best to step back even when you’re sure about what you want, just to be on the safe side.

Needs Vs Wants 

Something else that’s important for kids to learn is the difference between needs and wants – if they know that, it’s going to make decisions a lot easier, they’ll be able to budget better, and they’ll be able to prioritise their spending, all of which is vital for good money management. 

So when they’re making decisions about what to spend their money on, talk about whether something’s really necessary or whether it’s just something they’d like – and make sure they know they can still have fun and buy cool stuff, as long as they prioritise their needs first. 

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