A need is a psychological feature that motivates people toward a goal, providing purpose and direction for behavior. Needs are a fundamental feature that humans require to survive. These include food, water and shelter. They also include emotional and psychological requirements such as feeling loved, connected and admired. The best known academic model of human needs is the hierarchy of needs, developed by psychologist Abraham Maslow in 1943. The idea is that people need to meet basic physiological and safety needs before they can move onto more complex psychological or emotional needs like love, belonging and self-actualization.
In general, the distinction between a need and a want is that a need has the potential to result in harm if not fulfilled. If someone is hungry, for example, if they do not receive food to eat, they will experience the negative outcome of hunger and possibly even starvation. A want is something a person wishes to have that is not necessary for survival. Examples of wants include a cheese burst pizza, a night in a luxury hotel or the latest electronic gadget.
The logical distinction between needs and wants is important to consider when planning a budget or prioritizing tasks. It is essential to understand that needs should be taken care of first before people start spending money on wants. For example, a person will always need to drink water but the type of drink a person will want can vary daily or hourly.
Some experts believe that the term “need” is often misused and that the underlying concept is more akin to a desire or aspiration. Some of these concepts are referred to as ‘needs’ by some and ‘demands’ by others. The difference between needs and desires is subtle but significant.
Identifying personal needs is an exercise in which people explore their experiences and try to discover what is important to them. One way to do this is through a Needs Assessment. This process involves writing down all the things a person might feel they need, then filtering this list to find the actual needs. Having a list of actual needs helps a person plan for the future and identify potential obstacles.
Having a clear definition of the difference between needs and wants makes it easier to determine when and how to spend money. Ideally, needs should be met before wants are purchased. This can help people avoid overspending and prevent debt. It can also make it easier for people to recognize when their needs are not being met and take steps to ensure that they are.