New phone or summer trip?

A new phone costs €900. A summer trip costs €600. You can afford one of them. Not both.

✍🏻 Write in the chat: 📱 or ✈️ — and one reason why.

🤔 Whatever you chose — what happened to the other one?

Show answer

You gave it up. Not because it was bad — because your money could only go to one of them.

Every choice with limited money takes something away. And that thing has a name.

NEW WORD opportunity cost what you give up when you choose one thing over another 🗣️ Say it: op-por-TU-ni-ty cost · ✍🏻 Use it: "My opportunity cost is …"

You just used the idea before you knew the word. That happens a lot with money.

Shoes: must you, or want you?

Look at these six things. Which ones could you live without for a year?

🤔 You just split them into two groups. What is the difference between the groups?

Show answer

One group keeps you alive and healthy. The other group makes life nicer.

The first group are needs — things you must have to live. The second group are wants — nice to have, but not necessary.

🤔 Now the tricky one: are shoes a need or a want?

Show answer

Both — it depends. Shoes are a need. Brand sneakers for €180 are a want. The same thing can be a need or a want — that is why we always ask why.

Three boxes, twelve things

Move every item into one of the three boxes. Tap an item, then tap a box — or drag it with your finger or mouse.

💧 water 🚌 bus ticket 👟 new sneakers 📚 school books 🍬 sweets 🎮 phone game 🧥 warm jacket 🎫 concert ticket 📱 phone 🎵 streaming 🥪 lunch 🎧 headphones

MUST HAVE I can't live without it

IT DEPENDS sometimes yes, sometimes no

WANT nice, but not necessary

✍🏻 Write in the chat: which item was the hardest to place — and why?

🤔 Compare with the others: did everybody fill the boxes the same way?

Show answer

Almost never. Water and lunch land in the same box for everyone. Most other things move — a bus ticket is a must if there is no other way to school, and a want if you can walk.

That is why the middle box exists. The situation decides, not the thing.

The €1,100 question

You are 17. You earn €350 a month from a weekend job. The phone costs €900, the trip €600. You have €1,100 saved.

✍🏻 Write your decision in the chat. There is no right answer — but name your opportunity cost: "I would choose … The opportunity cost is …"

Whatever you choose, you give something up. That is a trade-off — and it is the normal state of every budget.

Four words you now own

You met all of them in a real situation. Now say them out loud and use one in your own sentence.

needmustsomething you must have to live
wantmustsomething nice to have, but not necessary
opportunity costmustwhat you give up when you choose one thing over another
trade-offnicegiving up one thing to get another
Open the Money Words library →

One sentence to keep

💡 With limited money: needs first, then wants — and every choice has an opportunity cost.
✍🏻 "One thing I will think about before my next purchase is …"