What Counts as a Need vs. a Want – and Why It Matters Now

Strategies for building a budget where wants and needs can co-exist

Do one thing: If you haven’t tried living within a budget in a while, or ever, take the plunge. You can search online to determine which budgeting plan (or app) may work best for you. 

Budgeting = More Control Over Spending 

If you want to learn smarter strategies for making your hard-earned money work harder for you, it may be time to revisit the basics of budgeting. (And if the B word makes you nervous, don’t stop reading just yet!) Learning to live within a budget – or a spending plan –  can be a solid step to a better financial life.   

Why Budgeting Matters

Research suggests that people who maintain a budget (or use budgeting tools) report having higher financial confidence and lower stress compared with those who don’t live by a budget. Why? It’s likely because what gets measured gets managed. 

Budgeting and Financial Comfort

A May 2025 study of more than 2,000 U.S. adults by PYMNTS found that among those who couldn’t make their earnings stretch until the next direct deposit, more than 50% who began using budgeting tools reported feeling more financially comfortable.

Building Your Personal Budget

And while it may seem simple on paper, one of the most challenging pieces of creating a budget you can live with long term can often be separating essential expenses – often called needs – from what would be considered lifestyle upgrades or wants.

• Real-Life Example. For example, you may think you “need” to eat out four days a week, but you could probably get by on eating at home or packing a lunch and limiting restaurant or takeout food purchases to once a week or so. (And your wallet would surely thank you.) 

Breaking Down the Difference Between Needs and Wants

To help unpack the differences between needs and wants, several financial experts weighed in. 

Lucas Wennersten, CFP and founder of 49th Parallel Wealth Management, says he grew up with a father who used the wants vs. needs strategy to manage his finances for much of his adult life.

Benefit of Frugality and Savings

“His frugal lifestyle and savings habits paid off for him,” Wennersten says. “He and my stepmother were never really high earners, but they saved and invested and focused on needs vs. wants, especially in low-income years. My dad was so frugal that all of his friends called him “Coupon Bob.” He would never eat anywhere he didn’t have a coupon for.”

What Are Needs?

Our most basic needs are things that you must have to live, including:

• Food
• Water
• Housing (rent or mortgage) 
• Transportation (to work and school)
• Clothing

Our needs may also be things that you don’t necessarily need right now, Wennersten says, but are likely to cost you significantly more if you put them off, such as:

• Regular medical and dental check-ups
• Routine vehicle maintenance
• Termite and other pest control treatments for homeowners
• Protections such as health and life insurance

“Some items can be needed and wanted at the same time,” he says. “We need food, but we don’t need to eat out at nice restaurants or have snacks and desserts. We need clothes to wear, but we don’t necessarily need custom suits and expensive jewelry.”

What Are Wants?

When it comes to household budgeting, wants are everything else in our lives (that cost money) that don’t fall into the needs category. Think concert tickets, vacations, streaming services, the latest smartphone when you already have a working device, etc. 

Can You Have Both?

Yes. The key to covering your needs and still making room for some non-essential wants that make life worth living is to create a budget that allows for more of both.

• Be Intentional. “It’s not about cutting everything, but being intentional about what gives you joy,” says Alvin Carlos, CFA, CFP, a financial planner and managing partner at District Capital Management in Washington, DC. “One strategy that really works is setting up a ‘guilt-free’ spending number each month for your wants.”

 How to Budget for What You Need And Want

A basic household budget should include all of the needs mentioned previously, plus a category for savings. If you can cover all of those things with your monthly income and still have money left over, this is where you have wiggle room to budget for wants.

• Wiggle Room for Wants. “Let’s say you give yourself $300 a month,” says Carlos. “You can spend that however you want: a nice dinner out, a concert ticket, a new pair of shoes, whatever feels worth it that month. The key is that once that $300 is gone, it’s gone. You don’t feel bad about spending it, but you also don’t swipe past your limit just because it’s on a card.”  
• Freedom and Boundaries. This approach can give people freedom and boundaries at the same time. “You’re still enjoying life,” Carlos explains, “but within limits that protect your bigger goals: saving for travel, retirement, or paying down debt.”

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Upcoming Board Elections

In accordance with NCUA Federal Credit Union Bylaws, nominations for the election of the Board of Directors are now open. There are four vacancies extending for a three-year term for the Board of Directors in 2026. The Nominating Committee presents the following candidates, who have agreed to accept the office if elected.

John Masengarb

John Masengarb received his undergraduate degree from Augustana College with a major in accounting. He began his federal government career in April 1964 at the Rock Island Arsenal. During his 33-year career he held positions as an accountant, program analyst, logistics management specialist, and inventory management specialist. Because of John’s efforts in the government and private sectors, he was inducted into the Ammunition and Army Ordinance Halls of Fame. John has been a member of R.I.A.FCU for over 50 years. He began volunteering as a member of the Business Development, Marketing, and Membership Committee nine years ago. John has previously served as Supervisory Committee Chairman and Chairman of the Board of Directors.  Currently, he serves as the Treasurer of the Board.

Arun Pillutla

Arun Pillutla served R.I.A. as a board member for 20+ years in different roles including as a member of the Supervisory Committee, Chair of Funds Management Committee, and Treasurer. He is currently the Vice Chairman of the Board of Directors. He has been a member of R.I.A. FCU since 1999. As a volunteer, Arun’s interest and passion is in strengthening the credit union to better serve the credit union members. Arun is Emeritus Professor of Management at St. Ambrose University and currently on the faculty at Central Washington University. He received his Ph.D. in Business Administration from Washington State University. Arun’s professional experience includes undergraduate and graduate level university teaching, corporate work at multinationals, and scholarly research published in top academic journals. Arun was awarded the prestigious Fulbright award, Best Paper award for his research, and invited to be a Keynote speaker for academic and credit union conferences.

