Money is a wonderful invention of man. It is the power that helps people in earning and spending. Its importance can be understood by knowing how it solves the problems of human beings. We should know how to spend money properly and how we can save money for future use. In this essay, we’ll talk about the importance of money.The value of money is based on the following functions:
- Medium of exchange – Money is a medium that facilitates the exchange of goods and services. It can be used to purchase groceries, pay your student fees or even buy concert tickets.
- Store of value – Money allows you to store purchasing power over time so that you can use it later when required. For example, if you earn $400 today but do not need all of this money in one go, you would rather keep it for later use as ordering pizza with friends next weekend or buying tickets for movies.
- Unit of account – Money provides an agreed standard for measuring how much something costs, such as $6 for breakfast sandwich from McDonalds or $800 for a new laptop computer.
When barter system was prevalent, human relations deteriorated to a great extentWhen barter system was prevalent, human relations deteriorated to a great extent. The reason for this is that in a barter system there is no currency or money. Therefore, when a person has a surplus of goods and services he can exchange them with others but if his requirements are more than what he has then he faces a problem.
The existence of money paved way for good and improved living standardThe first currency that was widely used was gold and silver. Gold coins were used as a medium of exchange, while silver coins were used as a store of value. Gold and silver are extremely scarce resources, so they were chosen over other materials because their scarcity made them scarce resources with high value.
The introduction of money has made our lives easier than before. We can now purchase goods and services without having to wait for someone to give us what we need. People can also save up their money for future use when the need arises without having to worry about keeping track of everything they have spent on each item or service rendered to them.
Does money matter in life?In order to understand how money works in our lives today, we must first know what it is and how it functions. Money is any object or record that is generally accepted in payment for goods and services; serves as a medium of exchange, unit of account, or store of value; and is generally accepted as final payment for goods (Federal Reserve Bank). Money can be categorized into three main types: commodity money (gold), representative money (fiat currency), verification system (digital currency).
Some people think that money is a very important thing in their lives because they can use it to buy what they want, but some people think that money isn’t so important. For example, some people have lots of money and they can buy anything they want with their money; however, other people don’t have much money and have no choice but to work hard every day just to earn enough for themselves and their family.
Regardless as to which side you are on, there is no denying that a person’s life experiences are often dependent on their financial situation. Money does not always guarantee happiness or security; however, having enough cash flow certainly makes daily life easier for most individuals.
Why money is important in our life?Money is the medium of exchange. We, humans use money to buy things and services from others. Without it, we cannot live a comfortable life as we need food, clothes and shelter. If you have no money you will be miserable because all these things are very necessary for our survival in this world.
The following points will help you better understand why money is important in our lives:
- Money helps us to buy food and clothes etc., which means without enough amount of money one can’t survive properly;
- Money helps us to buy various services like transportation, medical care etc.;
- Money also helps us build our houses and other buildings such as schools or colleges;
- The power of money
Money has many benefits; it allows us to live comfortably without worrying about where our next meal will come from or how we are going to pay for college tuition fees for our childrens’ education. With more than enough money at hand, life becomes much easier as well as enjoyable because there is nothing stopping us from doing what makes us happy such as travelling abroad or buying new clothes whenever we need them (as opposed to waiting until payday).
Some evils are also associated with moneyMoney can be a source of happiness and joy or it can also be a source of evil. Money is not everything and therefore, we should not put too much emphasis on it. Money has its own merits as well as demerits.
The main merit of having money is that it helps you live a comfortable life by providing you with all the resources necessary for living comfortably like food, shelter, clothing and education etcetera.
The main demerit associated with having money is that people who have more than required amount of wealth become greedy and start doing illegal activities to earn more money which later becomes their source of evil as well as discomfort in lives.
ConclusionMoney is a powerful tool which can be used for bringing good or bad to the society. If we use it in a right way then it will help us to improve our lives and make us more comfortable but if we misuse it then all of us are going to suffer. So, money is important in life because with this currency we can purchase things that we want and also give charity as well.