For instance, buying a new smartphone because it looks stylish is a want, while  buying food is a need.

How to Understand :  

Wants are extra things that make life nicer but are not essential for living.

Importance :

Understanding wants helps you budget better by knowing what you need versus what  you want.

It helps control overspending, so you don’t spend too much on non-essential items.

Recognizing wants supports your long-term financial goals, allowing you to save for  important things.

It encourages you to make mindful purchasing decisions, thinking carefully about what  you really need.