Which of the following would be considered a "need" rather than a "want"?

Study for the FDIC AIDT Ready-To-Work (RTW) Money Smart Exam. Practice with multiple-choice questions, each with hints and explanations. Prepare for your assessment!

Paying rent or mortgage is classified as a "need" because it is essential for maintaining stable housing. Without paying rent or mortgage, an individual risks losing their home, which directly impacts their security, safety, and overall well-being. This obligation is typically non-negotiable and is a priority for financial stability and survival.

In contrast, purchasing a new smartphone, funding a vacation, or dining out at restaurants are generally considered "wants." These expenses do provide enjoyment or convenience, but they are not critical for the basic necessities of life. A person can often function without these items or experiences, especially when budgeting for essential expenses. Therefore, the distinction lies in the critical nature of housing payments versus discretionary spending.

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