Financial goal setting means to save for what you really need as well as what you want.
A need is something you cannot live without, something you must have. A want is something you would really like to have but can live without. Wants are things that make people happy or may make life seem a little easier or a little more special.
- We need clothes to keep us warm, but is an expensive, fashionable T-shirt a need or a want? (Want)
- Is a pair of school shoes a need or want? (Need)
Distinguishing between your needs and wants helps you to decide where best to spend your money, so that you will have enough to save too.