essay what is money

• Search Search Please fill out this field.

What Is Money?

Medium of exchange, impressions create everything, how is money measured, active money, how money is created, the history of american money, the bottom line, what is money definition, history, types, and creation.

Money is any item or medium of exchange that symbolizes perceived value. As a result, it is accepted by people for the payment of goods and services, as well as the repayment of loans. Money makes the world go 'round. Economies rely on money to facilitate transactions and to power financial growth. Typically, it is economists who define money, where it comes from, and what it's worth. Here are the multifaceted characteristics of money.

Key Takeaways

• Money is a medium of exchange; it allows people and businesses to obtain what they need to live and thrive.
• Bartering was one way that people exchanged goods for other goods before money was created.
• Like gold and other precious metals, money has worth because for most people it represents something valuable.
• Fiat money is government-issued currency that is not backed by a physical commodity but by the stability of the issuing government.
• Above all, money is a unit of account - a socially accepted standard unit with which things are priced.

Before the development of a medium of exchange —that is, money—people would barter to obtain the goods and services they needed. Two individuals, each possessing some goods the other wanted, would enter into an agreement to trade.

Early forms of bartering, however, do not provide the transferability and divisibility that makes trading efficient. For instance, if someone has cows but needs bananas, they must find someone who not only has bananas but also the desire for meat. What if that individual finds someone who has the need for meat but no bananas and can only offer potatoes? To get meat, that person must find someone who has bananas and wants potatoes, and so on.

The lack of transferability of bartering for goods is tiring, confusing, and inefficient. But that is not where the problems end; even if the person finds someone with whom to trade meat for bananas, they may not consider a bunch of bananas to be worth a whole cow. Such a trade requires coming to an agreement and devising a way to determine how many bananas are worth certain parts of the cow.

Commodity money solved these problems. Commodity money is a type of good that functions as currency. In the 17th and early 18th centuries, for example, American colonists used beaver pelts and dried corn in transactions. Possessing generally accepted values, these commodities were used to buy and sell other things. The commodities used for trade had certain characteristics: they were widely desired and, therefore, valuable, but they were also durable, portable, and easily stored.

Another, more advanced example of commodity money is a precious metal such as gold. For centuries, gold was used to back paper currency—up until the 1970s. In the case of the U.S. dollar, for example, this meant that foreign governments were able to take their dollars and exchange them at a specified rate for gold with the U.S. Federal Reserve. What's interesting is that, unlike the beaver pelts and dried corn (which can be used for clothing and food, respectively), gold is precious purely because people want it. It is not necessarily useful—you can't eat gold, and it won't keep you warm at night, but the majority of people think it is beautiful, and they know others think it is beautiful. So, gold is something that has worth. Gold, therefore, serves as a physical token of wealth based on people's perceptions.

This relationship between money and gold provides insight into how money gains its value—as a representation of something valuable.

The second type of money is fiat money , which does not require backing by a physical commodity. Instead, the value of fiat currencies is set by supply and demand and people's faith in its worth. Fiat money developed because gold was a scarce resource, and rapidly growing economies growing couldn't always mine enough to back their currency supply requirements. For a booming economy, the need for gold to give money value is extremely inefficient, especially when its value is really created by people's perceptions.

Fiat money becomes the token of people's perception of worth, the basis for why money is created. An economy that is growing is apparently succeeding in producing other things that are valuable to itself and other economies. The stronger the economy, the stronger its money will be perceived (and sought after) and vice versa. However, people's perceptions must be supported by an economy that can produce the products and services that people want.

For example, beginning in 1971, the U.S. dollar was taken off the gold standard—the dollar was no longer redeemable in gold, and the price of gold was no longer fixed to any dollar amount. This was made official in 1976. This meant that it was now possible to create more paper money than there was gold to back it; the health of the U.S. economy backed the dollar's value. If the economy stalls, the value of the U.S. dollar will drop both domestically through inflation and internationally through currency exchange rates. The implosion of the U.S. economy would plunge the world into a financial dark age, so many other countries and entities are working tirelessly to ensure that never happens.

Today, the value of money (not just the dollar, but most currencies) is decided purely by its purchasing power , as dictated by inflation. That is why simply printing new money will not create wealth for a country. Money is created by a kind of a perpetual interaction between real, tangible things, our desire for them, and our abstract faith in what has value. Money is valuable because we want it, but we want it only because it can get us a desired product or service.

But exactly how much money is out there, and what forms does it take? Economists and investors ask this question to determine whether there is inflation or deflation. Money is separated into three categories so that it is more discernible for measurement purposes:

• M1 – This category of money includes all physical denominations of coins and currency; demand deposits, which are checking accounts and NOW accounts; and travelers' checks. It also includes other forms of liquid deposits and assets such as savings accounts. This category of money is the narrowest of the three, and is essentially the money used to buy things and make payments (see the "active money" section below).
• M2 – With broader criteria, this category adds all the money found in M1 to all time-related deposits, many types of retirement accounts, and non-institutional money market funds. This category represents money that can be readily transferred into cash.
• M3 – The broadest class of money, M3 combines all money found in the M2 definition and adds to it all large time deposits, institutional money market funds, short-term repurchase agreements, along with other larger liquid assets. M3 indicates a country's money supply or the total amount of money within an economy.

The M1 category includes what's known as active money—the total value of coins and paper currency in circulation as well as liquid deposits and accounts. The amount of active money fluctuates seasonally, monthly, weekly, and daily. In the United States, Federal Reserve Banks distribute new currency for the U.S. Treasury Department. Banks lend money out to customers, which becomes active money once it is actively circulated.

The variable demand for cash equates to a constantly fluctuating active money total. For example, people typically cash paychecks or withdraw from ATMs over the weekend, so there is more active cash on a Monday than on a Friday. The public demand for cash declines at certain times—following the December holiday season, for example.

We have discussed why and how money, a representation of perceived value, is created in the economy, but another important factor concerning money and the economy is how a country's central bank (the central bank in the United States is the Federal Reserve or the Fed) can influence and manipulate the money supply.

If the Fed wants to increase the amount of money in circulation, perhaps to boost economic activity, the central bank can, of course, print it. However, the physical bills are only a small part of the money supply.

Another way for the central bank to increase the money supply is to buy government fixed-income securities in the market. When the central bank buys these government securities, it puts money into the marketplace, and effectively into the hands of the public. How does a central bank such as the Fed pay for this? As strange as it sounds, the central bank simply creates the money and transfers it to those selling the securities. Alternatively, the Fed can lower interest rates allowing banks to extend low-cost loans or credit—a phenomenon known as cheap money—and encouraging businesses and individuals to borrow and spend.

To shrink the money supply, perhaps to reduce inflation, the central bank does the opposite and sells government securities. The money with which the buyer pays the central bank is essentially taken out of circulation. Keep in mind that we are generalizing in this example to keep things simple.

A central bank cannot print money without end. If too much money is issued, the value of that currency will drop consistent with the law of supply and demand.

Remember, as long as people have faith in the currency, a central bank can issue more of it. But if the Fed issues too much money, the value will go down, as with anything that has a higher supply than demand. Therefore, the central bank cannot simply print money as it wants.

Currency Wars

In the 17th century, Great Britain was determined to keep control of both the American colonies and the natural resources they controlled. To do this, the British limited the money supply and made it illegal for the colonies to mint coins of their own. Instead, the colonies were forced to trade using English bills of exchange that could only be redeemed for English goods. Colonists were paid for their goods with these same bills, effectively cutting them off from trading with other countries.

In response, the colonies regressed to a barter system using ammunition, tobacco, nails, pelts, and anything else that could be traded. Colonists also gathered whatever foreign currencies they could, the most popular being the large, silver Spanish dollars. These were called pieces of eight because, when you had to make change, you pulled out your knife and hacked it into eight bits. From this, we have the expression "two bits," meaning a quarter of a dollar.

Massachusetts Money

Massachusetts was the first colony to defy the mother country. In 1652, the state minted its own silver coins including the Oak Tree and Pine Tree shillings. The state circumvented the British law stating that only the monarch of the British empire could issue coins by dating all their coins in 1652, a period when there was no monarch. In 1690, Massachusetts also issued the first paper money calling it bills of credit.

Tensions between America and Britain continued to mount until the Revolutionary War broke out in 1775. The colonial leaders declared independence and created a new currency called Continentals to finance their side of the war. Unfortunately, each government printed as much money as it needed without backing it to any standard or asset, so the Continentals experienced rapid inflation and became worthless. This experience discouraged the American government from using paper money for almost a century.

Aftermath of the Revolution

The chaos from the Revolutionary War left the new nation's monetary system a complete wreck. Most of the currencies in the newly formed United States of America were useless. The problem wasn't resolved until 13 years later in 1788 when Congress was granted constitutional powers to coin money and regulate its value. In 1792, the Coinage Act was passed establishing the first national mint which created a national monetary system and unit of money, the dollar. There was also a bimetallic standard, meaning that both silver and gold could be valued in and used to back paper dollars.

It took years to get all the foreign coins as well as competing state and local bank currencies out of circulation. Banks issued their own notes during this time period, which was technically illegal as only Congress and the federal government had this power. Most of these banks issued more notes than they had coin to cover, as a result these notes often traded at less than face value.

In the 1860s, the U.S. government created $450 million in legal tender to finance its battle against the Confederacy in the American Civil War. These were called greenbacks because their backs were printed in green. The government-backed this currency and stated that it could be used to pay back both public and private debts. The value did, however, fluctuate according to the North's success or failure at certain stages in the war.

Confederate dollars, issued by the seceding states during the 1860s, followed the fate of the Confederacy and were worthless by the end of the war.

Aftermath of the Civil War

In February 1863, the U.S. Congress passed the National Bank Act. This act established a monetary system whereby national banks issued notes backed by U.S. government bonds. The U.S. Treasury then worked to get state bank notes out of circulation so that the national bank notes would become the only currency.

During this period of rebuilding, there was debate over the bimetallic standard. Some advocated using just silver to back the dollar, others advocated for gold. The situation was resolved in 1900 when the Gold Standard Act was passed, which made gold the sole backing for the dollar. This backing meant that, in theory, you could take your paper money and exchange it for the corresponding value in gold. In 1913, the Federal Reserve was created and given the power to steer the economy by controlling the money supply and interest rates on loans.

What Does Money Symbolize?

In an economic context, money symbolizes perceived value. This allows money to be used as a means of exchanging goods and services. On a personal level, money can symbolize intangible qualities, including wealth, safety, status, and more.

What Is Liquidity?

Liquidity is a measure of how quickly an asset can be converted into legal tender. Cash is the most liquid of all assets. Short-term securities and assets in money market accounts follow. Less liquid assets include physical items like houses, cars, or jewelry. Though they can ultimately be converted into legal tender, it may take time to do so, and a conversion might come with depreciation in value.

What Is the Difference Between Money and Currency?

Money and currency are interrelated but different terms. Currency is one form of money. Often issued by a government, it is one type of payment that people can use within a jurisdiction. Money, however, refers more broadly to a system of perceived value, which allows for the exchange of goods and services.

Money has changed substantially since the days of shells and skins, but its main function hasn't changed at all. Regardless of what form it takes, money offers us a medium of exchange for goods and services and allows the economy to grow as transactions can be completed at greater speeds.

University of Notre Dame. " Commodity Money: Introduction ."

Congressional Research Service. " Brief History of the Gold Standard in the United States ."

Congressional Research Service. " Brief History of the Gold Standard in the United States ," Pages 9-13.

Congressional Research Service. " Brief History of the Gold Standard in the United States ," Page 13.

Federal Reserve. " Money Stock Measures – H.6 Release ."

Federal Reserve Bank of Richmond. " Money Supply ."

Federal Reserve Bank of St Louis. " What Is Quantitative Easing, and How Has It Been Used? "

Harvard Library. " Colonial Currency ."

Federal Reserve Bank of Philadelphia. " Money in Colonial Times ."

The Met. " Shilling ."

Harvard Library. " Continental Currency ."

United States Mint. " History of the U.S. Mint ."

Congressional Research Service. " Brief History of the Gold Standard in the United States ," Page 2.

American Numismatic Society. " A History of American Currency ."

Encyclopedia Britannica. " Greenback Movement ."

Harvard Library. " Civil War Currency ."

Federal Reserve Bank of San Francisco. " American Currency Exhibit: Civil War ."

Federal Reserve History. " National Banking Acts of 1863 and 1864 ."

Congressional Research Service. " Brief History of the Gold Standard in the United States ," Pages 8-9.

• Terms of Service
• Editorial Policy
• Privacy Policy

Essays About Money: Top 5 Examples and 6 Prompts

With money comes great power; however, power must always come with responsibility. Discover thought-provoking essays about money in our guide.

Money is everywhere. We use it to eat, drink, clothe ourselves, and get shelter, among many other uses. Nowadays, it is an undisputed fact that “money makes the world go round.” The earliest known form of money dates back to around 5,000 years ago ; trade was previously carried out using a barter system. However, over the centuries, more and more nations began implementing a currency system, and money has become more critical. 

In the contemporary world, it seems to be “all about money.” However, it is important not to lose sight of what is important; we must maintain good physical and mental health and healthy relationships with the people around us. Money is necessary; it is just not the only thing necessary. To start your essay, read these examples to write insightful essays about money. 

5 Top Examples On Essay About Money

1. essay on money by prasanna, 2. how money changed human history by jacob wilkins, 3. capitalism: money that make money by ernestine montgomery, 4.  is money the most important thing by seth higgins.

• 5. ​​An Introduction to Saving Money by Jeremy Vohwinkle

Writing Prompts For Essays About Money

1. good uses for money, 2. the “dark side” of money, 3. money’s role in history, 4. morality vs. money, 5. can money buy happiness, 6. how to save money.

“Imagine the world without money. We will eventually come to a point where we will be asking questions like “what’s the point of life”. Hope and goals are some of the important things that will keep a man going in life. Without any sense of achievement or motivation, there wouldn’t be any inventions or progress in the world. People work to get money and then people work harder to get more money. This cycle of life that keeps a man motivated and hopeful is one of the biggest advantages of the system of money”

This essay gives readers a general outlook on money and its advantages and disadvantages. It gives people equal opportunity to work for their dreams and motivates them to be productive members of society, while it also raises the question of greed. Money, without a doubt, has its positive and negative aspects, but it exists and is only becoming more critical.

“But the barter economy was flawed. There was no universal measure for determining the value of an item. It was all based on the subjective opinion of the individuals involved. And to make matters worse, the barter economy relied on both sides wanting something the other had to offer. Trade, therefore, could be sluggish and frustrating. Human beings needed something different, and money was the answer.”

Wilkins writes about how money revolutionized the way trade was conducted. The barter system involved trading any objects if both parties agreed to a deal, such as trading animal skins for fish or medicine for timber. However, the only measure of an item’s value was how much one party wanted it- both sides needed to have something the other wanted. The introduction of money allowed people to put a solid value on commodities, making trade easier.  

“So, if you were to closely observe the dirty, disordered canvas of economic progress during the 20th and 21 st century, you should conclude that, for all its warts, capitalism has been the winner. It has sometimes caused pain; suffered from serious cycles; and often needed the clout of the state- such as we have seen from September 2008. It has also been quite resistant to sensible regulation. Even so, the basic institutions of capitalism have worked, not just in the US and the OECD (Organization for Economic Co-operation and development) nations, but also many developing countries, of which India is one.”

Albeit lengthy, Montgomery’s essay discusses the debate between socialism and capitalism, a topic of which money is at the core. Montgomery describes Karl Marx’s criticism of capitalism: all the money goes to a few people, not the workers. She believes these are valid to an extent and criticizes certain forms of capitalism and socialism. Neither capitalism nor socialism is perfect, but according to Montgomery, capitalism creates a better economy. 

“Being the richest man in the world does not mean you are the happiest man in the world, although money can buy you happiness sometimes, but not always. If we could all appreciate the way life is, the fun, and the beauty I think the world would be better. If people weren’t power hungry maybe we’d have a lesser demand for money. Those people who is money hungry and power hungry need to relax. Money can’t buy you happiness. These individuals need to understand that.”

Higgins implores readers to remember that money is not the only thing people need in the world. He stresses the necessity of money, as it is used to pay for various necessary goods and services; however, he believes it is not a prerequisite for happiness. Material things are temporary, and there are other things we should focus on, like family and friends. 

5. ​​ An Introduction to Saving Money by Jeremy Vohwinkle

“A financial emergency may take the form of a job loss, significant medical or dental expense, unexpected home or auto repairs, a hurricane or major storm, or something unthinkable, such as a global pandemic. The last thing you want to do is to rely on credit cards with their hefty interest fees or to be forced to take out a loan. That’s where your emergency fund can come in handy. Historically, the formula for an emergency account is to have enough readily available cash to cover three to six months of living expenses.“

Vohwinkle’s essay gives readers some suggestions on how to save more money. Most importantly, he suggests setting up an emergency fund, as all other saving techniques stem from there. He also suggests creating an automatic savings plan and cutting down on “spending leaks,” like buying coffee. You might also be interested in these essays about celebration .

In this essay, write about why money is necessary and the ways to use it for the greater good, and include ways in which it can be used (investing, donating, etc.). For each point, you make, be sure to explain why. Of course, this is entirely subjective; feel free to write about what you consider “good uses” for money. 

On the other hand, money also has a negative side —research on money-related issues, such as taxpayer-funded corruption and trading of illegal goods. In your essay, explore this side of money and perhaps give solutions on how to stop these problems. 

Money has played a progressively more important role throughout human history. Discuss the development of currency and the economy, from the barter system to the digital world we live in today. You need not go too in-depth, as there is a lot of ground to cover and many eras to research. Be sure to cite reputable sources when discussing history. 

Many people warn of “selling your soul” for financial gain. In your essay, you can write about the importance of having solid values in this day and age, where money reigns supreme. What principles do you need to keep in mind? Explain how you can still value money while staying grounded; mention the balance between material needs and others. 

As stated in Higgins’ essay, more people have begun to prioritize money over all else. Do you believe that money is truly the most important thing? Can it alone make you happy? Discuss both sides of this question and choose your position accordingly. Be sure to provide precise supporting details for a stronger argument. 

