A "need" is something you cannot live without. A "want" is something that would be nice to have but isn't necessary.

"A need may be a pair of sneakers, but a want is the $125 pair advertised by your favorite athlete," explained Paul Horwitz of the FDIC.

When you can control your spending on life's wants, you'll have more money available to save for what you need in the future.

Janet Kincaid of the FDIC offered this tip: "Take a day or two to think about any purchase that will cost a significant portion of your savings," she said. "If you really need to buy the item, it will probably still be there for you. If you don't need it but you still want it, perhaps you can buy something similar that's a lot less expensive and save the remaining money for other things."