For example, purchasing a new smartphone because it looks stylish is a want, whereas buying food is a need.

How to Understand :  

Wants are optional expenses that enhance your comfort or lifestyle but are not  necessary for survival.

Importance :

Identifying wants helps improve budgeting by distinguishing between needs and wants.

It aids in controlling overspending, ensuring you don’t spend too much on things that  aren’t essential.

Recognizing wants supports your long-term financial goals, allowing you to allocate  funds for important priorities.  4.It encourages mindful purchasing decisions, prompting you to think about whether you

truly need the item.