The primary difference between needs and wants is that needs are basic necessities required for survival, whereas wants are desires that provide comfort and satisfaction. For example, food is a need because we must eat to live, but chocolate is a want because it is enjoyed for taste and pleasure.
| Basis of Difference | Needs | Wants |
|---|---|---|
| Primary Difference | Needs are basic necessities required for survival. | Wants are desires that provide comfort and satisfaction. |
| Nature | Essential and compulsory for daily living. | Non-essential and optional based on preference. |
| Priority | Highest priority in budgeting and decision-making. | Lower priority and considered after needs. |
| Impact on Living | Directly affects health, survival, and well-being. | Affects comfort, pleasure, and lifestyle. |
| Frequency | Regular and ongoing in daily life. | Occasional and based on desire or trend. |
| Budget Share | Takes a major share of income. | Depends on extra income after meeting needs. |
| Flexibility | Cannot be reduced below a minimum level. | Highly flexible and can be postponed. |
| Examples | Food, water, shelter, basic clothing, medicines. | Chocolate, branded clothes, smartphone upgrades, luxury travel. |