Ever checked your bank account and thought, “Where did all my money go?” You’re not alone. A few snacks here, a new shirt there, and suddenly your cash disappears. The secret to fixing it? Learning to separate essential spending from the extra stuff. It’s not about cutting out fun, it’s about making your money work smarter, not harder.
Essential vs. Non-Essential Purchases from the Money Matters blog series. If you’re just getting started with Financial Literacy, this lesson will help you build the money habits that lead to long-term financial freedom. With just a few simple changes, you’ll go from confused spender to confident saver.
Why Knowing the Difference Matters
Every purchase is a choice. Essentials keep you going. Non-essentials are nice—but they can wait. When you learn to prioritize, you gain control and avoid the cycle of overspending and regret.
Real-Life Example:
Trey, 17, realized he was spending over $60 a month on food delivery. Once he started analyzing his expenses using the Think True Cost App, the best money management app he could find, he switched to cooking meals at home. The result? More savings, more confidence, and better health.
What Counts as an Essential Purchase?
Essentials are the basics—the things that keep you healthy, secure, and focused on your goals.
- Housing (rent, dorm fees, or shared costs)
- Utilities (water, electricity, internet if used for school)
- Groceries and meals (especially home cooked)
- Transportation (bus fare, gas, or Uber to school or work)
- Health care and school expenses (prescriptions, supplies, fees)
Think of these as non-negotiables. They help you survive and succeed.
Non-Essentials: Wants in Disguise
These are purchases that may bring a quick thrill but aren’t necessary:
- Snacks, fast food, and fancy coffee
- New clothes when your current ones are just fine
- Subscriptions you barely use
- Impulse buys from online shopping or scrolling TikTok
- Upgrading things, you already have (like another pair of sneakers)
These items aren’t “bad”—but they’re optional. Saving money starts with learning to pause before hitting “Buy Now.”
Mini Tool – Expense Filter Exercise
Take your last 5 purchases and ask:
- Did I plan for this?
- Is it essential for my daily life or goals?
- Can I live without it this week?
Smart Habits to Spend Wisely
1. Review Subscriptions
Cancel the ones you haven’t used in the past month. That’s easy money saved.
2. Meal Prep Over Takeout
Planning your meals saves you $30–$100 a month—and teaches you responsibility.
3. Make a List and Stick to It
When shopping, whether online or in-store, use a list. If it’s not on the list, skip it.
Testimonial:
“I used to buy random things online whenever I was bored,” says Leila, 18. “Now I use the Think True Cost App to check my essentials first. I still treat myself, but only after I’ve taken care of what I really need.”
Essentials First = More Peace, Less Stress
Spending is part of life, but spending without a plan leads to unnecessary pressure. When you focus on essentials, your money stretches further—and every dollar starts working for you, not against you.
Ready to Take Control of Your Spending?
✅ Visit www.thinktruecost.com to explore smart spending tools and tips
✅ Download the book Money Matters on Amazon to improve your financial education
✅ Install the Think True Cost App from the Apple or Google App Store—the best money management app for staying on top of what matters most
Your money can take you far—when you give it direction. Start making smart spending choices today.
