Limited resources force every individual to make choices in meeting their needs and wants. The ability to distinguish between needs and wants is an important part of economic and financial literacy that should be introduced from an early age. This Community Service (PkM) activity aims to improve the understanding and ability of children at the CIJ Waibalun Dormitory to differentiate between needs and wants and to set priorities in spending their pocket money. The activity was carried out using a participatory, contextual, and educational approach through delivering materials, discussions, educational games, simulations, case studies, decision-making exercises, pre-tests, post-tests, and reflections. There were 20 female participants in age groups of 15, 17, and 20 years. Based on simulation data, the average participant score increased from 54.2 on the pre-test to 83.8 on the post-test, an increase of 29.6 points or 54.6% compared to the average score. At the beginning, 80% of participants were in the very good category and 20% in the good category. These results show that learning that connects economic concepts with real-life experiences can help participants understand scarcity, choices, needs and wants, setting priorities, and managing pocket money. The activities were also aimed at developing frugal, disciplined, and responsible behavior in using resources. The sustainability of the program requires regular habits like tracking expenses, setting priorities, and saving
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