Enumerate tips on how you can save money. Anything works, from saving certain things for special occasions to buying more food in the grocery rather than eating out. This is your opinion; however, feel free to consult online sources and the people around you for extra advice. 

For help with your essays, check out our round-up of the best essay checkers .If you’re still stuck, check out our general resource of essay writing topics .

Essay on Money

Money is a significant part of human civilisation. It is difficult to think about the world without money. Everybody needs money for various purposes, starting from day-to-day transactions to savings for the future. But if we go back to history, we will find that before money came into existence, there was a barter system to facilitate transactions among individuals in society. With the development of civilisation over time, the barter system lost its ground and was replaced by money. This essay on money will provide ideas to students so they can effectively write essays on this topic. They can also check out the list of CBSE Essays to practise more essays on different topics and boost their writing skills.

500+ Words Essay on Money

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts which also acts as a standard of deferred payments. The main functions of money are distinguished as: a medium of exchange, a unit of account and a store of value. The money supply of a country consists of currency (banknotes and coins) and bank money. Bank money usually forms the largest part of the money supply.

With the help of money, we can fulfil our dream. We can go on trips to various places, eat tasty food, buy a beautiful house and can buy any luxury items. Many businessmen earn a lot of money by making profits from their businesses. They provide services or make products that people need and make money from them. Now, there are many industries and startups which have set up their business and gained success. But still, there are many people who use illegal modes to earn money and become a part of corruption.

Significance of Money in Economy

Money plays an important role in shaping the economy of any country. Money can stimulate or even hamper economic progress. Money affects the income, output, employment, consumption and economic welfare of the community at large. Money through its purchasing power increases consumption and, as a store of value, increases investment, and employment and leads to economic development.

Demonetisation in India

The Prime Minister of India, Narendra Modi, announced demonetisation on 8th November 2016, where Rs 500 and Rs 1000 notes were withdrawn from circulation. It was a major event of the year 2016. The demonetisation decision was taken by the Government in consultation with the RBI. The action was taken to tackle Black Money which is available in various forms like cash, investment in property and real estate, luxury goods like jewellery or with foreign currency dealers and private financiers. The target was to curb the use of black money.

The other motto of demonetisation was to reduce corruption. With demonetisation, the cash in the hands of corrupt people becomes useless, and if the same is deposited in the banks, it loses anonymity, and the person has to pay taxes on the said amount.

The demonetisation also helped in promoting digitalisation through online transactions. A large section of the Indian economy was being run on the cash system, which does not get captured by the tax department as it does not leave any trail. So, the Government thought about promoting digitisation and formalisation of the economy through online transactions, e-wallets, and various payment instruments like Paytm, Rupay cards, the BHIM app etc. The beauty of these instruments is that the entire economic activity gets captured. It reduces tax evasion and improves tax collection.

Students must have found this essay on money useful for improving their essay-writing skills. They can get the study material and the latest updates on CBSE/ICSE/State Board/Competitive Exams, at BYJU’S.

Leave a Comment Cancel reply

Your Mobile number and Email id will not be published. Required fields are marked *

Request OTP on Voice Call

Post My Comment

Register with BYJU'S & Download Free PDFs

Register with byju's & watch live videos.

Essay on Money for Students and Children

500+ words essay on money.

Money is an essential need to survive in the world. In today’s world, almost everything is possible with money. Moreover, you can fulfill any of your dreams by spending money. As a result, people work hard to earn it. Our parents work hard to fulfill our dreams .

Furthermore various businessmen , entrepreneurs have startup businesses to earn profits. They have made use of their skills and intelligence in getting an upper hand in earning. Also, the employee sector works day and night to complete their tasks given to them. But still, there are many people who take shortcuts to success and get involved in corruption.

Black Money

Black money is the money that people earn with corruption . For your information corruption involves the misuse of the power of high posts. For instance, it involves taking bribes, extra money for free services, etc. Corruption is the main cause of the lack of proper growth of the country .

Moreover, money that people having authority earns misusing their powers is black money. Furthermore, these earnings do not have proper documentation. As a result, the people who earn this do not pay income tax . Which is a great offense and the person who does this can be behind bars.

Money Laundering

In simple terms, money laundering is converting black money into white money. Also, this is another illegal offense. Furthermore, money laundering also encourages various crimes. Because it is the only way criminal can use their money from illegal sources. Money laundering is a crime, and the people who practice it are liable to go to jail.

Therefore the Government is taking various preventive measures to abolish money laundering. The government is linking bank accounts to AADHAR Card. To get all the transaction detail of each bank account. As a result, the government comes to know if any transaction is from an illegal source .

Also, every bank account has its own KYC (Know your Customer) this separates different categories of income of people. Businessmen are in the high-risk category. Then comes the people who are on a high post they are in the medium-risk category. Further, the last category is of the Employee sector they are at the lowest risk.

Get the huge list of more than 500 Essay Topics and Ideas

White Money

White money is the money that people earn through legal sources. Moreover, it is the money on which the people have already paid the tax. The employee sector of any company always has white money income.

Because the tax is already levied on their income. Therefore the safest way to earn money is in the employment sector. But your income will be limited here. As a result, many people take a different path and choose entrepreneurship. This helps them in starting their own company and make profitable incomes .

Every person in this world works hard to earn money. People try different methods and set of skills to increase their incomes. But it is always not about earning money, it’s about saving and spending it. People should spend money wisely. Moreover, things should always be bought by judging their worth. Because money is not precious but the efforts you make for it are.

Q1. What is Black Money?

A1. Black money is the money that people earn through illegal ways. It is strictly prohibited in our country. And the people who have it can go to jail.

Q2. What is the difference between Black money and White money?

A2. The difference between black money and white money is, Black money comes from illegal earnings. But white money comes from legal sources with taxation levied on it.

Customize your course in 30 seconds

Which class are you in.

• Travelling Essay
• Picnic Essay
• Our Country Essay
• My Parents Essay
• Essay on Favourite Personality
• Essay on Memorable Day of My Life
• Essay on Knowledge is Power
• Essay on Gurpurab
• Essay on My Favourite Season
• Essay on Types of Sports

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Download the App

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

24.1 What Is Money?

Learning objectives.

• Define money and discuss its three basic functions.
• Distinguish between commodity money and fiat money, giving examples of each.
• Define what is meant by the money supply and tell what is included in the Federal Reserve System’s two definitions of it (M1 and M2).

If cigarettes and mackerel can be used as money, then just what is money? Money is anything that serves as a medium of exchange. A medium of exchange is anything that is widely accepted as a means of payment. In Romania under Communist Party rule in the 1980s, for example, Kent cigarettes served as a medium of exchange; the fact that they could be exchanged for other goods and services made them money.

Money, ultimately, is defined by people and what they do. When people use something as a medium of exchange, it becomes money. If people were to begin accepting basketballs as payment for most goods and services, basketballs would be money. We will learn in this chapter that changes in the way people use money have created new types of money and changed the way money is measured in recent decades.

The Functions of Money

Money serves three basic functions. By definition, it is a medium of exchange. It also serves as a unit of account and as a store of value—as the “mack” did in Lompoc.

A Medium of Exchange

The exchange of goods and services in markets is among the most universal activities of human life. To facilitate these exchanges, people settle on something that will serve as a medium of exchange—they select something to be money.

We can understand the significance of a medium of exchange by considering its absence. Barter occurs when goods are exchanged directly for other goods. Because no one item serves as a medium of exchange in a barter economy, potential buyers must find things that individual sellers will accept. A buyer might find a seller who will trade a pair of shoes for two chickens. Another seller might be willing to provide a haircut in exchange for a garden hose. Suppose you were visiting a grocery store in a barter economy. You would need to load up a truckful of items the grocer might accept in exchange for groceries. That would be an uncertain affair; you could not know when you headed for the store which items the grocer might agree to trade. Indeed, the complexity—and cost—of a visit to a grocery store in a barter economy would be so great that there probably would not be any grocery stores! A moment’s contemplation of the difficulty of life in a barter economy will demonstrate why human societies invariably select something—sometimes more than one thing—to serve as a medium of exchange, just as prisoners in federal penitentiaries accepted mackerel.

A Unit of Account

Ask someone in the United States what he or she paid for something, and that person will respond by quoting a price stated in dollars: “I paid $75 for this radio,” or “I paid $15 for this pizza.” People do not say, “I paid five pizzas for this radio.” That statement might, of course, be literally true in the sense of the opportunity cost of the transaction, but we do not report prices that way for two reasons. One is that people do not arrive at places like Radio Shack with five pizzas and expect to purchase a radio. The other is that the information would not be very useful. Other people may not think of values in pizza terms, so they might not know what we meant. Instead, we report the value of things in terms of money.

Money serves as a unit of account , which is a consistent means of measuring the value of things. We use money in this fashion because it is also a medium of exchange. When we report the value of a good or service in units of money, we are reporting what another person is likely to have to pay to obtain that good or service.

A Store of Value

The third function of money is to serve as a store of value , that is, an item that holds value over time. Consider a $20 bill that you accidentally left in a coat pocket a year ago. When you find it, you will be pleased. That is because you know the bill still has value. Value has, in effect, been “stored” in that little piece of paper.

Money, of course, is not the only thing that stores value. Houses, office buildings, land, works of art, and many other commodities serve as a means of storing wealth and value. Money differs from these other stores of value by being readily exchangeable for other commodities. Its role as a medium of exchange makes it a convenient store of value.

Because money acts as a store of value, it can be used as a standard for future payments. When you borrow money, for example, you typically sign a contract pledging to make a series of future payments to settle the debt. These payments will be made using money, because money acts as a store of value.

Money is not a risk-free store of value, however. We saw in the chapter that introduced the concept of inflation that inflation reduces the value of money. In periods of rapid inflation, people may not want to rely on money as a store of value, and they may turn to commodities such as land or gold instead.

Types of Money

Although money can take an extraordinary variety of forms, there are really only two types of money: money that has intrinsic value and money that does not have intrinsic value.

Commodity money is money that has value apart from its use as money. Mackerel in federal prisons is an example of commodity money. Mackerel could be used to buy services from other prisoners; they could also be eaten.

Gold and silver are the most widely used forms of commodity money. Gold and silver can be used as jewelry and for some industrial and medicinal purposes, so they have value apart from their use as money. The first known use of gold and silver coins was in the Greek city-state of Lydia in the beginning of the seventh century B.C. The coins were fashioned from electrum, a natural mixture of gold and silver.

One disadvantage of commodity money is that its quantity can fluctuate erratically. Gold, for example, was one form of money in the United States in the 19th century. Gold discoveries in California and later in Alaska sent the quantity of money soaring. Some of this nation’s worst bouts of inflation were set off by increases in the quantity of gold in circulation during the 19th century. A much greater problem exists with commodity money that can be produced. In the southern part of colonial America, for example, tobacco served as money. There was a continuing problem of farmers increasing the quantity of money by growing more tobacco. The problem was sufficiently serious that vigilante squads were organized. They roamed the countryside burning tobacco fields in an effort to keep the quantity of tobacco, hence money, under control. (Remarkably, these squads sought to control the money supply by burning tobacco grown by other farmers.)

Another problem is that commodity money may vary in quality. Given that variability, there is a tendency for lower-quality commodities to drive higher-quality commodities out of circulation. Horses, for example, served as money in colonial New England. It was common for loan obligations to be stated in terms of a quantity of horses to be paid back. Given such obligations, there was a tendency to use lower-quality horses to pay back debts; higher-quality horses were kept out of circulation for other uses. Laws were passed forbidding the use of lame horses in the payment of debts. This is an example of Gresham’s law: the tendency for a lower-quality commodity (bad money) to drive a higher-quality commodity (good money) out of circulation. Unless a means can be found to control the quality of commodity money, the tendency for that quality to decline can threaten its acceptability as a medium of exchange.

But something need not have intrinsic value to serve as money. Fiat money is money that some authority, generally a government, has ordered to be accepted as a medium of exchange. The currency —paper money and coins—used in the United States today is fiat money; it has no value other than its use as money. You will notice that statement printed on each bill: “This note is legal tender for all debts, public and private.”

Checkable deposits , which are balances in checking accounts, and traveler’s checks are other forms of money that have no intrinsic value. They can be converted to currency, but generally they are not; they simply serve as a medium of exchange. If you want to buy something, you can often pay with a check or a debit card. A check is a written order to a bank to transfer ownership of a checkable deposit. A debit card is the electronic equivalent of a check. Suppose, for example, that you have $100 in your checking account and you write a check to your campus bookstore for $30 or instruct the clerk to swipe your debit card and “charge” it $30. In either case, $30 will be transferred from your checking account to the bookstore’s checking account. Notice that it is the checkable deposit, not the check or debit card, that is money . The check or debit card just tells a bank to transfer money, in this case checkable deposits, from one account to another.

What makes something money is really found in its acceptability, not in whether or not it has intrinsic value or whether or not a government has declared it as such. For example, fiat money tends to be accepted so long as too much of it is not printed too quickly. When that happens, as it did in Russia in the 1990s, people tend to look for other items to serve as money. In the case of Russia, the U.S. dollar became a popular form of money, even though the Russian government still declared the ruble to be its fiat money.

The term money , as used by economists and throughout this book, has the very specific definition given in the text. People can hold assets in a variety of forms, from works of art to stock certificates to currency or checking account balances. Even though individuals may be very wealthy, only when they are holding their assets in a form that serves as a medium of exchange do they, according to the precise meaning of the term, have “money.” To qualify as “money,” something must be widely accepted as a medium of exchange.

Measuring Money

The total quantity of money in the economy at any one time is called the money supply . Economists measure the money supply because it affects economic activity. What should be included in the money supply? We want to include as part of the money supply those things that serve as media of exchange. However, the items that provide this function have varied over time.

Before 1980, the basic money supply was measured as the sum of currency in circulation, traveler’s checks, and checkable deposits. Currency serves the medium-of-exchange function very nicely but denies people any interest earnings. (Checking accounts did not earn interest before 1980.)

Over the last few decades, especially as a result of high interest rates and high inflation in the late 1970s, people sought and found ways of holding their financial assets in ways that earn interest and that can easily be converted to money. For example, it is now possible to transfer money from your savings account to your checking account using an automated teller machine (ATM), and then to withdraw cash from your checking account. Thus, many types of savings accounts are easily converted into currency.

Economists refer to the ease with which an asset can be converted into currency as the asset’s liquidity . Currency itself is perfectly liquid; you can always change two $5 bills for a $10 bill. Checkable deposits are almost perfectly liquid; you can easily cash a check or visit an ATM. An office building, however, is highly illiquid. It can be converted to money only by selling it, a time-consuming and costly process.

As financial assets other than checkable deposits have become more liquid, economists have had to develop broader measures of money that would correspond to economic activity. In the United States, the final arbiter of what is and what is not measured as money is the Federal Reserve System. Because it is difficult to determine what (and what not) to measure as money, the Fed reports several different measures of money, including M1 and M2.

M1 is the narrowest of the Fed’s money supply definitions. It includes currency in circulation, checkable deposits, and traveler’s checks. M2 is a broader measure of the money supply than M1. It includes M1 and other deposits such as small savings accounts (less than $100,000), as well as accounts such as money market mutual funds (MMMFs) that place limits on the number or the amounts of the checks that can be written in a certain period.

M2 is sometimes called the broadly defined money supply, while M1 is the narrowly defined money supply. The assets in M1 may be regarded as perfectly liquid; the assets in M2 are highly liquid, but somewhat less liquid than the assets in M1. Even broader measures of the money supply include large time-deposits, money market mutual funds held by institutions, and other assets that are somewhat less liquid than those in M2. Figure 24.1 “The Two Ms: October 2010” shows the composition of M1 and M2 in October 2010.

Figure 24.1 The Two Ms: October 2010

M1, the narrowest definition of the money supply, includes assets that are perfectly liquid. M2 provides a broader measure of the money supply and includes somewhat less liquid assets. Amounts represent money supply data in billions of dollars for October 2010, seasonally adjusted.

Source : Federal Reserve Statistical Release H.6, Tables 3 and 4 (December 2, 2010). Amounts are in billions of dollars for October 2010, seasonally adjusted.

Credit cards are not money. A credit card identifies you as a person who has a special arrangement with the card issuer in which the issuer will lend you money and transfer the proceeds to another party whenever you want. Thus, if you present a MasterCard to a jeweler as payment for a $500 ring, the firm that issued you the card will lend you the $500 and send that money, less a service charge, to the jeweler. You, of course, will be required to repay the loan later. But a card that says you have such a relationship is not money, just as your debit card is not money.

With all the operational definitions of money available, which one should we use? Economists generally answer that question by asking another: Which measure of money is most closely related to real GDP and the price level? As that changes, so must the definition of money.

In 1980, the Fed decided that changes in the ways people were managing their money made M1 useless for policy choices. Indeed, the Fed now pays little attention to M2 either. It has largely given up tracking a particular measure of the money supply. The choice of what to measure as money remains the subject of continuing research and considerable debate.

Key Takeaways

• Money is anything that serves as a medium of exchange. Other functions of money are to serve as a unit of account and as a store of value.
• Money may or may not have intrinsic value. Commodity money has intrinsic value because it has other uses besides being a medium of exchange. Fiat money serves only as a medium of exchange, because its use as such is authorized by the government; it has no intrinsic value.
• The Fed reports several different measures of money, including M1 and M2.

Which of the following are money in the United States today and which are not? Explain your reasoning in terms of the functions of money.

• A Van Gogh painting

Case in Point: Fiat-less Money

Figure 24.2

Michael Mandiberg – 1 million iraqi dinar – CC BY-SA 2.0.

“We don’t have a currency of our own,” proclaimed Nerchivan Barzani, the Kurdish regional government’s prime minister in a news interview in 2003. But, even without official recognition by the government, the so-called “Swiss” dinar certainly seemed to function as a fiat money. Here is how the Kurdish area of northern Iraq, during the period between the Gulf War in 1991 and the fall of Saddam Hussein in 2003, came to have its own currency, despite the pronouncement of its prime minister to the contrary.

