A need can be defined as something without which one cannot survive or carry on for long time, one example of it is water. If one does not drink water one won’t survive for long. Hence anything which is necessary for living can be defined as need. Hence it also includes food, clothing, education etc…., While want can be defined as something which you have liked to have though it is not necessary and wants can be unlimited. So for example buying a luxurious car or buying a latest mobile is an example of want.
However within these broad classifications there can differences like though food is a need but eating ice-cream can be a want, in the same way though liquids like water is a need but drinking cold drinks can be want because they taste good.
Above distinction between need and want is important because people tend to go behind want and they end up not having enough money for their needs. Many people spend huge amount for satisfying their wants by taking huge debts and then end up in financial crisis. Hence from the above one can see that wants are important for people because they keep them motivated for doing more work and earn money so as to satisfy their wants but one should have a limit on his or her wants because they can be unlimited and no one this world can satisfy the wants completely.