Why do people find it difficult to distinguish between financial wants and financial needs?

[Fidelia]

Financial wants are supposed to be quite different from financial needs. A person is supposed to prioritize financial needs over financial wants. But many people can't even differentiate the two. What makes it difficult for people to differentiate financial wants and financial needs?

 

[eLdavis]

I think in some cases, it's not that they can't see the difference, but it is simply because they can't control themselves to go for what they need.

 

[Suba]

Unsurprisingly, both are very similar, so many people have difficulty distinguishing financial wants and financial needs and both are often influenced by several factors such as emotions, trends, satisfaction, the influence of advertising and social media, fomo etc.

 

[Kross]

Unsurprisingly, both are very similar, so many people have difficulty distinguishing financial wants and financial needs and both are often influenced by several factors such as emotions, trends, satisfaction, the influence of advertising and social media, fomo etc.

I think this is a more valid reason. Some people just think everything they desire is worth committing financial resources on.

 

[Nomad]

The only plausible reason that I can see it people lack financial knowledge and do not have financial discipline.

 

[Springtime]

To me, needs for basic daily necessities. For wants, you have no problem even if you do not have it. People just lack self-discipline if they cannot distinguish between needs and wants.

 

[King Belieal]

It is the lack of financial education that has made people not to understand that not every craving is a need.

 

[Stardom22]

Actually the two principles are very contradicting. However one should really prioritise on the financial needs to financial wants for the truth of the matter .