After the Gulf War, the northern, mostly Kurdish area of Iraq was separated from the rest of Iraq though the enforcement of the no-fly-zone. Because of United Nations sanctions that barred the Saddam Hussein regime in the south from continuing to import currency from Switzerland, the central bank of Iraq announced it would replace the “Swiss” dinars, so named because they had been printed in Switzerland, with locally printed currency, which became known as “Saddam” dinars. Iraqi citizens in southern Iraq were given three weeks to exchange their old dinars for the new ones. In the northern part of Iraq, citizens could not exchange their notes and so they simply continued to use the old ones.

And so it was that the “Swiss” dinar for a period of about 10 years, even without government backing or any law establishing it as legal tender, served as northern Iraq’s fiat money. Economists use the word “ fiat ,” which in Latin means “let it be done,” to describe money that has no intrinsic value. Such forms of money usually get their value because a government or authority has declared them to be legal tender, but, as this story shows, it does not really require much “fiat” for a convenient, in-and-of-itself worthless, medium of exchange to evolve.

What happened to both the “Swiss” and “Saddam” dinars? After the Coalition Provisional Authority (CPA) assumed control of all of Iraq, Paul Bremer, then head of the CPA, announced that a new Iraqi dinar would be exchanged for both of the existing currencies over a three-month period ending in January 2004 at a rate that implied that one “Swiss” dinar was valued at 150 “Saddam” dinars. Because Saddam Hussein’s regime had printed many more “Saddam” dinars over the 10-year period, while no “Swiss” dinars had been printed, and because the cheap printing of the “Saddam” dinars made them easy to counterfeit, over the decade the “Swiss” dinars became relatively more valuable and the exchange rate that Bremer offered about equalized the purchasing power of the two currencies. For example, it took about 133 times as many “Saddam” dinars as “Swiss” dinars to buy a man’s suit in Iraq at the time. The new notes, sometimes called “Bremer” dinars, were printed in Britain and elsewhere and flown into Iraq on 22 flights using Boeing 747s and other large aircraft. In both the northern and southern parts of Iraq, citizens turned in their old dinars for the new ones, suggesting at least more confidence at that moment in the “Bremer” dinar than in either the “Saddam” or “Swiss” dinars.

Sources : Mervyn A. King, “The Institutions of Monetary Policy” (lecture, American Economics Association Annual Meeting, San Diego, January 4, 2004), available at http://www.bankofengland.co.uk/speeches/speech208.pdf . Hal R. Varian, “Paper Currency Can Have Value without Government Backing, but Such Backing Adds Substantially to Its Value,” New York Times , January 15, 2004, p. C2.

Answer to Try It! Problem

• Gold is not money because it is not used as a medium of exchange. In addition, it does not serve as a unit of account. It may, however, serve as a store of value.
• A Van Gogh painting is not money. It serves as a store of value. It is highly illiquid but could eventually be converted to money. It is neither a medium of exchange nor a unit of account.
• A dime is money and serves all three functions of money. It is, of course, perfectly liquid.

Principles of Economics Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Essay on Money

Introduction to The Power and Perils of Money

“Where Money Talks, Values Listen.”

Money is a fundamental aspect of modern society, serving as the lifeblood of economies and a cornerstone of daily life. Money holds immense significance in our lives, from facilitating transactions to influencing social dynamics. In this essay, we delve into the multifaceted nature of money, exploring its origins, functions, and profound impact on individuals and society.

As we navigate the complexities of money, we’ll unravel its historical roots, examine its various forms and functions, and delve into its role as a catalyst for economic growth and social change. Furthermore, we’ll explore the intricacies of personal finance, discussing the importance of financial literacy and responsible money management in achieving financial stability and well-being.

Watch our Demo Courses and Videos

Valuation, Hadoop, Excel, Mobile Apps, Web Development & many more.

Beyond its economic implications, we’ll also explore the broader societal effects of money, including its role in shaping social hierarchies, perpetuating economic inequality, and influencing political landscapes. Ultimately, this essay aims to provide a comprehensive understanding of the significance of money in our lives, shedding light on its profound impact on both individual prosperity and societal dynamics.

Origin and Evolution of Money

Money has been an essential part of human civilizations for thousands of years in all its manifestations. From basic barter systems to complex financial tools of the present day, money has always been important. Understanding the origin and evolution of money provides crucial insights into its significance and impact on society.

1. Barter Economy and the Emergence of Money:

• Barter System: In primitive societies, individuals engaged in barter, exchanging goods and services based on mutual needs, with each person trading one commodity for another. Limitations of the barter system, including the “double coincidence of wants,” led to inefficiencies and logistical challenges.
• Evolution to Commodity Money: Commodity money emerged as a solution to the shortcomings of barter, with certain items, such as cattle, grains, or precious metals, gaining widespread acceptance as mediums of exchange. Commodity money possessed intrinsic value and was universally recognized, facilitating trade and commerce across regions.

2. Development of Metal Coins:

• Introduction of Metal Coins: Metal coins, particularly gold and silver, emerged as standardized forms of currency in ancient civilizations, including Mesopotamia, Egypt, and Greece. Metal coins facilitated trade by providing a convenient and durable medium of exchange, standardized in terms of weight and purity.
• Coinage and State Authority: The minting of coins became centralized under the authority of states and rulers, leading to the establishment of monetary systems and the issuing of official currency. Coinage symbolized the sovereignty and power of states, with rulers often inscribing their images and symbols on coins as a means of propaganda and control.

3. Transition to Fiat Money:

• Rise of Paper Money: With the expansion of trade and commerce, the need for a more flexible and portable form of money led to the introduction of paper currency. Paper money initially represented claims to a specific quantity of precious metals, serving as promissory notes issued by banks and governments.
• Decoupling from Precious Metals: Over time, central banks and governments gradually abandoned the linkage between paper money and precious metals, transitioning currencies to fiat money and deriving their value from the trust and confidence of users rather than intrinsic value. Adopting fiat money allowed for greater flexibility in monetary policy and facilitated the expansion of credit and financial markets.

4. Evolution of Digital and Cryptocurrencies:

• Digital Currency: Digital currencies, electronic records with monetary value saved in digital form, result from the Internet’s and electronic banking’s development. Digital currencies, such as electronic bank transfers and payment systems, revolutionized how money is transferred and accessed, offering convenience and efficiency.
• Cryptocurrencies: Blockchain -based cryptocurrencies, like Ethereum and Bitcoin , are examples of decentralized digital money. Cryptocurrencies provide increased privacy, security, and decentralization but also present regulatory and stability concerns because they function independently of governments and central banks.

The Basic Need for Money

• Meeting Basic Needs: Money is essential for meeting basic human needs, such as food, shelter, clothes, and healthcare. Access to money enables individuals to purchase necessary goods and services for survival and well-being, ensuring a decent standard of living.
• Facilitating Economic Transactions: Money serves as a medium of exchange, enabling the exchange of goods and services in the marketplace. It enables individuals to engage in economic transactions, buy goods, pay for services, and participate in economic activities that contribute to economic growth and development.
• Access to Education and Skills Development: Money is necessary for education and skills development opportunities. Investing in education and training enhances individuals’ knowledge, skills, and employability, leading to better job prospects and higher earning potential.
• Healthcare and Medical Services: Money is vital for healthcare services and medical treatment. Individuals require financial resources to pay for medical expenses, health insurance, and access to quality healthcare facilities, ensuring their physical well-being and addressing health-related concerns.
• Housing and Shelter: Money is essential for securing housing and shelter providing individuals and families with a safe and stable living environment. Access to affordable housing options requires financial resources for rent, mortgage payments, or property ownership, ensuring adequate housing for individuals and communities.
• Transportation and Mobility: Money facilitates transportation and mobility, enabling individuals to travel for work, education, healthcare, and recreational purposes. Access to transportation choices, such as public transit, vehicles, or ride-sharing services, requires financial resources to cover transportation costs and maintain mobility.
• Emergency Preparedness and Resilience: Money is crucial for building emergency funds and financial resilience. Having savings and financial resources enables individuals to prepare for unexpected expenses, emergencies, and financial setbacks, providing a safety net during challenging times.
• Social and Recreational Activities: Money plays a role in accessing social and recreational activities that contribute to overall well-being and quality of life. Participating in leisure activities, entertainment, and social events often requires financial resources to cover expenses related to leisure pursuits and social engagements.

The Role of Money in Society

Money is a cornerstone of societal structures, influencing economic activities, social relationships, and individual well-being. Its multifaceted role extends beyond a mere medium of exchange, encompassing various functions integral to modern societies’ functioning.

1. Economic Significance of Money:

• Facilitating Trade and Commerce: Money acts as a universally accepted medium of exchange, facilitating the soft flow of goods and facilities in the market. Eliminating the need for direct barter enhances efficiency and encourages specialization in production.
• Measurement of Value: Money provides a common unit of account, allowing for the standardized measurement of the value of different goods and services. This function enables individuals to compare prices, make informed decisions, and confidently engage in economic transactions.
• Economic Growth and Development: A stable and reliable monetary system fosters economic growth and development . Governments and central banks use monetary policy tools to regulate money supply, interest rates, and inflation to maintain economic stability.

2. Social Significance of Money:

• Influence on Social Status and Power: The possession of wealth and financial resources often correlates with social status and power within a community. Economic disparities can create social hierarchies, impacting individuals’ access to opportunities and resources.
• Impact on Lifestyle and Standard of Living: The availability of financial resources influences an individual’s lifestyle and standard of living. Money provides access to education, healthcare, housing, and other essential services, shaping the quality of life for individuals and communities.

3. Money and Personal Finance:

• Importance of Financial Literacy: Financial education empowers people to make informed decisions about earning, spending, saving, and investing. Understanding the principles of personal finance is essential for achieving financial security and long-term well-being.
• Managing Personal Finances: Budgeting, saving, and investing are key to effective personal finance management. Individuals must make strategic financial decisions to meet their short-term and long-term goals.
• Psychological Aspects of Money: People often tie money to their emotions and psychological well-being. Developing a healthy money mindset involves understanding one’s relationship with money and addressing any emotional factors that may impact financial decisions.

4. Impact of Money on Society:

• Economic Inequality: The distribution of wealth and income in society can contribute to economic inequality. Addressing issues of inequality requires a nuanced understanding of the role of money and the implementation of policies that promote equitable wealth distribution.
• Consumerism and Materialism: Money influences consumer behavior , contributing to a culture of consumerism and materialism. Society’s emphasis on material possessions can impact individuals’ values and priorities.
• Influence on Politics and Governance: Money plays a significant role in political processes, affecting campaigns, lobbying, and policy decisions. The intersection of money and politics raises questions about transparency, accountability, and the democratic process.
• Environmental Implications: Economic activities driven by the pursuit of profit can have environmental consequences. Balancing economic growth with environmental sustainability requires careful consideration of the environmental impact of monetary and economic policies.

Functions of Money

• Medium of Exchange
• Money is a widely acknowledged medium of exchange for goods and services, facilitating transactions between buyers and sellers.
• It eliminates the inefficiencies of barter by providing a common unit of value that simplifies the exchange process.
• Unit of Account:
• Money provides a standardized unit of measurement for the value of goods and services, permitting easy comparison of prices and making economic calculations more efficient.
• It enables individuals and businesses to express the relative worth of different goods and services in terms of a common currency.
• Store of Value:
• Money serves as a store of value, permitting individuals to hold and accumulate wealth over time.
• Unlike perishable goods or assets with fluctuating value, money retains its purchasing power over extended periods, providing a reliable means of preserving wealth.
• Standard of Deferred Payment:
• Money facilitates transactions involving future obligations by serving as a medium for deferred payments.
• Contracts, loans, and other financial agreements often stipulate payments in a specific currency, with money as the standard for settling debts and fulfilling obligations.
• Money’s high liquidity enables it to be readily convertible into goods, services, or other assets without experiencing a significant loss of value.
• Its liquidity enables individuals to quickly access funds for urgent expenses or investment opportunities, contributing to economic flexibility and efficiency.
• Measure of Value:
• Money is a measure of value, providing a common denominator for expressing the worth of different goods and services.
• Its role as a measure of value facilitates economic decision-making, allowing individuals to assess the relative utility and worth of various goods and services.
• Facilitates Specialization and Efficiency:
• Money enables specialization and division of labor by allowing individuals and businesses to focus on producing goods and assistance in which they have a comparative advantage.
• Specialization leads to increased productivity and efficiency, driving economic growth and prosperity.
• Portability and Durability:
• Money is highly portable and durable, making it a convenient medium of interaction for transactions of varying sizes and distances.
• The physical forms of money (such as coins and banknotes) and their digital representation ensure ease of transportation and storage, contributing to its widespread use in modern economies.

The Ethics and Morality of Money

While essential for economic transactions and societal functioning, money raises ethical and moral considerations beyond its economic utility. From wealth distribution issues to the impact of financial decisions on individuals and society, exploring the ethical dimensions of money sheds light on complex moral dilemmas and societal values.

• Wealth Distribution and Economic Inequality: One of the most significant ethical concerns about money is the unequal distribution of wealth and income within societies. Critics argue that extreme wealth disparities contribute to social injustice and perpetuate systemic inequalities, raising questions about fairness and equity.
• Social Responsibility of Wealth: Accumulating wealth brings with it a moral obligation to contribute to society’s well-being. Concepts like philanthropy, corporate social responsibility, and impact investing highlight the ethical imperative for individuals and organizations to use their financial resources for the greater good.
• Ethical Consumption and Consumerism: Consumerism fueled by the pursuit of material wealth raises ethical questions about consumption patterns’ environmental and social impact. Ethical consumption movements advocate for mindful spending and sustainable lifestyles that consider the broader consequences of consumer choices.
• Ethics in Financial Services: The financial industry operates within a complex ethical landscape, with issues like transparency, conflicts of interest, and fair treatment of clients coming under scrutiny. Ethical codes of conduct and regulations aim to promote integrity and trust in financial services, ensuring that financial professionals prioritize the interests of their clients.
• Debt and Financial Vulnerability: Ethical considerations arise in lending practices, particularly regarding the responsible provision of credit and the treatment of borrowers, especially those in vulnerable financial situations. Predatory lending practices and exploitative debt arrangements raise ethical concerns about the consequences of financial transactions on individuals’ well-being.
• Corruption and Financial Crime: Money laundering, bribery, and other forms of financial crime undermine the integrity of financial systems and pose ethical challenges to businesses, governments, and individuals. Ethical frameworks and legal regulations aim to combat financial corruption and promote accountability and transparency in financial transactions.
• Psychological Impact of Money: Money’s influence on individuals’ attitudes, behaviors, and relationships raises ethical questions about the psychological effects of wealth and materialism. The pursuit of wealth can lead to ethical dilemmas related to greed, envy, and the prioritization of financial gain over other values.
• Cryptocurrency and Ethical Considerations: Emerging digital currencies, such as cryptocurrencies, introduce new ethical considerations related to privacy, security, and the potential for illegal activities like money laundering and fraud. Ethical discussions surrounding cryptocurrencies also touch on financial inclusivity, decentralization, and the democratization of finance.

Financial Education

Financial education is essential to enable people to make informed decisions concerning their money, investments, and overall economic well-being. It covers many topics, from basic budgeting and savings to more complex concepts like investing, debt relief, and retirement planning. The need for financial literacy is huge in today’s complex financial world, where individuals are more accountable for their financial future.

• Foundational Knowledge: Basic financial concepts like income, expenses, budgeting, and savings are the first things students learn about when they start their financial education. Comprehending these underlying concepts establishes the foundation for prudent financial judgment and accountable handling of finances.
• Budgeting and Saving: Effective budgeting and saving are essential for financial education. Individuals learn how to create and stick to a budget, allocate funds for essential expenses, savings, and discretionary spending, and build an emergency fund to weather unforeseen financial challenges.
• Debt Management: Financial education teaches individuals about managing debt responsibly, including understanding different types of debt, interest rates, and repayment strategies. It emphasizes the importance of avoiding excessive debt and using credit wisely to maintain financial health.
• Investing and Wealth Accumulation: Investing is a key aspect of financial education, enabling individuals to grow their wealth over the long term. Topics covered may include understanding investment options (stocks, bonds, mutual funds, etc.), risk tolerance, asset allocation, and strategies for assembling a diversified investment portfolio.
• Retirement Planning: Financial education helps individuals plan for their future financial security, including retirement. It covers retirement savings vehicles (e.g., employer-sponsored retirement plans, IRAs), estimating retirement expenses, and developing a strategy to achieve retirement goals.
• Risk Management and Insurance: Understanding risk management and insurance is integral to financial education. Individuals learn about different types of insurance (e.g., health, life, property) and how insurance can mitigate financial risks and protect against unexpected events.
• Financial Decision-making: Financial education supplies individuals with the knowledge and skills to make instructed financial decisions based on their goals, values, and circumstances. It encourages critical thinking and evaluating financial products and services, empowering individuals to navigate the financial marketplace effectively.
• Economic Empowerment: Financial education is a tool for economic empowerment, particularly for marginalized communities and underserved populations. Promoting financial literacy and capability helps individuals build financial resilience, reduce vulnerability to financial exploitation, and achieve greater economic independence.
• Lifelong Learning: Financial education is a lifelong journey with changing financial circumstances and economic conditions. It emphasizes the importance of ongoing learning, staying informed about financial trends and developments, and adapting financial strategies as needed throughout life.
• Social and Policy Implications: Financial education has broader social and policy implications, influencing financial inclusion, economic mobility, and societal well-being. Policies that promote financial education in schools, workplaces, and communities can contribute to building a financially literate society and reducing financial disparities.

