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Lectur13-page10 - I have a 5 year old son at the time of this writing From his perspective he has needed everything when visiting WalMart or the

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10 Necessities Versus Wants At some price, the distinction between necessities and wants becomes clear. How much are you willing to pay for Clean Air? Quality Medical Care? A College Education? Personal Safety? How “clean” is the air now? What will it cost to have cleaner air? How good is medical care now? What will it cost to have better medical care? I think you are getting the idea. And I think that at some defined cost for each of these items, some of us may prefer something else. What if it was going to cost each of you an additional $1,000 per year to have cleaner air to breath, how many of you would choose cleaner air? We all WANT these things, but at some cost we will clearly differentiate between a true NEED and a want. We all NEED a lot of things when someone else is footing the bill. When we have to bear the brunt of the cost for things, it is amazing how needs change.
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Unformatted text preview: I have a 5 year old son at the time of this writing. From his perspective, he has needed everything when visiting WalMart or the grocery store. We are trying to teach him about prices and money at this time. It has been amazing how his perspective and attitude has changed when confronted with a budget constraint and given the responsibility to allocate his own monetary resources across his many “needs.” He does not “need” as much stuff when he is spending his own money. Now, we are not ready to turn him lose on the world of high finance yet; but it is amazing to me how even a five year old reacts to their wants when faced with bearing the cost of those wants. I have learned that I get out of WalMart and the grocery store with more money in my back pocket if I give the young man a dollar and let him allocate the funds himself....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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