Needs and Wants (Junior Cert Business Studies): Revision Notes
Needs and Wants
Understanding needs and wants
The money we earn gives us the power to purchase different items. However, not everything we might want to buy is equally important for our wellbeing and survival.
A need is something essential for survival and basic wellbeing. Examples include food, water, shelter, and clothing.
A want is something we would like to have but can manage without. Examples include smartphones, video games, designer clothes, or holidays.
Understanding this difference is crucial for making smart financial decisions. When we have limited money, we should prioritise our needs before spending on wants.
Personal resources to meet our needs and wants
To obtain the things we need and want, we must use the various personal resources available to us. These resources come in several different forms.
Material resources
Material resources include both our income and the possessions we already own. This covers:
- Regular income such as wages, allowances, or benefits
- Irregular income like birthday money, bonuses, or cash gifts
- Existing possessions such as cars, phones, or other valuable items we can use or sell
Example: Using Material Resources
If Ivan wants a new phone, he might use birthday money he received to purchase it. His birthday money is a material resource he can draw upon.
Personal qualities
These are the skills, talents, and character traits that each person possesses. Personal qualities can help us achieve our goals without spending money, or they can help us earn money to buy what we need and want.
Examples of personal qualities include:
- Academic skills like numeracy or literacy
- Creative abilities such as musical talent or artistic skills
- Physical abilities like sporting prowess
- Character traits such as determination or leadership
Example: Leveraging Personal Qualities
If Heather dreams of becoming a musician, she can use her musical skills and creativity to work towards this goal, potentially earning income from performances or lessons.
Time
Time is a precious and limited resource that must be managed carefully. We all have the same 24 hours each day, but how we choose to use this time can significantly impact our ability to meet our needs and wants.
Example: Time as a Resource
Consider Matthew, who wants to learn how to code. He must dedicate time after school and at the weekends to practise. Without investing this time, he cannot achieve his goal.
Family, friends and community
Our social networks provide valuable support that can help us make the most of our other personal resources. This support can take many forms:
- Financial assistance such as parents paying for lessons or activities
- Transportation like getting lifts to events or classes
- Emotional encouragement and motivation to pursue our goals
- Sharing knowledge and skills through teaching or mentoring
Example: Community Support
Sam's mother not only pays for her singing classes but also drives her there each week. This family support helps Sam develop her musical talent by providing both financial resources and time.
The impact of meeting needs and wants
Our decisions about how to meet our needs and wants don't just affect us personally. In today's world, we're constantly surrounded by advertisements trying to convince us to buy products we may not actually need. As consumers, it's important to understand that our choices have wider consequences.
Impact categories
The impact of meeting our needs and wants affects three key areas:
- Ourselves (individuals)
- Other people (society)
- The planet (environment)
As responsible consumers, we should consider how our purchasing decisions affect not just our own wellbeing, but also the broader community and environment around us.
Examples of impacts
Example 1: Food Choices and Health
Neil requires food for survival, making it a genuine need. However, if he consistently chooses fast food to satisfy his hunger, this could damage his health over time. Additionally, fast-food packaging creates environmental waste that takes centuries to decompose, harming the planet.
Example 2: Fashion and Workers' Rights
Louis wants a new outfit for the weekend, which is a want rather than a need. If he purchases from a shop that pays workers very low wages and provides poor working conditions, he's inadvertently supporting these unfair practises. Her consumer choice has social consequences for other people.
Example 3: Transport and Environmental Impact
Jane desires a large car with a powerful three-litre engine. While the car looks impressive, it consumes significant amounts of fuel and produces high levels of carbon dioxide and other harmful emissions. This contributes to air pollution and climate change, negatively affecting the environment.
Key Points to Remember:
- Needs are essential for survival (food, water, shelter), while wants are desirable but not necessary (entertainment, luxury items)
- Personal resources include material resources (money and possessions), personal qualities (skills and talents), time, and support from family, friends, and community
- Smart consumers consider the impact of their purchasing decisions on themselves, other people, and the environment
- Prioritising needs over wants helps ensure better financial wellbeing and more responsible consumption
- Using personal resources wisely can help us achieve our goals while minimising negative impacts on others and the planet