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Understanding wants and needs matters to a business because you can help your customers by steering them towards buying the things they need vs. the things they want.

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People satisfy their wants and needs by limiting buying the things they want so they can afford to buy the things they need.

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Understanding the difference between needs and wants will help us make wiser decisions when spending money. Instead of wasting money on things we want, we should focus on investing in the things we need in life in order to survive.