# Needs vs Wants

*Everyday Money — Finicade finance glossary*

Needs keep your life running (rent, groceries, getting to work); wants make it nicer (streaming, eating out, the newer phone). The skill is telling them apart before money gets tight — plenty of spending dresses up as a need when it's really a want in disguise.

**Related terms:** [Expenses](https://finicade.com/glossary/expenses), [Budget](https://finicade.com/glossary/budget), [The 50/30/20 Rule](https://finicade.com/glossary/50-30-20)

**Taught in:** Money Basics — Where Does Your Money Go?

Source: https://finicade.com/glossary/needs-vs-wants