Year 10 Economics

The only thing I remember from my four week taster of Yr 10 economics twenty–six years ago was the difference between ‘needs’ and ‘wants’. It seemed such an easy concept to a 14 yr old – little did I realise then that it would be one of the hardest lessons in life to master. Looking at our monthly financial analysis for November there are still ‘wants’ that could be removed from our spending list even though again this month we have reached our goal of spending less than we earn. One of my reductions that I’ve decided on for December onwards is no magazine purchases. There is very little in magazines that can’t be found some other way for free. My local library is bursting with books and magazines and a visit for half an hour is now part of our weekend activities. It won’t save a huge amount – about $144 a year but every bit adds up in the long run. Hubby on the other hand has a list of ‘wants’ that are presently non-negotiable in terms of removing them from our spending list – amongst them is buying his lunch and smoking. There are times it can drive me crazy thinking how much money is wasted on these things (not to mention the health implications) but I know there is no point letting these feelings get in the way of ruining our financial goal. When it comes to money we all have different value systems and allowing room in the budget for the other person’s ‘needs’, even when you don’t really understand their needs, is an important part of creating a budget that will actually work. I don’t think they teach you that part in Year 10 economics!