Insulating a basement

I live in the St Louis area and I\'m remodeling my basement. I\'m framing with 2x4s and 3 walls are outside poured concrete (the 4th internal). The basement is totally underground with no leaks or moisture problems. Do I need to insulate the outside walls? I an planning to use paneling on 2 of the walls and wainscoat pine on the 3rd. If not OK if I need to insulate what should I use? Thanks

Yes, you should insulate the newly framed walls that are at the exterior walls.  Use a R-13 batt type with paper facing.  Place the paper side on the warm side of the wall (interior).  The insulation will help keep the basement feeling warm on those cold winter days.