Money in the Digital Age

• Digital Payments and Transactions: The addition of digital payment methods, including mobile wallets, online banking, and peer-to-peer payment platforms, has reshaped the conduct of transactions. Digital payments offer convenience, speed, and accessibility, allowing individuals to transfer funds, make purchases, and manage finances seamlessly across various digital channels.
• Cryptocurrencies and Blockchain Technology: Cryptocurrencies, such as Bitcoin and Ethereum, represent a decentralized digital currency powered by blockchain technology. Blockchain technology enables secure, transparent, and tamper-proof transactions without intermediaries like banks or financial institutions.
• Financial Inclusion and Access: The digitalization of money can promote financial inclusion by delivering access to financial services for underserved populations. Digital payment platforms and mobile banking services empower individuals in small areas or underserved communities to participate in the formal financial system.
• Challenges and Risks: Despite the benefits, the digitalization of money presents challenges and risks, including cybersecurity threats, data privacy concerns, and regulatory challenges. Fraud, hacking, and data breaches highlight the importance of robust cybersecurity measures and regulatory frameworks to protect consumers and maintain trust in digital financial systems.
• Central Bank Digital Currencies (CBDCs): Central banks are exploring the vision of central bank digital currencies (CBDCs) as a digital alternative to traditional fiat currencies. CBDCs combine the advantages of digital currencies with the stability and regulatory oversight provided by central banks, potentially reshaping the future of money and monetary policy.
• Smart Contracts and Decentralized Finance (DeFi): Smart contracts, facilitated by blockchain technology, automate and enforce the words of contracts without intermediaries. Decentralized finance (DeFi) leverages blockchain and innovative contract technology to create decentralized financial services outside traditional banking systems, including lending, borrowing, and trading.
• Cross-Border Transactions and Remittances: Digital currency and blockchain technologies promise to stream international transfers and reduce expenses and inadequacies linked to conventional remittance systems. Cryptocurrencies and stablecoins offer an alternative means of transferring value globally, bypassing traditional banking channels and intermediaries.
• Regulatory Landscape and Policy Considerations: Governments and officials face regulatory hurdles due to the rapid evolution of digital currency. Regulatory frameworks must actively update to consider the changing landscape of digital finance to preserve consumer protection, financial stability, and compliance with know-your-customer (KYC) and anti-money laundering (AML) regulations.

Money is a cornerstone of modern society, serving as a medium of exchange, store of value, and facilitator of economic activities. Its significance extends beyond financial transactions, impacting individuals’ access to basic needs, economic opportunities, and overall well-being. Understanding the multifaceted role of money is crucial for promoting financial literacy, responsible money management, and equitable access to financial resources in today’s complex socioeconomic landscape.

*Please provide your correct email id. Login details for this Free course will be emailed to you

By signing up, you agree to our Terms of Use and Privacy Policy .

Valuation, Hadoop, Excel, Web Development & many more.

Forgot Password?

This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy

Explore 1000+ varieties of Mock tests View more

Submit Next Question

🚀 Limited Time Offer! - 🎁 ENROLL NOW

• Skip to main content
• Skip to secondary menu
• Skip to primary sidebar
• Skip to footer

A Plus Topper

Improve your Grades

Essay on Money | Money Essay for Students and Children in English

February 13, 2024 by Prasanna

Essay on Money: The concept of money was invented somewhere in 5000 B.C by a few traders in Western Europe. Ever since the invention, different countries have adopted it and started printing their own money with specific values, which was usually backed by gold. But before money was invented, trading used to happen with a system called a barter system, where you could buy one product or service with an exchange of another product. This is basically a brief history of money.

For centuries, money has been, gradually, incorporated into every corner of our lives. Not to sound cliché, but the entire world runs on one simple thing called money. Thanks to those traders hundreds of years back, our lives now entirely revolve around the man-made concept of money.

You can also find more  Essay Writing  articles on events, persons, sports, technology and many more.

Long and Short Essay on Money in English for Children & Students

In this article, we provide a 600-word long essay on money for school children for projects and assignments. We also provide a 200-word short essay on money for school and college assignments and project work.

Long Essay on Money

A very informative 400 to 600-word long essay on money for school and college projects and assignments can be found below.

While not everything is about money, we will have to come at a point of realization where we simply cannot live without money. It’s a hard truth. But isn’t the world being too negative about money? No essay on money will make sense if it is just about history and facts. So let us see how money has impacted our lives. Just like every attribute in our society, money has two sides. The evil and the good.

What’s the Good Side of Money?

When we say our lives revolve around money and everyone is just chasing it, it is usually considered with a negative connotation. Not everything about money should be taken in a bad light. The whole concept of money and capitalism has given people livelihood, better standards of living and most importantly an equal platform for everyone to work hard and fulfill their dreams.

Trust and Convenience of Money

Money is one of the biggest and most valuable and trustworthy forms of trade in which businesses can thrive and consumers can be saved from fraud and cheating. One of the biggest plus points of money is the trust factor it carries with it. Imagine having to carry out the barter system even today, where, to get a kilo of rice, you need to give a kilo of wheat. Sounds funny, isn’t it?

Equality of Money

This is, surprisingly, one thing that can bring people from different walks of life to agree upon. Money can buy you a good standard of living, it can buy you respect and value in society. Every person, irrespective gender, race, ethnicity or creed will be provided with an equal level playing field to earn money and lead a better life

Motivation and Direction of Money

Imagine the world without money. We will eventually come to a point where we will be asking questions like “what’s the point of life”. Hope and goals are some of the important things that will keep a man going in life. Without any sense of achievement or motivation, there wouldn’t be any inventions or progress in the world. People work to get money and then people work harder to get more money. This cycle of life that keeps a man motivated and hopeful is one of the biggest advantages of the system of money

What is the Evil Side of Money?

Well, not everything is hunky-dory about our financial systems. It would only be fair to talk about the disadvantages of money also to have a well-informed essay on money.

Whether it is capitalism or socialism, democracy, or communism or where its India or China, our system of money in the world has many cracks and fault lines within it.

• Broken system: If the concept of money in its pure form was used properly, there would have been equality on all scales and levels in the world. But, the reality is far from our imagination. The hierarchical system, in both capitalism or socialism, has created an immense amount of inequality and large gaps in income. It is true that more than 90% of the world’s wealth is in the hands of 2% of the population. If this is not a sign of a broken system, then we don’t know what is
• Greed: We need to understand the difference between desire and greed. When the fine line between the two is made more visible, then maybe our world will start healing itself. We are not necessarily talking about individual greed for money, but we are talking about issues on a much larger scale. Businesses are solely running to make profits, the government is more concerned about saving the economy than their own people or the environment we live in. The greed for money is destroying our nature, creating an imbalance in the natural cycle of the world and led us into wars, famine, poverty and pandemics.

Short Essay on Money

A short essay on money with a word limit of 150 to 200 can be found below for school assignment and projects

We can’t deny the fact that we cannot live without money. Money is undoubtedly the more important thing to live a happy and content life. Sure, the money will help us buy our dream car or impress and give a dignified life for our parents, but we also need to remember that there is more to life than just earning money.

Money can make or break many things, but like any other thing in the world, money also needs to have limits and should be used judiciously. The gap between rich and poor is because of poorly planned financial systems and an immense amount of greed which is a pet of human tendency

On a big picture level, governments need to fix the broken financial systems and modify our capitalist and socialist mindsets to create for ourselves a better world and leave an even better society to our next generation.

10 Lines on Money Essay

• Money is the only trustworthy and convenient way of trade
• The money we use is guaranteed and backed by our government
• Money, collected in the form of tax, helps us create a better environment for us
• Earning money will give people hope and direction to lead a happy life
• Money doest just buy tangible things like car or house, money also helps you earn respect and dignity in the society
• Hard work, responsibility and dedication is what reflects in a person’s character if they have a good amount of money
• Money is the core factor in all type of economies like a capitalist, socialist and communist economies
• Money has provided equal opportunities for everyone in the world
• Wrong use of money and greed has led to certain world issues like terrorism, pandemics and famine
• The difference between the amount of money rich and poor has, reflects loopholes and problems in our system

FAQ’s on Essay on Money

Question 1. What if the concept of money was not there?

Answer: We would be back to our age-old barter system. Globalization and industrialization would never be possible and each country and each village in the country would be self-sufficient and isolated

Question 2. Is money good or bad?

Answer: This is one of the most daunting questions that economists, leaders and other experts are pondering upon for years. There is no simple answer, but the present system, if modified well, can make money the best thing in the world.

Question 3. Why can’t governments just print money?

Answer: Every money, even a Rs. 1 is backed by government securities, usually in gold or dollars. If we print more than the security we have, our fiscal deficit will increase, which means that the value of money will get reduced as it will be available everywhere to everyone. It is a simple supply and demand theory.

Question 4. What are the different types of money?

Answer: In terms of value and currencies, we have dollar, rupees, pounds, yuan and many more for each country. In terms of physical existence, we have digital money (like bitcoins) and hard paper-based cash. In terms of tangibility, we have hard cash, commodities, fiduciary, representative and fiat money.

• Picture Dictionary
• English Speech
• English Slogans
• English Letter Writing
• English Essay Writing
• English Textbook Answers
• Types of Certificates
• ICSE Solutions
• Selina ICSE Solutions
• ML Aggarwal Solutions
• HSSLive Plus One
• HSSLive Plus Two
• Kerala SSLC
• Distance Education

45,000+ students realised their study abroad dream with us. Take the first step today

Meet top uk universities from the comfort of your home, here’s your new year gift, one app for all your, study abroad needs, start your journey, track your progress, grow with the community and so much more.

Verification Code

An OTP has been sent to your registered mobile no. Please verify

Thanks for your comment !

Our team will review it before it's shown to our readers.

• School Education /

Essay On Money: 100, 250 Words Samples

• Updated on  
• Nov 9, 2023

Why do you think money is important? Can we live without money? Does money have its own value? What’s the difference between hard money and digital money? When we plan on buying something, we have to pay a certain amount. Let’s say you want to buy a wristwatch worth $50. How do you compare that commodity with money? Do they have equal value? Is there any authority that states the value of money ? These and several other questions about money can make one wonder why money is given so much importance. Let’s go in-depth with an essay on money and find answers to all these questions.

Table of Contents

• 1 What is Money?
• 2 Why is Money So Important?
• 3 Essay on Money in 100 Words
• 4 Essay on Money in 250 Words

Also Read: Essay on Chandrayaan – 3

What is Money?

According to Wikipedia and Oxford Dictionary, Money is simply a medium of exchange. Some even consider money as one of the most important resources , which is used to make transactions of goods, services, or repayment of debts within a specific country or socio-economic context.

Money can have various forms, coins and banknotes in physical form, and electronic balances in bank accounts in digital forms. Money serves as a unit of account, facilitating the measurement of value in terms of prices, and as a store of value, allowing individuals to save purchasing power for future use.

Learn Why Financial Literacy is Important for Students.

Why is Money So Important?

What makes money such an important resource is its acceptance across the globe in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. Here are several reasons stating the importance of money.

• Money serves as a convenient medium of exchange that facilitates the buying and selling of goods and services, making transactions more efficient than barter systems.
• It provides a standardized unit for measuring the value of goods, services, and assets, allowing for easier comparison and assessment of value across different items.
• Money enables individuals and businesses to store wealth and purchasing power over time, facilitating savings and investment for future needs and goals.
• A stable and reliable monetary system encourages investment, trade, and economic growth, fostering overall prosperity within an economy.
• By using money, individuals and businesses can avoid the high transaction costs associated with bartering and the inefficiencies of non-monetary exchange systems.
• The use of money encourages specialization in the production of goods and services, leading to increased productivity and efficiency within an economy.
• Money is essential for the functioning of financial markets, banking systems, and investment activities, which are crucial for the allocation of resources and capital within an economy.

Also Read: Essay on National Unity Day 

Essay on Money in 100 Words

El dinero or money is used as a medium of exchange, unit of account, and store of value. It facilitates trade, allowing for the smooth exchange of goods and services, while also enabling efficient allocation of resources and encouraging economic growth. As a unit of account, it provides a standardized measure of value, simplifying the comparison of different goods and assets. 

Moreover, money acts as a store of value, allowing individuals to save and plan for the future. Its role in reducing transaction costs, enabling specialization, and supporting complex financial activities highlights its significance in the functioning of contemporary economies.

Essay on Money in 250 Words

Modern economics is heavily dependent on money or we can say that money is the pillar of modern economies. As a medium of exchange, it simplifies trade by providing a universally accepted method of payment for goods and services, eliminating the inefficiencies and limitations of barter systems. Its characteristic fosters the development of complex market systems, encouraging specialization and the efficient allocation of resources.

Apart from being a medium of exchange, money functions as a unit of account, providing a standardized measure of value that enables individuals to compare prices and evaluate the worth of different goods and services. This uniformity in valuation streamlines commercial activities and allows for effective planning and decision-making in both personal and business contexts.

Money serves as a store of value, allowing individuals to save and accumulate wealth over time. This feature empowers people to prepare for future expenses, emergencies, or long-term goals, providing a sense of security and stability in an uncertain world.

In addition to its role in daily transactions , money fuels economic growth by facilitating investment, entrepreneurship, and innovation. Financial institutions utilize money as a tool to allocate capital efficiently, enabling the development of new businesses, industries, and technologies that contribute to overall economic prosperity.

Money plays multiple roles in our lives; it is a physical or digital representation of currency; it is a fundamental pillar of modern economies, underpinning the intricate web of commercial activities, financial systems, and societal well-being. Its importance lies not only in its tangible properties but also in the complex functions and structures it supports within the global economic framework.

Also Read: How to Prepare for UPSC in 6 Months?

Money is globally accepted as a medium of exchange in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. To buy goods or services, you are required to pay a certain amount, which is fulfilled by paying money. 

To write an essay on money, you need to highlight the key aspects of this essential resource. The multiple transactions in which money is used in our day-to-day lives make money an important part of our lives. Give examples of how money can change our lives and what would happen if we were out of money. Highlight the latest trends in the financial sector and what governments are doing to save our money from inflation. 

Here are the 5 strongest currencies in the world: Kuwait Dinar (KWD), Bahraini Dinar (BHD), Omani Rial (OMR), Jordanian Dinar (JOD), and Gibraltar Pound (GIP).

Related Articles

For more information on such interesting topics, visit our essay writing page and follow Leverage Edu .

Shiva Tyagi

With an experience of over a year, I've developed a passion for writing blogs on wide range of topics. I am mostly inspired from topics related to social and environmental fields, where you come up with a positive outcome.

Leave a Reply Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Contact no. *

Connect With Us

45,000+ students realised their study abroad dream with us. take the first step today..

Resend OTP in

Need help with?

Study abroad.

UK, Canada, US & More

IELTS, GRE, GMAT & More

Scholarship, Loans & Forex

Country Preference

New Zealand

Which English test are you planning to take?

Which academic test are you planning to take.

Not Sure yet

When are you planning to take the exam?

Already booked my exam slot

Within 2 Months

Want to learn about the test

Which Degree do you wish to pursue?

When do you want to start studying abroad.

January 2024

September 2024

What is your budget to study abroad?

How would you describe this article ?

Please rate this article

We would like to hear more.

Have something on your mind?

Make your study abroad dream a reality in January 2022 with

India's Biggest Virtual University Fair

Essex Direct Admission Day

Why attend .

Don't Miss Out

Essay on Money 200+ Words

Money, a concept deeply ingrained in our daily lives, plays a pivotal role in our society. It serves as a medium of exchange, a measure of value, and a store of wealth. In this essay, we will explore the significance of money, backed by statistics, examples, and expert opinions.

The History of Money

Money has a fascinating history that dates back thousands of years. According to renowned historian Niall Ferguson, the earliest forms of money were simple items like shells or grains used for trade. Over time, coins and paper currency were introduced, revolutionizing commerce.

Money as a Medium of Exchange

One of money’s primary functions is to facilitate trade. It allows us to exchange goods and services efficiently. Imagine a world without money, where we had to barter directly for everything we needed. Money simplifies transactions, making our lives easier.

Money as a Measure of Value

It serves as a universal measure of value. It allows us to compare the worth of different goods and services. For example, a loaf of bread costs a certain amount of money, and we can easily determine its value compared to other items like milk or eggs.

Money as a Store of Wealth

Saving money enables us to store wealth for the future. Financial expert Warren Buffett advises, “Do not save what is left after spending, but spend what is left after saving.” Money invested wisely can grow over time, providing security and opportunities.

Economic Growth and Prosperity

Economists like Milton Friedman have shown that a stable monetary system is crucial for economic growth. Money allows businesses to expand, creates job opportunities, and fosters innovation, contributing to overall prosperity.

Personal Finance Management

Money management skills are essential for individuals and families. According to financial planner Suze Orman, understanding budgeting, saving, and investing empowers us to achieve our financial goals and secure our future.

Money and Philanthropy

Money can also be a force for good. Many philanthropists, such as Bill and Melinda Gates, use their wealth to address global issues like poverty and disease. Their generosity demonstrates how money can positively impact the world.

The Role of Government

Governments manage the money supply and ensure economic stability. Economist John Maynard Keynes emphasized the importance of government intervention during economic crises to prevent financial collapses and unemployment.

Conclusion of Essay on Money

In conclusion, money is a powerful and essential aspect of our lives. Its historical significance, role as a medium of exchange, measure of value, and store of wealth make it a cornerstone of our modern society. Money contributes to economic growth, empowers personal financial success, and can even be a catalyst for positive change through philanthropy. As we navigate our financial journeys, let us remember the significance of money and its potential to shape our lives and the world around us. Money is a tool, and how we use it determines its impact on our lives and society as a whole.

Also Check: The Essay on Essay: All you need to know

• Share full article

From the Heart to Higher Education: The 2021 College Essays on Money

Each year, we ask high school seniors to send us college application essays that touch on money, work or social class. Here are five from this year’s incoming college freshmen.

Credit... Robert Neubecker

Supported by

By Ron Lieber

• June 18, 2021

When the most selective — or, even better, rejective — schools in the United States are accepting under 10 percent of the people pleading for a spot in the next freshman class, it eventually becomes impossible to know why any one person receives an offer, or why a student chooses a particular school.

So in this particularly unpredictable season — as we publish a selection of application essays about money, work or social class for the ninth time — we’ve made one small but permanent change: We (and they) are going to tell you where the writers come from, but not where they are headed.

Our overarching point in publishing their essays isn’t to crack the code on writing one’s way into Yale or Michigan, as if that were even possible. Instead, it’s to celebrate how meaningful it can be to talk openly about money and write about it in a way that makes a reader stop and wonder about someone else’s life and, just maybe, offers a momentary bit of enlightenment and delight.

One writer this year helps her mother find a new way of bringing joy into the world, while another discovers the cost of merely showing up if you’re a female employee. A young man reflects on his own thrift, while a young woman accepts a gift of ice cream and pays a price for it. Finally, caregiving becomes a source of pride for someone young enough to need supervision herself.

Each of the writers will make you smile, eventually. And this year in particular, we — and they — deserve to.

We are having trouble retrieving the article content.

Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and  log into  your Times account, or  subscribe  for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber?  Log in .

Want all of The Times?  Subscribe .

Advertisement

Essay Service Examples Economics Money

What Is Money? Essay

• Proper editing and formatting
• Free revision, title page, and bibliography
• Flexible prices and money-back guarantee

• It must be easily standardized, making it simple to ascertain its value;
• It must be widely accepted;
• It must be divisible, so that it is easy to ‘make change’;
• It must be easy to carry;
• It must not deteriorate quickly.

Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions.

Cite this paper

Related essay topics.

Get your paper done in as fast as 3 hours, 24/7.

Related articles

Most popular essays

It is true that the salary is always an important issue in choosing a job. While many people...

• American History
• Andrew Jackson

According to Kimberly Amadeo, “65 percent or around $580 billion U.S. bills in circulation are...

The word ‘money’ can be used in many different ways, but it has a very specific meaning to...

“The game is rigged to work for those who already have money and power.” The celebrity world is...

'Money cannot buy true happiness'. Some people may say that this adage is no longer relevant...

There are regular discussions about how money makes people happier, which is more of a...

• Career Choice

Money is undeniably vital in life. You can’t pay your bills and nourish your family on just love...

• American Government
• Minimum Wage

It's time we at long last take a gander at the cons of the conflict rather than the pros. Numerous...

Happiness is something essential in our everyday lives. It is a part of the building blocks of...

Join our 150k of happy users

• Get original paper written according to your instructions
• Save time for what matters most

Fair Use Policy

EduBirdie considers academic integrity to be the essential part of the learning process and does not support any violation of the academic standards. Should you have any questions regarding our Fair Use Policy or become aware of any violations, please do not hesitate to contact us via [email protected].

We are here 24/7 to write your paper in as fast as 3 hours.

Provide your email, and we'll send you this sample!

By providing your email, you agree to our Terms & Conditions and Privacy Policy .

Say goodbye to copy-pasting!

Get custom-crafted papers for you.

Enter your email, and we'll promptly send you the full essay. No need to copy piece by piece. It's in your inbox!

Essay on Money Is Everything

Students are often asked to write an essay on Money Is Everything in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Money Is Everything

What is money.

Money is something you use to buy goods and services. It is coins and paper notes that people work to earn and spend to get what they need or want.

The Power of Money

Money can seem like it controls everything. It helps us get food, a home, and clothes. It also lets us enjoy fun activities, like movies or sports.

Money and Happiness

Some people think money brings happiness because it makes life easier. But it’s important to know that love, friendship, and health also matter a lot.

Money and Education

Money pays for school and books, which is important. Education helps us learn new things and get better jobs in the future.

250 Words Essay on Money Is Everything

Introduction to money.

Money is often said to be very important in our lives. It is the thing we use to buy food, clothes, and a home. Without money, it is hard to live comfortably. Some people believe that money is everything. Let’s explore this idea.

Money for Basic Needs

Firstly, we need money for basic things like food, water, and a place to live. These are things everyone must have to survive. If we don’t have money, getting these basics can be very hard. That’s why many say that money is needed for a good life.

Secondly, money helps us get a good education. Schools cost money, and without it, learning can be difficult. Education is important because it gives us knowledge and helps us get better jobs in the future.

Money for Happiness?

Some people think that money can buy happiness. It is true that money can buy things that make us happy, like toys, games, and vacations. But money cannot buy love or friendship. These are feelings that are free and can make us very happy without spending any money.

Money and Power

Lastly, money can give people power. With lots of money, a person can make big decisions and have more control over their life. But, having too much focus on money can sometimes lead to being selfish or unfair to others.

500 Words Essay on Money Is Everything

Money is like a key that opens many doors. It is what people use to buy food, clothes, toys, and many other things we need or want. When we talk about money, we mean the coins and paper notes we save in piggy banks or bank accounts. Money helps us trade what we have for what we want.

Money and Basic Needs

Imagine wanting to eat your favorite snack. To get it, you need money to buy it from a store. This is true for all the basic things in life, like a place to live, food to eat, and clothes to wear. Without money, it would be very hard to live because we need these things every day. Money helps people get these basic needs, which is why some people believe that money is everything.

Money and Health

When you get sick, you go to a doctor, who helps you feel better. But going to the doctor costs money. Medicines that cure our sickness also cost money. If someone does not have money, it can be tough to get healthy. This is another reason why people think money is very important.

Some people say that money can buy happiness because it lets you do things that make you happy. For example, if you love playing video games, you need money to buy a game console. Or if you enjoy going on trips, you need money to travel. Money can help us have fun and enjoy life, which makes us happy.

Money and Helping Others

Money is not the only thing.

It is important to remember that money is not the only thing that matters. Love, friendship, and kindness do not need money. You cannot buy a true friend with money, and you cannot pay for someone to love you. These things are very important, too.

Money is a big part of our lives. It helps us buy what we need and what we want. It is important for living, learning, staying healthy, and having fun. Money can also help us help others. Even though it is very important, it is not the only thing that matters. Love and friendship are also parts of a happy life, and they do not come with a price tag.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

Happy studying!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Essay on Money: Meaning, Functions and Role

Read this essay to learn about the meaning, functions and role of money.

Meaning of Money:

Money has been defined differently by different economists. Some, like F.A. Walker, define it in terms of its functions, while others like G.D.H. Cole, J.M. Keynes, Seligman and D.H. Robertson lay stress on the ‘general acceptability’ aspect of money.

According to Prof. D.H. Robertson, “anything which is widely accepted in payment for goods or in discharge of other kinds of business obligation, is called money.” Seligman defines money as “one thing that possesses general acceptability.” Prof. Ely says: “Money is anything that passes freely from hand to hand as a medium of exchange and is generally received in final discharge of debts.”

Prof. A. Walker says “Money is that money does.” But these definitions are defective because they do not lay proper emphasis on all the essential functions of money. Prof. Crowther’s definition of money is considered better as it takes into account all the important functions of money. He defines money as “anything that is generally acceptable as a means of exchange (i.e., as a means of setting debts) and at the same lime, acts as a measure and a store of value.”

ADVERTISEMENTS:

It is a fact that although money was the first economic object to attract men’s thoughtful attention…there is at the present day not even an approximate agreement as to what ought to be designated by the world…the business world makes use of the term in several senses; while amongst economists there are almost as many different conceptions as there are writers on the subject.’

Functions of Money :

Money is a matter of functions four, a medium, a measure, a standard, a store.

Money in a modern economy performs important functions which have been classified by Kinley as follows:

(a) Primary functions also called fundamental and original functions like the medium of exchange and measure of value.

(b) Secondary functions like standard of deferred payments, store of value and transfer of value.

(c) Contingent functions like distribution of income, measurement and maximisation of utility etc.

Medium of exchange:

Money serves as a medium of exchange and facilitates the buying and selling of goods, thereby eliminating the need for double coincidence of wants as under barter. A man who wants to sell wheat in exchange for rice can sell it for money and purchase rice.

Measure of value:

Money has also removed the difficulty of barter system by serving as a common measure of value. The values of various commodities are expressed in terms of money. Money as a measure of value has made transactions simple and easy. It may be understood that this function of money follows from the first basic function (medium of exchange). It is because money is used as a medium to exchange goods, that each good gets a value in terms of money (called price). As such, money also serves as a unit of account. In India, the unit of account is the Rupee, in USA, the Dollar; in USSR, the Rouble and the Yen in Japan.

Store of Value:

Classical economists did not recognize the store of value function of money. Keynes laid stress on this function of money. People store money to provide again the rainy day and to meet unforeseen contingencies. According to Keynes, people also store money to take advantage of the changes in the rate of interest. Money as a store preserves value through time and space. Money as a store of value through time means the shifting of purchasing power from the present to the future and as such it serves as an important link between the present and the future.

Money in this case is stored as a form of ‘asset’. Money is an asset or a form of wealth because it is a claim. It is the most convenient way of laying claim to such goods and services as one wishes to buy. Thus, rather than keeping their wealth in the form of non-liquid assets like houses, shares, etc., people prefer to keep their wealth in the form of money.

Money is the most liquid of all assets i.e., money can be readily exchanged for goods and services without any difficulty and the price of money or its value is stable at least over a short period. In fact, all assets like bonds, saving accounts, treasury bills, government securities, inventories and real estate do serve as stores of value, but they differ in the degree of liquidity; money amongst these possesses highest degree of liquidity and that is why people prefer it most as a store of value.

However, we should not give it undue importance because the value of money does not remain stable through time. As prices rise, people try to get rid of money as its value falls. Moreover, in modern economies storing wealth in the form of money is unimportant as it is done in the form of interest-bearing securities.

Money as a store of value through space continues to be important; for instance, an Indian businessman who sells his business and property and goes to USA and settles down there is a case of exporting value through space. In ancient times, gold and silver coins were used as a store of value followed by currency notes. In advanced countries today money is stored in the form of bank deposits.

Standard of Deferred Payments:

Money has always been used as a standard of deferred payment. This function of money has attained more importance in modern times with the extension of trade based on credit. As a result of this function, it has become possible to express future payments in terms of money. A borrower who borrows a certain sum in the present undertakes to pay the same in future. Similarly, a person who purchases on credit agrees to pay in future when his bills become due. Money as a standard of deferred payments is performing useful function enabling the current and present transactions to be discharged in future.

Contingent Functions:

Besides, the primary and secondary functions of money, Prof. Kinley lays stress on the contingent functions of money. Money facilitates the distribution of national income among the various factors of production. Land, labour, capital and organization all co-operate in an act of production and the product is the result of their joint efforts, which belongs to all of them.

Money makes the distribution of joint production, amongst various factors easy and paves the way for economic progress. Further, a concept like utility is measured in terms of money. A consumer as well as a producer measures the utilities of different goods and factors of production with the help of money and try to get maximum satisfaction or maximum returns.

Again, credit is the basis of modern economic progress. Money constitutes the basis of credit. Banks create credit not out of thin air but with the help of money. Moreover, money gives liquidity to various forms of wealth. A person by keeping his wealth in the form of money renders it most liquid.

Role of Money:

Money plays a vital role in the determination of income and employment. The basic problems of macroeconomics are the determination of income, output, employment and the general price levels, including the determination of the long-run rate of growth of income. As far as the growth theory is concerned, the supply and demand for money have been largely ignored until recently, yet all but the very simplest short-run income and price level determination models have a money market included in them.

As such, money becomes an economic force in its own right, which under certain circumstances, powerfully affects economic activities. This is the main subject matter of monetary economics. Monetary theory is that branch of economics which aims at discovering and explaining how the use of money in its various forms affects production, consumption and distribution of goods. As a matter of fact, the advocates of monetary theory plead that a large number of factors affect the volume of production, consumption and distribution. To them, money is no more a veil, a medium to facilitate exchange of goods: but something more vital, more crucial and more important, which affects the general level of economic activity.

Monetary theorists hold that the use of money as a medium of exchange, as a store of value, as a measure of value, as a standard of deferred payments along with its contingent functions has the capacity of influencing the volume and direction of economic activity that would not occur in a barter economy. In a monetary economy, according to Keynes, “money plays a part of its own and affects motives and decisions and is, in short, one of the operative factors in the situation, so that the course of events cannot be predicted, either in the long period or in the short, without a knowledge of the behaviour of money between the first state and the last.” In such a world, money is not a neutral phenomenon rather a phenomenon governed by principles very different from those that hold sway over the process of production and exchange.

In modern income and employment analysis, these are two spheres of economic activity. There is, on the one hand, the real or goods sector, which has to do with forces of aggregate demand and supply and the conditions under which an equilibrium of output and employment is achieved. On the other hand, there is the monetary sphere in which the economic forces at work are those centering around the demand for money.

According to the modern view, the existence of a separate monetary sphere of activity is a fact of profound significance; what takes place in the monetary sphere may suddenly and dramatically influence the level of both output and employment. The method by which Keynes brings money into the picture is through the development of a theory of interest in which the demand for money is dominant. The rate of interest is the link between the real sphere and the monetary sphere. It is a factor around which the theory of investment is constructed and investment expenditure is one of the key determinants of income and employment.

Related Articles:

• Essay on Money: Meaning and Main Functions of Money
• Money: Meaning and Functions of Money – Discussed!
• Top 4 Functions of Money – Discussed!
• Top 2 Functions of Money | Economy

260 Money Topics to Write About & Essay Examples

Looking for a topic about money? Money won’t leave anyone indifferent! There are lots of money essay topics for students to explore.

🏆 Best Money Essay Examples & Ideas

👍 good money essay topics, 💡 easy money topics to write about, 📃 interesting topics about money, 📑 good research topics about money, 📌 most interesting money topics to write about, ❓ research questions about money.

You might want to focus on the issue of money management or elaborate on why money is so important nowadays. Other exciting topics for a money essay are the relation between money and love, the role of money in education, etc. Below you’ll find a list of money topics to write about! These ideas can also be used for discussions and presentations. Money essay examples are a nice bonus to inspire you even more!

