A Definition of Money

Money is an item used as a medium of exchange within a community, making the trade of market goods possible.

Many items have served as money. From precious metals and sea shells to cigarette sticks and paper currency. Whatever the scenario, “money” has the characteristic of scarcity. The item’s limited availability gives it a sense of value for the community trading with it.

Modern currency is really a symbol or a token. Simply put, money makes trade easier and quicker, whether between multinational companies trading globally or two individuals settling a deal at a shop downtown.

The Role of Money

People depend on money to acquire essential goods such as food and shelter, but also luxuries such as personal entertainment. As you start making money and learn how to manage it responsibly, you can make more money over time by learning how to make it work for you.

If you have a hard time finding a job, or are not able to work, the Government provides social services such as welfare to give families an allowance so that they can get by. The amount is sufficient for meeting a family’s basic needs but there will likely not be much left after to spend. Welfare programs are not meant to be long-term sources of income; rather they are designed to provide some momentary relief until a regular job is found.