This is a sizable amount of money for many families. Many teens earn their money through employment while others rely on their parents to provide the spending money.
Needs are basic for survival while wants are desirable to make life more comfortable.
Teens often think that they need the latest CD or that they need a new outfit for the upcoming dance. In reality, it is usually that they WANT these items, not that they NEED these items for survival. Deciding what is a want and what is a need can be hard and frustrating. Saving towards a goal is an important life skill and should be treated as an expense when setting a budget. Learning to manage money is a life skill.