• Can Money Buy You Happiness? First of all, given that happiness is related to the satisfaction of personal needs, there is also a need to consider the essential need of human life such as housing, medicine, and food.
• Money as a Form of Motivation in the Work Place This then shows that money can and is used as a motivational factor in the work place so that employees can strive to give their best and their all at the end of the day.
• Connection Between Money and Happiness Critical analysis of money-happiness relationship shows that socioeconomic factors determine the happiness of an individual; therefore, it is quite unsatisfactory to attribute money as the only factor and determinant of happiness.
• Money, Happiness and Relationship Between Them The research conducted in the different countries during which people were asked how satisfied they were with their lives clearly indicated the existence of a non-linear relationship between the amount of money and the size […]
• I Don’t Believe Money Can Buy Happiness This shows that as much as money is essential in acquisition and satisfaction of our needs, it does not guarantee our happiness by its own and other aspects of life have to be incorporated to […]
• Anti-Money Laundering and Hawala System in Dubai To prevent money launders and agents, most countries enacted the anti-money laundering acts with the goal of tracking and prosecuting offenders.
• Money and Banking: General Information The essay gives the definition of money and gives a brief description of the functions of money. As a store of value, money can be saved reliably and then retrieved in the future.
• Money: Good or Evil? Comparing & Contrasting While there are those amongst us who subscribe to the school of though that “money is the source of all evil”, others are of the opinion that money can buy you anything, literary.
• Why Money Is Important: Benefits & Downsides The notion originated from the Bible because the person who made Jesus suffer on the cross was enticed by the love of money to forsake Jesus.
• Discussion: Can Money Buy Happiness? Reason Two: Second, people are psychologically predisposed to wanting more than they have, so the richer people are, the less feasible it is to satisfy their demands.
• Money and Modern Life The rich and the powerful are at the top while the poor and helpless are at the bottom, the rest lie in-between.
• Time Value of Money: Importance of Calculating Due to fluctuations in economies, all organizations need to take into consideration concepts of the time value of money in any investment venture.
• The Global Media Is All About Money and Profit Making It is noteworthy that the advertisement are presented through the media, which confirms the assertion that global media is all about money and profit making. The media firms control the information passed to the public […]
• Prices Rise When the Government Prints too Much Money Makinen notes that an increase in the supply of money in an economy relative to the output in the economy could lead to inflationary pressure on prices of goods and services in the economy.
• Does Money Buy Happiness? Billions of people in all parts of the world sacrifice their ambitions and subconscious tensions on the altar of profitability and higher incomes. Yet, the opportunity costs of pursuing more money can be extremely high.
• Giving Money to the Homeless: Is It Important? The question of whether a person should give money to a homeless person or not is a complicated one and cannot have the right answer.
• Success and Money Correlation The development of the information technologies and the ongoing progress led to the reconsideration of the values and beliefs. It is significant to understand that there is no right or wrong answer for the question […]
• Two Attitudes Towards Money The over-dependence on money to satisfy one’s emotional needs is a negative perspective of money. The positive attitude of money is rarely practiced by people.
• Money and Its Value Throughout the World History What is important is the value that people place on whatever unit they refer to as amoney.’ Money acts as a medium of exchange and an element of measurement of the value of goods and […]
• Efforts to Raise Money for Charity However, the point is that charity is supposed to be for a simple act of giving and not expecting any returns from it.
• Money, Success, and Relation Between Them In particular, the modern generation attaches so much importance to money in the sense that success and money are presumed to be one and the same thing.
• Anti-Money Laundering in Al Ansari Exchange Case Study Details Company name: Al Ansari Exchange Headquarters: Dubai, United Arab Emirates Sector: Financial Services Number of employees: 2500 Annual gross revenue: UAED 440.
• Money and Happiness in Poor and Wealthy Societies Comprehending the motivations for pursuing money and happiness is the key to understanding this correlation. The Easterlin paradox summed this view by showing that income had a direct correlation with happiness.
• Time Value of Money Compounding was done on the amount that I had lent out using the market rate over the duration of time the person held my money.
• Are Workers Motivated Mainly by Money? Related to the concept of work and why people work is the original concept developed by Karl Marx in the so-called conflict theory.
• Strategies to Save and Protect Money Thus, the main points of expenditure will be clearly marked, which will help to exclude the purchase of unnecessary goods and services.
• Why People Should Donate Time, Money, Energy to a Particular Organization, Charity, or Cause Its vision is to have a world that is free from Alzheimer’s disease.”The Alzheimer’s Association is the leading, global voluntary health organization in Alzheimer’s care and support, and the largest private, nonprofit funder of Alzheimer’s […]
• Money: Evolution, Functions, and Characteristics It acts as medium of exchange where it is accepted by both buyers and sellers; the buyer gives money to the seller in exchange of commodities.
• The Use of Money in Business Practices Money is seen as the cause of problems and especially in the minds of emerging market respondents. Through this they can pick up groceries for the old in their neighborhood and make money from this.
• Relation Between Money and Football In the English league, clubs have been spending millions to sign up a player in the hope that the player will turn the fortunes of the company for the good.
• The Airtel Money Service: Indian and African Paths When comparing the Indian and African paths in introducing the service, the first difference that arises is the main user of the service as in the case of India, it was the lower middle class.
• The Ascent of Money: A Financial History of the World The succinctness of this book lies in the critical analysis and emphasis of the financial history of money in spite of the fact it has impeded some important functions of the global economy.
• Money or Family Values First? Which Way to Go As such, family values becomes the epicenter of shaping individual behavior and actions towards the attainment of a certain good, while money assumes the position of facilitating the attainment of a certain good such as […]
• Should America Keep Paper Money It is possible to begin the discussion of the need for keeping paper currency from referring to the rights of any people.
• Where Does the Money Go? by Bittle & Johnson Therefore, the authors explain key issues of the national debt in a relatively simple language and provide their opinion on how the country got into that situation and what could be done about it. In […]
• Money Management in the Organization There is a much debate on the issue and several people an financial experts do analyze the historical perspectives of the Active vs Passive money management.
• Paper Money and Its Role Throughout History The adoption of the paper money was considered to be beneficial for both the wealth of the country and the individual businessmen.
• Exploring the Relationship Between Education and Money A person cannot be able to change his/her ascribed status in the society, but only through education a person is able to change his/her Socio-economic status and to some extent that of his/her family once […]
• The Relationship Between Money Supply and Inflation It is evidenced that changing the money supply through the central banks leads to a control of the inflationary situations in the same economy.
• Drugs: The Love of Money Is the Root of All Evils The political issues concerning the use of drugs consist of, but not limited to, the substances that are defined as drugs, the means of supplying and controlling their use, and how the society relates with […]
• Money From the Christian Perspective Work in Christian missions is a business and since it affects the relationship between the missionary and the people he is trying to reach, missionary funding is essential.
• Money, Happiness and Satisfaction With Life Nonetheless, the previously mentioned examples should be used to remind us that money alone is not a guarantee of happiness, satisfaction with life, and good health.
• Anti Money Laundering and Financial Crime There are a number of requirements by the government on the AML procedures to be developed and adopted by the firms in the financial service in industry in an attempt to fight the illegal practice.
• Two Attitudes Toward Money Two attitudes toward money involve negative perception of money as universal evil and positive perception of money as source of good life and prosperity.
• “From Empire to Chimerica” in “The Ascent of Money” In the chapter “From Empire to Chimerica,” Niall Ferguson traces back the history of the Western financial rise and suggests that nowadays it is being challenged by the developing Eastern world. The hegemonic position of […]
• Electronic Money: Challenges and Solutions First of all, it should be pointed out that money is any type of phenomenon which is conventionally accepted as a universal carrier of value, or “any generally accepted means of payment which is allowed […]
• “College Is a Waste of Time and Money” by Bird Bird’s use of logical fallacies, like if students do not want to go to college, they should not do it until the reasons of their unwillingness are identified, proves that it is wrong to believe […]
• Money Saving Methods for College Students A budget is one of the methods that a college student can use to save money. In the budget, one should indicate how much to save and the means of saving the money.
• Mobile Money Transfer Service The Vodafone team managed to keep mobile banking service simple to its users. Soon mobile banking became a form of viral marketing and drove the growth of the company and its services.
• Opinion on the Importance of Money In the absence of money, individuals and organizations would be forced to conduct transactions through barter trade which is a relatively challenging system due to existence of double coincidence of wants.
• Time Value of Money From an Islamic Perspective Islamic scholars say that the time value of money and the interest rates imposed on money lent are the reasons why the poor keep on getting poor and the rich richer.
• Money Laundering Scene in Police Drama “Ozark” In one of the first season’s episodes, Marty, the main character, illustrates the process of money laundering crime. In the scene, one can see that Marty is fully sane and is committing a crime voluntarily.
• Business Case Scenario: Missing Money in a Company A possible scenario explaining how money is missing is through the payroll department my first argument seeks to prove the payroll department as the loophole of the company’s misfortunes.
• Sports Stadiums’ Funding by Public Money The issue is controversial from an ethical point of view since not all citizens whose taxes can be spent on the construction of the stadium are interested in or fond of sports.
• Money Laundering: The Kazakhgate Case He was accused of breaking the Foreign Corrupt Practices Act of 1974 and money laundering by the U.S.attorney’s office for the Southern District of New York.
• The Ways Terrorists Raise and Move Money Moreover, the government has put into action the freezing orders and blocking of united states individuals who are presumed to have a hand in terrorist activities.
• “Money as a Weapon” System and Fiscal Triad Furthermore, the fiscal triad encompasses the procurement of products and services and the disbursement and accounting of public funding. Fiscal legislation and contracts are two key components of the “money as a weapon” system.
• The Fiscal Triad and Money as a Weapon System The reliance on the unit commanders sparked the development of the complementary strategy, “Money as a Weapon System,” which became a focal point of the Iraq and Afghanistan campaigns.
• Saving Money Using Electric or Gas Vehicles The central hypothesis of the study is that the electric car will save more money than gas ones. The main expected outcome that the study is counting on is a confirmation of the presented hypothesis […]
• Traditional vs. Modern Forms of Money The most significant argument for the continuing existence of traditional forms of money is the impossibility of converting all financial resources into a digital form.
• Money Laundering Through Cryptocurrencies This study will try to critique the approaches used by countries to address the aspect of money laundering activities and the risks posed by digital currencies.
• Time Value of Money: What You Should Know The time value of money is a paramount financial concept, according to which a certain amount is now worth more than the same amount in the future.
• The Lebanese-Canadian Bank’s Money Laundering The bank was later banned from using the dollar by the American treasury; this resulted in the collapse and eventual sale of the bank.L.C.B.had to pay a settlement fine of one hundred and two million […]
• Play Money Paper: A Report Betas of the Companies in the Portfolio It is noteworthy that in the given portfolio, the beta indices of the companies involved vary considerably.
• Integration of Business Ethics in Preventing Money Laundering Schemes The shipping information within the document seems inaccurate with the intention to launder money from the buyer. The contribution of ocean carrier in the transaction process is doubtful to a given extent.
• Trade-Based Money Laundering The purpose of this paper is to research the subject of trade-based money laundering, its impact on global scene and export controls, identify types of trade finance techniques used to launder illegal money, and provide […]
• Impact of Natural Disasters on Money Markets and Investment Infusion of funds from the central bank during natural disasters results in higher process of exports as a direct result of an increase in the value of the local currency.
• The Perception of Money, Wealth, and Power: Early Renaissance vs. Nowadays In the Renaissance period, power was a questionable pursuit and could be viewed as less stable due to more frequent upheavals.
• Financial Institutions and Money Money is a store of value because it can be saved now and used to purchase se goods and services in the future.
• Researching of the Time Value of Money After receiving the loan, one of the monetary policies that would help PIIGS to stabilize is the deflation of their currency, in this case, the Euro.
• Anti-Money Laundering: Financial Action Task Force Meanwhile, given the limited access for physical assessment of state jurisdictions, it is likely that current provisions of FATF are yet to be revised in spite of pandemic travel and assessment restrictions.
• Anti-Money Laundering in the UK Jurisdiction The regime adopted in the UK is based on the provisions of “the Terrorism Act of 2000, the Proceeds of Crime Act of 2002, as well as the Money Laundering, Terrorist Financing, and Transfer of […]
• Trade-Based Money Laundering and Its Attractiveness The proliferation of the trade-based money laundering is directly related to the growing complexity of international trade systems, where new risks and vulnerabilities emerge and are seen as favorable among terrorist organizations seeking for the […]
• Money Laundering and Sanctions Regulatory Frameworks Under the provisions of OFAC, the company has violated the cybersecurity rules that might indirectly bring a significant threat to the national security or the stability of the United States economy by engaging in online […]
• Type Borrowing Money: Margin Lending In the defense of the storm financial planning firm, BOQ submitted to the authorities that in view of banking regulatory policies, storm had not contravened any of the policies and this is the reason why […]
• Lessons on Financial Planning Using Money Tree Software Financial planning remains a fundamental function among the investors in coming up with a method of using the finances presently and in the future.
• The Supply of Money in the Capitalist Economy In the capitalist economy that the world is currently based on, the supply of money plays a significant role in not only affecting salaries and prices but also the growth of the economy.
• Time Value of Money Defined and Calculations Simply put, the same value of money today is worth the same value in future. The time value of money can therefore be defined as the calculated value of the money taking into consideration various […]
• Money Tree Software: Financial Planning This return is important because: It represents the reward the business stakeholders and owner of the business get in staking their money on the business currently and in the future It rewards the business creditors […]
• Money Management: Investment on Exchange-Traded Funds The essay will discuss the possibility of investing in a number of selected ETFs in connection to an investment objective of an individual.
• What Is Money Laundering and Is It Possible to Fight It Certainly and more often money involved in laundering is obtained from illegal activities and the main objective of laundering is to ‘clean’ the dirty money and give it a legitimate appearance in terms of source.
• Time Value of Money: Choosing Bank for Deposit The value of the money is determined by the rate of return that the bank will offer. The future value of the two banks is $20,000 and $22,000 for bank A and bank B respectively.
• How Money Market Mutual Funds Contributed to the 2008 Financial Crisis While how the prices of shares fell below the set $1 per share was a complex process, it became one of the greatest systemic risks posed by the MMMF to the investors and the economy […]
• Rational Decision Making: Money on Your Mind The mind is responsible for making financial decision and it is triggered by the messages we receive on the day to day activities. Lennick and Jordan explain that, we have two systems in the brain; […]
• A Usability Test Conducted on GE Money.com.au It is common knowledge that the easier it is to access services and products on a given website the more likely users will be encouraged to come back.
• “Most Important Thing Is Money Ltd”: Vaccination Development Thus, necessary powers have been vested with the Secretary of State for Health in England, through the recommendations of the Joint Committee on Vaccinations and Immunisation to enforce such preventive steps, through necessary programs that […]
• Money Investments in the Companies and Bonds The stock volume is on the low level now, about 30, but it is connected with the crisis in the world and the additional investment may support the company and increase it. In general the […]
• How the Virus Transformed Money Spending in the US In the article featured in the New York Times, Leatherby and Geller state that the rate at which people spend their money has rapidly decreased due to the emergence of the virus in the United […]
• The Role of Money and Class Division in Society The image of modern American society tries in vain to convey the prevalence of personality over social division. Americans’ perception of financial status has been shaped for years by creating the notion of the “American […]
• Money and American Classes in 1870-1920 Wherein, the time of the stock market emergence was the time of the ongoing “carnival,” where the mystical power of money transferred to miraculous products and medicines and compelling advertisements.
• The Ascent of Money – Safe as Houses Looking from a broad historical perspective, Niall Ferguson devotes the chapter “Save as Houses” to the observation of the real estate concept transformation, describes the place of the real estate market in the economic systems […]
• The Ascent of Money – Blowing Bubbles The price for a share tells how much people rely on the cost of the company in the future. The life of a stock market represents the reflection of human moods on the price of […]
• Canada’s Role in the History of Money: The Relationship Between Ownership and Control Individuals with the predominant shares gain the directorship of the wealth production channels and as such gain control of the diversified owners.
• Why Non-Monetary Incentives Are More Significant Than Money It is important to recognize that both monetary and non-monetary incentives, otherwise known as total rewards, are offered to employees in diverse ways for purposes of attracting and motivating them to the ideals of the […]
• Money Role in Macro Economy The dollar is till now the most accepted currency in the world and this dollar fluctuation that has been caused by the worst recession in American history since the time of the Great Depression is […]
• Change in the Value of Money According to Keynes To explain the effect of inflation on investors, Keynes delves into the history of inflation through the nineteenth century and tries to explain the complacency of investors at the beginning of the First World War […]
• Organizational Communication & the “Money” Aspect While the use of this information is critical for both ensuring survival of the organization and being a frontrunner in its strategies for the future, there are large boulders in use of this information effectively, […]
• Money Makes You Happy: Philosophical Reasoning It is possible to give the right to the ones who think that money can buy happiness. This conclusion is not accepted by psychologists who think that wealth brings the happiness only in the moment […]
• Spare Change: Giving Money to the “Undeserving Poor” To address the central theme of the article, one need to delve deeper into the psyche of giving alms and money to the poor people we meet on the street.
• Money Laundering and Terrorist Finance However, the balance money after the sham gambling is transferred to another ordinary bank account, thereby creating a legal status for the laundered money as if it has come from gambling and will be employed […]
• City Planning. Too Much Money: Why Savings Are Bad The scenario is that the expected growth in economies where the rate of savings is high has not shown a corresponding increase in growth rate also.
• Debates in Endogenous Money: Basil Moore The value of the currency was determined by the value of the precious metal used to mint the currency. From the time Federal Reserve took control of money and credit, economic consistency is attained by […]
• Money and Banking. Financial Markets The essay will examine the essence and the importance of the above-mentioned financial phenomena and see how their interrelation, especially in the negative context, can influence the state of things in society.
• Money and Justice: High-Profile Cases It is estimated that thousands of persons bracketed in the ‘poor’ sector of society go to jail annually in the United States without having spoken to a lawyer.
• Accounting for Public Money After Railway Privatization There were very many problems prior to the railway privatization in 1990.one of the problems that led to the privatization of the railway line in the UK was the misappropriation of taxpayers’ money.
• Time Value of Money and Its Financial Applications The time value of money refers to the idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity.
• Money Laundering in the USA and Australia The International Money Fund has established that the aggregate size of money laundering in the World is approximately four percent of the world’s gross domestic product.
• Locke’s Second Treatise of Government and Voltaire’s Candide’s Value on Money Both written at a time when philosophers had started questioning the relevance of capitalism and the concept of wealth creation, it is evident that the two authors were keen on explaining the power of money […]
• The Concept of Money Laundering The first issue I have learned is that the main problem lies in the presence of Big Data that includes trillions of transactions of various financial organizations and systems.
• Time Value of Money – Preparing for Home Ownership The purchase price of the house is determined by using the following formula in Excel. 66 The down payment is 20% of the future value of the house, i.e, $40,278.13.
• Martin Van Buren: Money and Indian Relocation One of the reasons for such collaboration and understanding is the focus on the values we have. I believe this path will bring us to the land we all would like to live in.
• The General Theory of Employment, Interest and Money Money is a determinant of the propensity to consume; hence, the more money one makes, the more that he or she consumes and the converse is the case.
• The Practice of Saving Money Knowledge of the language is also a very crucial component of EAP as it aids the learner in understanding questions and responding to them in their examinations.another differentiating factor between the two varieties of English […]
• How Money Markets Operate? Furthermore, only free markets have shown the resilience that is necessary to accompany the fluctuations in demand and supply of the money markets.
• History of Money in Spain The production of coins melted from gold also ceased in the year 1904, with the production of that melted from silver ceasing in the year 1910.
• Management: “Marketplace Money” and “Undercover Boss” In this case, the accents are made on the support of the healthy workforce in order to guarantee the better employees’ performance and on the idea of rewards as the important aspects to stimulate the […]
• Money Compensation for Student-Athletes Besides, sports are highly lucrative for colleges, and students whose labor brings the revenues should share the part of them not to lose the interest in such activities.
• Chapters 1-3 of “Money Mechanics” by David Ashby The retained amount of money in the commercial bank is the primary reserve. The banks can decide to reduce their working reserve, and the money obtained is transferred to the excess reserve fund in accounts […]
• Banking in David Ashby’s “Money Mechanics” Changes in prices may not have a direct effect on the gross domestic product and the planned expenditures because this is determined by the money that is in supply. This causes the GDP and prices […]
• The UAE Against Money Laundering and Terrorism Financing This valuation of the anti-money laundering and combating the financing of terrorism government of the United Arab Emirates is founded on the forty endorsements and the nine special commendations on extremist supporting of the monetary […]
• UAE Anti-Money Laundering Laws and Their Benefits The legal maintenance of counteraction to the legalization of criminal incomes is carried out by means of a system of laws and regulations, controlling financial, bank, and customs relations and establishing the order of licensing […]
• Money, Their Features, Functions and Importance The first hindrance is the inability of the household to monitor the activities of firms. In this case, it is used to state the value of debt.
• Money Market Development Factors The money market is one of the fundamental elements in the functioning of any state. Under these conditions, the gradual rise of technologies and their implementation in the sphere of financial operations alter the money […]
• “God’ Money is Now My Money” by Stanley Seat It could be said that different priorities and the lack of time for supervision of the employees are the critical reasons for the violation of rules and high frequency of fraud in the religious institutions […]
• International Money Laundering Thus, money laundering has a profound impact on the state of the global economy, as well as on the economy of the U.S.
• Cybercrime and Digital Money Laundering The result of the investigation was the indictment of Western Express and a number of the company’s clients for several charges including stolen credit card data trafficking and money laundering.
• Hawala Remittance System: Anti-Money Laundering Compliance The existence and operation of money remittance systems is one of the primary features of developing economic relation at all scales from local to the global ones.
• Time Value of Money in Investment Planning The author of the post makes a good point that an amount of money is worth more the sooner it is received.
• David Leonhardt: May Be Money Does Buy Happiness After All The case study of Japanese citizens that support Easterlin paradox do not factor in the confounding psychological effects of the Second World War on the entire population and the country.
• Illegal Drug Use, Prostitution and Money Laundering Upon discussing the impact of money laundering, illegal drugs, and prostitution, the paper proposes the issuing of a court order restraining the use of wealth acquired from victimless crimes as one of the approaches to […]
• Getting Beyond: Show Me the Money Nevertheless, underpayment and overpayment are common, leading to dissatisfaction. Notably, compensation is part culture, but analytics will gain traction in the big data era, as start-ups leverage such advantages from experts to manage a sales […]
• Space Programs: Progress or Waste of Money? According to Ehrenfreund, the ingenuity to develop technologies and work in space is part of the progress that comes from space programs. Space programs have led to the development of technologies that improve air transport.
• “The Money Machine: How the City Works” by Coggan The media plays a chief role in educating the public concerning the various financial matters that affect the undertakings of the City.
• Money Evolution in Ancient Times and Nowadays In the means to defining what money is, most of the scholars from the psychological and physiological field have come up with the theoretical aspects of money and the ways it influences the economic growth […]
• Fraud and Crime Theory in the “Black Money” Movie The movie shows the irregularities involved in the acquisition of arms for the Saudi government. The movie is a perfect display of the international crimes and financial fraud that has been on the rise in […]
• Mercantilism, Stamped Money, and Under-Consumption It is paramount to note that he criticizes ideas of Ricardo quite frequently, and he believed that he did not consider the ideas that were suggested by other prominent economists.
• Money Evolution in the 21st Century and Before The history of the world cannot be described effectively without identifying the function of money. Money has been used to measure the value of resources and financial markets.
• Monetary Policy in “The Ascent of Money” by Ferguson The rise of Babylon is closely linked to the evolution of the concept of debt and credit; without bond markets and banks, the brilliance of the Italians would not have materialized; the foundation of the […]
• Money History, Ethical and Social Standarts These moral preconditions of the emergence of money, the social conventions that regulate and control it, and the evolvement of its status in the present-day world can be regarded as the most significant events in […]
• World Money History in the 20th Century and New Objects of Value The class materials examined the developments, hurdles, and systems that have emerged due to the changing roles of money in the global economy.
• Medieval England in “Treatise on the New Money” The availability of standard quality coins was crucial to the effective running of the government and the stability of the economy.
• Blowing Bubbles in Ferguson’s “The Ascent of Money” Moreover, the author shows the connection and similarities between the present collapse of a stock market and the Enron default along with a Mississippi Bubble of the eighteenth century that was created by John Law, […]
• Human Bondage in Ferguson’s “The Ascent of Money” One of the greatest revolutions in the ascent of money after the creation of credit banks, the center of the discussion in this chapter is on how issuing bonds can help governments to borrow money […]
• Money History, Bonds, Market Bubbles, and Risks The concept was so important to human progress that the evolution of the financial system needed to support social and economic development resulted in the establishment of the banking system known today.
• Park Avenue: Money, Power and the American Dream This is one of the drawbacks that should be taken into account by the viewers who want to get a better idea about the causes of the problems described in the movie.
• Deflation in the Quantity Theory of Money The present paper analyzes the recent revelations using the quantity theory of money and concludes that the United States Federal Reserve can reverse the anticipated deflation tide by increasing the amount of money circulating in […]
• Money, Its Purpose and Significance in History Money is the undisputed determinant of quality of life for inhabitants of the modern world. The concerns of money have become pertinent to people all over the world, including the ones who are living in […]
• “Who Stole the Money, and When?” by Greenberg The purpose of research developed in the chosen article is to identify possible personal and situational variables that may affect employee theft in a certain work setting and explain their relation to unethical behavior that […]
• Money History From the Middle Ages to Mercantilism Due to the writing, the idea of bond marketing evolved as a reaction of separate governments to the crisis of money flows.
• Money Development From 600 BC to Nowadays Medici family was a financial symbol in Europe huge in success and power in the 16th century. A system of money in deposits and floating exchange rates was introduced to end centuries-old links between money […]
• Dreams of Avarice in Ferguson’s “The Ascent of Money” The chapter “Dreams of Avarice” of the book “The Ascent of Money” explores different stages of development of money functioning in the world by relating them to corresponding historical events.
• Market Society in “What Money Can’t Buy” by Sandels Thus, the author states that the market economy is a positive creation of people while the use of market values in all aspects of people’s life is a negative and even destructive trend.
• Employee Theft in “Who Stole the Money, and When?”
• European Union Anti-Money Laundering Directive
• Park Avenue: Money, Power and the American Dream – Movie Analysis
• T-Shirts “SENIOR 2016” and Time Value of Money
• Time and Money in “Neptune’s Brood” by Charles Stross
• Virgin Money Company’s Business Model in Canada
• Money in History and World Cultures
• Is College Education Worth the Money
• Artworks Comparison: Les Demoiselles d’Avignon and Tribute Money
• Money and Happiness Connection – Philosophy
• “Art for Money’s Sake” by William Alden
• Central Bank of Bahrain and Money Supply Regulation
• Psychological Research: Money Can Buy Happiness
• Finance: The History of Money
• Finance in the Book “The Ascent of Money” by Niall Ferguson
• Criminal Law: Blood Money From the Human Organs Sale
• Money as an Emerging Market Phenomenon
• Cyber-Crime – New Ways to Steal Identity and Money
• The Case of Stolen Donation Money
• Money and Banking: The Economic Recession of 2007
• Money and Banking: David S. Ashby’s Perspective
• Christian Moral Teaching and Money
• Money and Capital Markets: Turkey, India and China
• Money and Capital Markets: Central Banks
• Anti Money Laundering and Combating the Financing of Terrorism
• Mobile Money Transfer as an Alternative Product for Vodafone Group Plc
• UK and USA During the Period 2000-2010: Consumer Price Index, Unemployment Rate, Money Supply and Interest Rate
• Money Mechanics in the U.S.
• Money and Markets vs. Social Morals
• Money Laundering In Saudi Arabia
• Inflation Tax – Printing More Money to Cover the War Expenses
• Banks and the Money Supply
• Money Mechanics in Banks System
• Money Laundering In Russia
• Money and Work Performance
• Sports and Money in Australia
• Money Supply and Exchange Rates
• Central Banking and the Money Supply
• The Different Roles Played By the Central Bank, Depository Institutions, and Depositors in the Determination of Money Supply
• Jean-Jacques Rousseau and Karl Marx: The Role of Money in Human Life
• How Saudi Banks Deal With Money Laundery
• The Ascent of Money
• Niall Ferguson’s ‘The Ascent of Money’
• Role of Money in the American Dream’s Concept
• Money, Motivation and Employee Performance
• Money Laundering: Most Effective Combat Strategies
• Money and Commodity Circulatory Processes
• Motivate Your Employees produced by BNet Video for CBS Money Watch
• We Should Use Tax Money to Enforce Mandatory Drug Treatments on Drug
• The World Surrounded by Money
• The World of Money
• Edwin Arlington Robinson: Money and Happiness in “Richard Cory”
• Federal Reserve; Money and Banking
• Ways to Spend Money in Saudi Arabia
• Sports Industry: Morality vs. Money
• Making Money on Music: The Company That Has to Stay Afloat
• Federal Reserve and the Role of Money in It
• What Do Money and Credit Tell Us About Actual Activity in the United States?
• What Influence Does Money Have on Us Politics?
• Can Money Change Who We Are?
• Does Government Spending Crowd Out Donations of Time and Money?
• Does More Money Mean More Bank Loans?
• Are Corporate Ceos Earning Too Much Money?
• Did the Turmoil Affect Money-Market Segmentation in the Euro Area?
• How Appealing Are Monetary Rewards in the Workplace?
• How Does Inflation Affect the Function of Money?
• Can Banks Individually Create Money Out of Nothing?
• Are Credit Cards Going to Be the Money of the Future?
• Does Money Protect Health Status?
• Can Cryptocurrencies Fulfill the Functions of Money?
• What Tools Used by the Federal Reserve to Control Money Supply?
• Are Athletes Overpaid Money Professional Sports?
• Does Electronic Money Mean the Death of Cash?
• What Does Motivate Employees and Whether Money a Key?
• What Are the Three Functions of Money?
• Are Gym Memberships Worth the Money?
• Does Broad Money Matter for Interest Rate Policy?
• Does Money Help Predict Inflation?
• Does One’s Success Depend on the Amount of Money a Person Earns?
• How Does Federal Reserve Control the Money Supply?
• Does Interest Rate Influence Demand for Money?
• Does Commodity Money Eliminate the Indeterminacy of Equilibria?
• Are College Degrees Worth the Money?
• Can Money Matter for Interest Rate Policy?
• How Banks Create Money and Impact of Credit Booms?
• How Can Virtualization Save Organization Money?
• Can Money Diminish Student Performance Disparities Across Regions?
• Wall Street Questions
• Time Management Essay Titles
• Stress Titles
• Bitcoin Research Topics
• Technology Essay Ideas
• Charity Ideas
• Economic Topics
• Cheating Questions
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, March 2). 260 Money Topics to Write About & Essay Examples. https://ivypanda.com/essays/topic/money-essay-topics/

