Understanding the difference between needs and wants is crucial for practicing financial literacy, as most decisions involve choosing between them. Opportunity cost, the cost of missing out on the option not chosen, plays a significant role in decision-making.

Learn the distinction between needs and wants in financial literacy for children. Needs are essential for survival like food and shelter, while wants are non-essential items like toys or expensive sneakers.

When faced with the choice between buying rollerblades on sale or going to the movies with friends, Frankie must consider her opportunity cost. This chapter explores the concept of opportunity cost through Frankie's dilemma and encourages readers to make financially responsible decisions.