A need is necessary for survival. According to Maslow’s Hierarchy of needs, there are three basic needs – food, clothing, and shelter.

A want is desired, but not necessary.

For example, a car would be a need if it is good, reliable transportation. A car with added costs due to all the extras would be a want. Where there is a limited amount of money, we have to make choices. Our wants can be eliminated or delayed until there is more money.