"260 Money Topics to Write About & Essay Examples." IvyPanda , 2 Mar. 2024, ivypanda.com/essays/topic/money-essay-topics/.

IvyPanda . (2024) '260 Money Topics to Write About & Essay Examples'. 2 March.

IvyPanda . 2024. "260 Money Topics to Write About & Essay Examples." March 2, 2024. https://ivypanda.com/essays/topic/money-essay-topics/.

1. IvyPanda . "260 Money Topics to Write About & Essay Examples." March 2, 2024. https://ivypanda.com/essays/topic/money-essay-topics/.

Bibliography

IvyPanda . "260 Money Topics to Write About & Essay Examples." March 2, 2024. https://ivypanda.com/essays/topic/money-essay-topics/.

Question and Answer forum for K12 Students

Money Essay | Importance and Benefits of Money Essay in English

Money Essay: Money is a vital wellspring of everyday routine to experience a solid and satisfying life, despite the fact that it can not measure up to adore and mind. Both have their own significance and benefit. We are giving articles on Money to partake in a paper composing contest in basic and basic words here.

Money is the medium utilized by individuals to purchase required labor and products. It is utilized as the source to satisfy fundamental requirements and is additionally a wellspring of solace throughout everyday life. Money is the main source to carry on with a sound and prosperous life; nonetheless, it couldn’t measure up to the meaning of affection and care. Both have their own significance and advantages. By the way, Money is a helpful and important product to live cheerily arranging all your standard liabilities towards your family and friends and family.

You can read more  Essay Writing  about articles, events, people, sports, technology many more.

Short Essay on Money 300 Words in English

Money is the fundamental need of life, without which nobody can envision a sound and tranquil life. We need money to satisfy our littlest needs. In present-day times, when progress is growing quickly and everybody is following western culture, in such a period, we need more money because of expanding merchandise. On prior occasions, there was training called trade framework, in which anybody would get another thing in return for a certain something. In any case, presently in this advanced world, just Money is expected to purchase everything or thing. it happens.

These days you need Money for each work, for garments, for food, for a safe house and surprisingly in numerous spots you need to pay for water. Despite the fact that it can likewise be said that ‘Money can’t give joy’s yet would you be able to be content with no Money? Since Money is a major piece of our life, at any rate you need Money to be content.

The significance of Money is expanding step by step, in light of the fact that our living has gotten over the top expensive. The significance of Money has expanded for a huge scope in the fields of creation, utilization, trade, circulation, public income and so on It assumes a vital part in deciding pay, work, continues partnership, general value level and so on On the off chance that we take a gander at the present-day situation, there is no uncertainty that he, who has a lot of riches, is viewed as more cultivated on the planet. Consequently, we can say that Money is vital in each part of life.

Importance of Money

Money is a fundamental thing throughout everyday life. In any case, it can’t accept things like time, love and genuine consideration. It can just satisfy the outer requirements of an individual and not the interior necessities like love. These days, everything has gotten costly yet getting them is vital to carry on with basic life. In the event that we don’t have money, nobody can envision the reality of how our circumstances will be.

The demise of an individual is sure because of the absence of Money and on the off chance that he endures, he experiences to confront numerous difficulties. Abundance empowers us to purchase every one of the essential things and helps us for the duration of our life. In the event that we comprehend the significance of Money throughout everyday life, we won’t ever go through Money with no reason or abuse. We can’t look at Money and love, in light of the fact that to carry on with a fruitful life we ​​need both Money and love.

In this cutthroat world, to bring in Money by finding a decent line of work, everybody needs to concentrate well with advanced education from a notable school or college. An individual needs to bring in more money to satisfy the prerequisite of the relative multitude of individuals in the family, particularly for the individual who is the lone worker in the family.

An individual necessities Money to address the issues of all his relatives to eat, wear, and live. The rich have an uncommon personality and notoriety in the general public, be that as it may, the needy individuals spend their lives just getting two suppers per day. Every one of these progressions and contrasts are because of Money as it were.

In any place where there is a shortage of money in the house, there are a lot of struggles. There are squabbles among a couple. Neither does anybody regard each other in the case of bringing in Money. Neighbors and family members likewise peer downward on the destitute individual. He begins cutting her reasoning that the individual never requests Money from her. With this, nobody needs to get to know a destitute individual in the present time.

Money can neither purchase nor stop time nor purchase genuine romance and care together. Yet at the same time it is needed by all, so life can be taken in the correct way. Despite the fact that Money can’t give time and love, it certainly gives us bliss, certainty, fulfillment, physical and mental harmony. Because of which we can carry on with life effectively and each troublesome issue can be settled.

Advantage from Money

You can carry on with a conscious life: An individual is regarded just when he is monetarily prosperous. Something else, in the present society, the bankrupt individual has no regard.

Unadulterated and nutritious food can be eaten: The individuals who have abundance can appreciate an assortment of heavenly and nutritious dinners. What’s more, they can shield themselves from sicknesses.

Your assurance should be possible: In the present society, burglary, theft have expanded a great deal and rich individuals can give security to themselves because of Money.

The credit is repayable: Obligation taken from an individual rich individual can reimburse the credit without any problem.

The happiness regarding material delights can be achieved: With an adequate measure of riches, all material solaces can be appreciated like taking a decent house, great garments, vehicles and different things.

FAQ’s on Money Essay

Question 1. What is the requirement for money?

Answer: The main capacity of cash is to fill in as a mechanism of trade. As a mechanism of trade, cash addresses every one of the troubles of the deal. There is no need for a twofold fortuitous event of needs in a cash economy.

Question 2. What are the benefits of money?

Answer: Having money with you gives you a respectful life, you can have a healthy and nutritious life, you can pay your loans, have a luxurious life, etc.

Question 3. How can we earn money?

Answer: There are a number of ways to earn money such as;

• You can be an employee in a company
• You can start your own business
• You can be an entrepreneur
• You can use social media channels to provide your service

Essay on Money in English for Children and Students

Table of Contents

Essay on Money: Money is the medium used by people to buy required goods and services. It is used as the source to fulfill basic needs and is also a source of comfort in life. Money is the most important source to live a healthy and prosperous life; however, it cannot be compared with the significance of love and care. Both have their own importance and benefits. Nevertheless, money is a useful and necessary commodity to live contentedly disposing all your usual liabilities towards your family and loved ones.

Fill Out the Form for Expert Academic Guidance!

Please indicate your interest Live Classes Books Test Series Self Learning

Verify OTP Code (required)

I agree to the terms and conditions and privacy policy .

Fill complete details

Target Exam ---

Long and Short Essay on Money in English

We have provided some simply written essay on money to help your kids to do better in their essay writing competition.

These Money Essay are written in easy English so that student of any class can easily understand it and also reiterate it or write it down, whenever required.

We have divided following essays under long and short essay on money in English according to the need, to help your kids to do better in their school competitions.

These essay on money will prove useful in your school assignments or general discussion with your family and friends.

Money Essay 1 (100 words)

Money is the most basic requirement of the life without which one cannot fulfill his basic needs and requirements of the daily routine. We can never compare the importance of the money with the importance of love or care. When one need money, love cannot fulfill this requirement and if one need love, money cannot fulfill this requirement.

Both are highly required for the healthy life but they have their significance and importance separately. Both are required by us on urgent basis so we cannot rank both on the same scale. We need money everywhere such as to eat food, to drink water or milk, to see TV, news, subscribe newspaper, wear clothe, get admission and many more requirements.

Money Essay 2 (150 words)

Money is the basic requirement of the life without which one cannot imagine a healthy and peaceful life. We need money even buying a little needle. In the modern time, where growth of civilization is going very fast and following western culture, we need more money because of the increasing prices of everything. Earlier there was a system called barter system in which one was allowed to exchange things to get goods however, in the modern one need only money to buy everything.

The importance of money is increasing day by day as the living has become so costly. The significance of money has increased to a great extent in the field of production, consumption, exchange, distribution, public finance and etc. It plays a very crucial role in determining the input, income, employment, output, general price level of anything, etc.

Money Essay 3 (200 words)

In such a costly and competitive society and world, no one of us can live without money. We need money to fulfil our basic needs of the life such as buying food, and other many basic necessities of life which are almost impossible to buy without money. People in the society who are rich and have property are looked as honourable and respectful person of the society however a poor person is seen as hatred without any good impression.

Money increases the position of the person in the society and gives good impression to him. All of us want to be rich by earning more money through good job or business in order to fulfil all the increasing demands of the modern age. However, only few people get this chance of completing their dreams of being a millionaire.

So, money is the thing of great importance all through the life. Money is required by everyone whether he/she is rich or poor ad living in urban areas or rural areas. People in the urban areas are earning more money than the people living in backward or rural areas as the people of the urban areas have more access to the technologies and get more opportunity because of the easy sources.

Essay on Jan Dhan Yojana

Money Essay 4 (250 words)

Money is very much required thing in the life however; it cannot buy things like time, love and true care. It can only fulfil the outer needs of the person and not the inner needs like true love. Now-a-days, everything has become so costly but necessary to buy for living a simple life. And what if we have no money, either we would die or suffer more if saved.

Money has capability to buy anything virtually and helps us a lot throughout the life. By taking the importance of the money in our life we should never destroy or waste the money without any purpose. We should not compare the money and love because both are required separately to run a successful life.

In this competitive world, everyone wants to get good study with higher education from the popular college and university to get good job in order to earn more money. A person needs more money to fulfil the requirement of the all members of the family especially one who is only working person of the family.

He or she needs to fulfil the eating, clothing and living requirements of the family members and for that money is required. Rich people of the society are given particular recognition and popularity however poor people live their life by arranging just food for two times a day. All the changes and differences are just because of the money.

Money Essay 5 (300 words)

Money is really a very important thing for the human beings to lead their life in the satisfactory way. Unlike animals and plants, we need more money everywhere. In order to live in the society, we need to maintain our status and position in the society for which we need money. In order to eat food or drink water, wear cloth, get admission to the school, take medicine or go to the hospital and other many activities we need lots of money. Now the topic arise is, where we got such required money. We need to get higher level study and do hard works to get good job or open our own business which requires more skill and confidence.

Earlier the condition of poor people was very poor because of the pressure of the rich people. They were not helping the poor people and use them only as a servant on the very low salary. However the condition of the poor people has become good as the rule and regulations of the government as been change in order to equalize the condition of both. Now everyone has equal rights to study higher and get good job. Many people understand that money is the origin of the evil in the mind however I do not think so because thinking is the process of human mind and not the creation of money.

I understand and believe that money is the most important key of happiness gifted by the God. It is the human mind to take anything in different ways. Some people take it only to fulfil their physical needs and they never take it heartily however some people understand everything to the money and they can do anything for getting the money such murder, corruption, underworld work, smuggling, promoting bribe, etc.