Chuck Roberson

Chuck Roberson brings extensive experience in public administration and social work, with a strong commitment to improving community outcomes and breaking cycles of dysfunction and poverty. He holds an MSW in Individual/Family Practice, a Ph.D. in Public Policy Analysis and Administration, and an MBA, applying a diverse skill set and postmodernist approach to problem-solving through leadership roles in organizational development, program analysis, and human development, including contributions to the U.S. Army’s worldwide material maintenance and automated financial management systems. A licensed therapist and adjunct instructor, Chuck has volunteered extensively in family therapy, homelessness, and institutional development. He currently serves as Associate Director on the Board of Directors for R.I.A. Federal Credit Union, a position he has held since 2025. Alongside his board service, including the Rock Island County Nursing Home Board, and his work in civic education and community development, he advocates for efficient, equitable systems that strengthen the community.

Members interested in being nominated for a Board seat, in addition to incumbents, must submit biographical information and a petition signed by at least 20 members to the Board Secretary, R.I.A. FCU, P.O. Box 4750, Rock Island, IL 61204. Nominations close January 31, 2026. No nominations will be accepted from the floor at the Annual Meeting on April 10, 2026. If the number of nominees exceeds those submitted by the nominating committee, the election will be conducted by ballot.

Board nominees must be willing to commit volunteer time each month. Directors and committee members serve without compensation and are responsible for setting policy, representing the credit union, ensuring proper oversight of records, studying assigned topics, serving on committees, and completing required training to effectively fulfill their duties.

Annual Meeting

R.I.A. Federal Credit Union’s 90th Annual Meeting will be held Friday, April 10^th at our Utica Ridge branch location- 4343 Utica Ridge Rd, Bettendorf, IA 52722. The business meeting will convene at 6:00 p.m. with food to follow. Members and guests must make reservations and pay $5.00 each in advance for the meeting. Tickets must be presented to participate and dine. Tickets are non-refundable and may be purchased at any of our locations. Members who mail in this form with payment will receive their tickets in the mail.

Community Involvement

Children’s Miracle Network Golf Outing

Following this year’s annual Credit Unions for Kids Golf Outing benefiting the Children’s Miracle Network, we travelled to Iowa City with participating credit unions to deliver the proceeds earned. A tour of the hospital showed us exactly how our funds are being allocated and brought an even deeper appreciation for the hard work their organization puts in every day.

HAVLife Golf Outing

At this year’s HAVLife Golf Outing, we supported as the premier sponsor. A group of R.I.A. employees volunteered their time to make the event run smoothly. The organization raises funds to prevent lost potential in our local youth. As always, we love having an active role in the operation of this outing.

Festival of Trees & Tree Lightings

Getting into the holiday spirit, R.I.A. proudly sponsored this year’s Festival of Trees parade, where we carried the iconic Rudolph balloon, complete with custom-designed sweaters for our staff to wear as we marched! Our R.I. Arsenal location also participated in the Arsenal Tree Lighting, hosting a fun craft activity for kids. Meanwhile, our Wisconsin team was busy spreading cheer at their Tree Lighting ceremony on Fort McCoy, with some of our Quad Cities crew even making the trip to join in the festivities.

Toys for Tots

With the support of our generous communities, we proudly collected toys for this year’s Toys for Tots fundraiser. We are deeply grateful for the kindness and generosity shown and are honored to give back to those in need this holiday season.

Halloween Season

As usual, we attended many Halloween events throughout our communities. We passed out candy to kids at Boo on the Rock at the Arsenal, Fort McCoy MWR Trunk or Treat, Milan Chamber, Wilton Trunk or Treat, and Sexton Ford Trunk or Treat. Our mortgage team attended the Mel Foster Pumpkin Day and RE/MAX Trunk or Treat.

Mr. Thanksgiving Dinner

This year, the R.I.A. team went above and beyond in supporting the planning and preparation of the Mr. Thanksgiving Dinner. From dedicating their time to making financial contributions, we had the privilege of partnering with amazing organizations and individuals to help ensure that this year’s event was a tremendous success.

Gildas Club

This year, we partnered with Gilda’s Club at their Davenport location to host a Chemo Care Packaging event, where we packed 500 care bags filled with essential items supplied by our credit union. These bags will be distributed across both of Gilda’s Club locations to provide vital support to those affected by cancer.

Need $$ For College?

Apply for A Scholarship Today

 If you thought R.I.A. Federal Credit Union could only help you pursue a college education by offering student loans, think again! R.I.A. FCU will be awarding five $1,000 scholarships for the upcoming school year.

These scholarships will be awarded to students who demonstrate academic excellence, exhibit outstanding contributions to their school and community, and are current credit union members. Current high school seniors and students continuing their higher education are eligible to apply. 

Applications may be found online and must be post marked no later than March 31st, 2026.

Tax Season Notice

Tax season is in full swing! Make sure to double-check your routing number, account number and account type when filing to ensure your refund processes correctly. R.I.A. FCU’s routing number is 271188337. Please check your statement for your full account number. It will be longer than your 6-digit member number – do not use your member number. Only checking/share draft and savings/regular share accounts should be used for tax return direct deposits.

Special Closings

Martin Luther King Jr. Day
Monday, January 19
Washington’s Birthday
Monday, February 16

Remember, you can still access your credit union account on holidays and after hours with your R.I.A. FCU ATM/Debit Card, Mobile Banking, DANA or Internet Account Access. Sign up today!

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