Money Essay 6 (400 words)

There is no any doubt that money is so essential for our healthy living. Money is almost everything for us to live a life and maintain the good stats in the society. It is the money which fulfils the need of bringing necessary comforts and amenities of the life. If one has money, he/she can get anything in his/her life. It is the money which helps us in developing good personality, improving confidence, makes us able to creditworthiness, improving capacity, increasing capabilities and enhancing our courage to a great level. Without money we feel helpless and alone in this world where no one is ready to help and assist. In the current materialistic world, money is very important and powerful thing without which one cannot live and survive.

Now-a-days, in order to earn more money in wrong ways, bad people are taking help of corruption, bribe, smuggling, murder rich people of the society, and other callous activities by degrading the moral and ethical values of the humanity. Lazy people follow wrong ways to earn money as they understand that these ways are simple and easy however it is not true. One can earn more money in less time and effort but not for long; surely he would be lost in the near future as he is following wrong and weak way. The people who are earning money by following all the rules of humanity earn less money but for long time and they become the high status personality of the society.

People doing corruption save their money as a black money in other countries to keep hidden from the common public and use that money for bad works or increasing their physical luxury. However, common people of the society respects a lot to the people earning money using wrong techniques as they have fear of them and little bit greediness that they can get some money in return whenever required by giving them respect. They are generally called as the bhai or dada or don. Money cannot buy or stay the time as well as cannot give true love and care however highly required by all of us to run the life on the right path. It cannot give time and love however gives happiness, confidence, satisfaction, feeling of well being mentally and physically, makes life easy by solving all the difficulties, and many more.

All the essays on money given above are written by the professional content writer to help students in getting fulfilled their needs and requirements. Essay on money is generally assigned to the students to write something in their own way. Money essay is given under the category of general essay.

Frequently Asked Questions on Money

Who found money.

Money, in various forms like barter or trade, has existed since ancient times. The first coined money is believed to have been created by the Lydians, in what is now Turkey, around 600 BC.

Who said money is life?

This specific quote isn't attributed to a singular famous person. Various interpretations and contexts might exist, but the idea that money plays a significant role in many aspects of life is widely acknowledged.

What is money quotes?

A popular quote about money is, Money can't buy happiness, but it certainly helps.

What is the nature of money?

The nature of money is abstract. It has no intrinsic value but is accepted as a medium of exchange. Its value is determined by trust and the backing of an authority, like a government.

What is the value of money in life?

The value of money in life goes beyond purchasing power. It provides security, freedom, and opportunities, but isn't the sole determinant of happiness or success.

What is the importance of money?

Money is essential as it enables trade, provides financial security, meets daily needs, and offers the potential for a better life. It's a measure of one's ability to afford services and products.

What is money in own words?

Money is a tool that facilitates trade, allowing us to purchase what we need or desire. It represents value and can be saved, spent, or invested.

What is the few lines on money?

Money is a medium of exchange, used to buy goods and services. It acts as a unit of account, a store of value, and is universally accepted in transactions.

Related content

Get access to free Mock Test and Master Class

Register to Get Free Mock Test and Study Material

Offer Ends in 5:00

Select your Course

Please select class.

Money vs Education: Which Is More Important? (Debate)

• Post author: Edeh Samuel Chukwuemeka ACMC
• Post published: June 9, 2024
• Post category: Scholarly Articles

Money or Education, Which is more Important? (Debate): So, which is more valuable: education or money? Which one should we concentrate on? This appears to be a simple question, but when we think about it, the answer is not that straightforward. Money and education are inextricably linked in our daily lives. On the one hand, money is what drives the majority of our lives.

We have to think about money in practically every decision we make. Education, on the other hand, cannot be overlooked since it provides us with the fundamental tools we require to live. Let’s weigh in on their relative importance and see if we can finally settle this age-old argument.

Recommended: Advantages and Disadvantages of studying abroad

Table of Contents

Why Money is Important

Money is commonly said to be “ not the most important thing in the world.” However, for many individuals, it is right up there with oxygen in terms of significance. These aren’t necessarily materialistic individuals. They just recognize the genuine worth of money.

Money isn’t exciting on its own. What matters is what money can accomplish for you. You have more flexibility and options when you have money. When you have a strong salary or financial resources, you have the freedom to choose where and how you wish to live. When you don’t have much money, on the other hand, making choices may be something you can’t afford. In actuality, the choices available to you may not be choices at all.

Also see: Most profitable skills to learn this year

Undoubtedly, you’ll require money to meet your fundamental needs, which include food, clothes, and shelter. Because of a lack of funds, a poor individual is frequently forced to make compromises even on essential basic requirements. Moreover, medical expenditures nowadays consume a person’s whole life savings. Furthermore, one must have money to obtain an education, as the cost of school is quite expensive these days and is not likely to decrease anytime soon.

While money cannot purchase happiness, it may give you independence, stability, and the ability to follow your aspirations. As a result, money is unquestionably necessary for every excellent thing that provides us financial satisfaction.

Recommended: How to spend less and save more

Why Education is Important

Today, education is more vital than ever before, and it has reached new heights as people have a better knowledge of what it comprises. If you ask yourself, “Why is education important?” your response will almost certainly not be the same as everyone else’s. While having a college degree is tremendously important for a successful profession and is socially acceptable in today’s culture, it is not the sole source of education. In everything we do, education is all around us.

Education may help you become the greatest, most complete version of yourself by allowing you to learn about what interests you, what you’re excellent at, and how to become self-aware and aware of the world around you. It can assist you in finding your position in the world and making you feel whole. Basic life skills and street smarts are built on the foundation of education. While education may appear to be a technical phrase, it refers to all we learn in life on how to live our lives to the fullest. When it comes to being creative in any manner, shape, or form, the mind can only achieve its full potential if it’s given the tools to think outside the box.

Education gives you a sense of stability in life, which no one can ever take away. You boost your prospects of greater professional options and create new doors for yourself by being well-educated. Education gives financial security in addition to stability, which is very important in today’s culture. An excellent education is more likely to lead to a higher-paying career and provide you with the necessary skills. It might provide you with the freedom to make your own decisions as well as be financially independent. Education has the potential to be the most liberating and empowering thing in the world.

Recommended: How to become a successful business entrepreneur

Money vs Education, Which is More Important

Money is required for basic expenses, but that is not the only requirement. Money helps us reach our objectives and support the things we care about most, such as family, education, health care, charity, adventure, enjoyment, and so on. It assists us in obtaining some of life’s intangibles, such as freedom or independence, as well as the opportunity to maximize our abilities and talents. It allows us to chart our path in life. It ensures financial safety. Much good may be accomplished with money, and unnecessary suffering can be prevented or eliminated.

Education, on the other hand, is essential for survival. Everyone needs education at some point in their lives to improve their knowledge, manner of life, and social and financial standing. Although it may not provide you with financial standing in society, a literate mind will undoubtedly set you apart. Education is amazing in that it is not restricted by age.

While money gives us the ability to make a difference in our own lives and the lives of others, it is impossible to obtain an education without it. The cost of education is quite expensive these days, and it will continue to rise in the near future. Education may be too expensive, particularly at private institutions and universities. While you don’t have to pay back your student loans until after you graduate, the payment will ultimately come due. Without funding, education would come to a halt.

Also see: Best side hustles for teachers to make extra money

In a different light, money may be able to buy what you “ desire ,” but education helps you to realize what you “need” to live a better life. This is demonstrated by the numerous non-monetary advantages that may be obtained via education. Money may allow us to have more control over our lives, but it is education that allows us to contribute to society.  Although money is useful, an educated individual understands how to make money in the first place. Education has the potential to open up job opportunities.

With an education, you have the potential to earn more money than others who do not. Obtaining a degree might expand your options in some professions, allowing you to make more money. Many employers provide educational incentives to their workers. Anyone who stays up with current trends will always be able to make more money. If you are well educated, your chances of living in poverty are lower.

Furthermore, you cannot lose or be stripped of your education. Whatever happens, the lessons you’ve learned will be with you. Even if you lose a wonderful job, your degree and experience will assist you in finding work in the future. When a financial catastrophe strikes, you can’t lose what you’ve learned. Even if you become indebted due to unforeseen circumstances, your education will not be taken away from you.

Recommended: Study Abroad: Canada vs Australia – Which is Better?

Nevertheless, much of the narrative about the benefits of going to college and having a degree is centred around the concept that if you have a degree, you’ll be able to make more money. For many people, education is only a means to an end, which is monetary gain.

Some believe, however, that if generating money is your primary incentive for pursuing a profession, you might explore trade schools and other qualifications that may help you earn a fair living. After all, while many people dismiss trade skills such as plumbing and electrical labour, these individuals may amass money more quickly than their more educated counterparts. We frequently read about people who have amassed enormous wealth while having had very little formal education. In fact, having a degree does not ensure that you will earn more since many people without a degree make more money than graduates.

Regardless, education will assist you in developing a decent character, a noble personality, and, above all, will help you become a better person. You will not only be able to make money with education, but you will also be able to efficiently use the money you have made to benefit yourself and others. Money is a slippery slope, but those who figure out what they genuinely value and match their money with those beliefs have the most financial and personal well-being. Education is necessary to become such a person. Never forget that knowledge is power.

Recommended: Countries with the best education system in the world

Money vs Education is a perennial debate. The common view of money and education in our lives has been emphasized in this article. Everyone, after all, has their unique point of view.

Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.

This Post Has 4 Comments

Money is important but education is far more important cuz money is the root to all evil while education is power

Money or education which is more important?

Education is the best, only to those who value it and know how to make use of it Education can bring money, but money at the other side can never bring education Even, a renown people in this world are educated.

Comments are closed.

Writing essay: Is money the most important thing in life?

Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Writing9 with appropriate and specific direction to the original content.

Fully explain your ideas

To get an excellent score in the IELTS Task 2 writing section, one of the easiest and most effective tips is structuring your writing in the most solid format. A great argument essay structure may be divided to four paragraphs, in which comprises of four sentences (excluding the conclusion paragraph, which comprises of three sentences).

For we to consider an essay structure a great one, it should be looking like this:

• Paragraph 1 - Introduction
• Sentence 1 - Background statement
• Sentence 2 - Detailed background statement
• Sentence 3 - Thesis
• Sentence 4 - Outline sentence
• Paragraph 2 - First supporting paragraph
• Sentence 1 - Topic sentence
• Sentence 2 - Example
• Sentence 3 - Discussion
• Sentence 4 - Conclusion
• Paragraph 3 - Second supporting paragraph
• Paragraph 4 - Conclusion
• Sentence 1 - Summary
• Sentence 2 - Restatement of thesis
• Sentence 3 - Prediction or recommendation

Our recommended essay structure above comprises of fifteen (15) sentences, which will make your essay approximately 250 to 275 words.

Discover more tips in The Ultimate Guide to Get a Target Band Score of 7+ » — a book that's free for 🚀 Premium users.

• Check your IELTS essay »
• Find essays with the same topic
• View collections of IELTS Writing Samples
• Show IELTS Writing Task 2 Topics

In some cultures, chldren are often told that they can achieve anything if they try hard enough. what are the advantages and disadvantages of giving children this message?

Young people are often influenced in their behaviors by others in the same age group. some argue that peer pressure is important while others feel it has distinct disadvantages. do the disadvantages of peer pressure outweigh the advantages, an australian friend is coming to visit you, and it will be his/her birthday during the visit. write a letter to your friend. in your letter: • say how you feel about the visit • suggest what you could do on his/her birthday • ask what your friend thinks of your idea write at least 150 words, some people think that interview is not reliable method of choosing whom to employ and there are other better methods. to what extent do you agree or disagree., some people believe that nowadays we have too many choices. to what extent do you agree or disagree with this statement.

The personal check is on the way out. Here's what to use instead.

A growing list of retailers, including Target and Whole Foods, no longer accept personal checks as payment

• Newsletter sign up Newsletter

Policy changes by major retailers may have put another nail in the coffin of what used to be a financial mainstay: the personal check. In July, said CNBC, "Target joined a growing list of retailers, including the Aldi supermarket chain, Whole Foods, Old Navy, and Lululemon, that no longer accept personal checks as payment."

If it's hard to even remember the last time you wrote a check, this may not come as a big surprise. "Only 15% of adults said they wrote a few checks a month in 2023," while a whopping "46% of the more than 1,000 respondents said they hadn't written a single check in 2023," said CNBC , citing a report by GoBankingRates.

If you are one of the holdouts when it comes to using personal checks, here is why you may want to consider finally moving on — and what you can use to transfer money instead.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Why should you reconsider using a paper check?

A major reason to stop relying on paper checks: " Check fraud tied to mail theft is up nationwide," said NerdWallet , and "letter carrier robberies are also on the rise." When checks are lost or stolen, they "can be used to steal money from your checking account," said Experian .

And that is far from the only downside of a paper check. Other drawbacks include the fact that nowadays, " banks typically charge extra for paper checks," and "paper checks may take two days or more to clear," said Experian. Your recipient may also have a harder time actually getting the money, as those " without bank accounts may have to pay fees to cash a check."

Finally, while writing a check is not all that difficult, it is certainly a bit more tedious and can take longer than some of the alternatives now available. The responsibility also falls on you to keep records, rather than automatically having an electronic paper trail.

What are ways to send or exchange money instead of writing a check?

If you have long relied on paper checks, whether to gift money at the holidays, pay a contractor or cover costs for your kid's extracurricular activities, you may not have considered how else to transfer those funds. Turns out, there are a number of other options, including:

Wire transfers: Available through your banking account, wire transfers are a great way to deliver "large amounts ($10,000 or more) from one bank to another within hours or minutes," said NerdWallet . Just note that you may face a fee for transfers — "the median domestic wire cost for sending is $25, and $15 for receiving." A wire transfer can often be a good option for things like "house closing, car purchases [and] sending money to friends and family overseas," said Investopedia .

Peer-to-peer payment (P2P) apps: This category includes options like "PayPal, Venmo and Zelle," all of which "allow you to pay businesses and individuals from a linked bank account or credit card," said Experian. It is possible to send and receive payments "instantly," though "transferring funds from the app to your linked account may take a few days unless you pay a fee." 

Money orders: If you would still rather work on paper, a "safe and secure" alternative to explore is a money order, said Investopedia . These "can be cashed just like checks and used to send money overseas or when you don't have a checking account but need to pay with a check." Just note there is often a limit of around $1,000, and you'll pay a fee.

Cashier's checks: While still technically a check, cashier's checks are a much safer bet than the standard personal check. Cashier's checks are "issued by a bank or credit union to a third party, usually on behalf of a bank customer who pays the bank the face value of the check," said Bankrate . But "because the check is backed by the bank's funds, there is no risk of the check bouncing." Usually "used for major transactions," a cashier's check typically "clears by the following business day and may involve a small fee," said Experian.

Sign up for Today's Best Articles in your inbox

A free daily email with the biggest news stories of the day – and the best features from TheWeek.com

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads. 

Under the radar Fossil records from western Africa show unexpected findings

By Devika Rao, The Week US Published 8 August 24

The Week Recommends From penguins in Cape Town to pandas in Chengdu

By Catherine Garcia, The Week US Published 8 August 24

Talking Point A plea deal reversal follows missed opportunities and complications over torture

By Joel Mathis, The Week US Published 8 August 24

The Explainer If you get paid on a bi-weekly basis, every year has two months in which you'll receive three paychecks

By Becca Stanek, The Week US Published 7 August 24

The Explainer Rate cuts might finally be right around the corner

By Becca Stanek, The Week US Published 2 August 24

The Explainer An immediate cash bonus may sound great, but there is a lot to consider before jumping ship

By Becca Stanek, The Week US Published 31 July 24

The Explainer These books won't bore you with indecipherable financial jargon

By Becca Stanek, The Week US Published 29 July 24

The Explainer Does it make sense to buy a home in need of a little TLC?

By Becca Stanek, The Week US Published 26 July 24

The Explainer The Federal Reserve is poised to slash interest rates in the coming months

By Becca Stanek, The Week US Published 24 July 24

The Explainer Decide if it makes more sense to brace for big vet bills or pay a regular premium

By Becca Stanek, The Week US Published 22 July 24

The Explainer Make the best choice for your wallet

By Becca Stanek, The Week US Published 19 July 24

• Contact Future's experts
• Terms and Conditions
• Privacy Policy
• Cookie Policy
• Advertise With Us

The Week is part of Future plc, an international media group and leading digital publisher. Visit our corporate site . © Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY 10036.

Buca di Beppo files for Chapter 11 bankruptcy after closing several locations

On the heels of closing scores of locations in recent weeks, Buca Di Beppo has filed for Chapter 11 bankruptcy, court documents filed Monday show.

The company blamed its financial woes on things including rising costs and hiring difficulty, according to information from the restaurant and court papers filed in U.S. Bankruptcy Court for the Northern District of Texas.

In its 21-page petition obtained by USA TODAY, the Orlando-based casual restaurant chain named 30 creditors it owes close to $50 million.

The chain of Italian-American restaurants has been slowly shuttering its doors since COVID hit in 2020 and last month closed nearly 20% of its locations, according to  Restaurant Business Magazine.

On July 30,  the magazine reported Buca's parent company Earl Enterprises said several of its locations "had been unable to recover from the pandemic and other market pressures ."

In a statement released by the eatery Monday, leaders wrote Buca is restructuring 44 core locations and is in the process of opening one new location.

"The company is committed to ensuring that the restaurants operate as usual, and all gift cards, reservations, and promotional services currently remain active and redeemable," the statement reads.

"While the restaurant industry has faced significant challenges, this move is the best next step for our brand," said the company's President Rich Saultz. "By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future. Buca di Beppo has been a beloved gathering place for celebrations and memorable meals for many years, and we are enthusiastic about entering this next phase of our brand's story."

What Buca di Beppo stores closed most recently?

Known for their family-style serving portions of Italian food, the company most recently shuttered other locations in Arizona , California, Pennsylvania, Utah and Michigan.

Founded in 1993 in a Minneapolis apartment basement, Planet Hollywood International purchased the casual chain in 2008.

How many Buca di Beppos remain open?

According to the company, 44 locations in 14 states will remain open.

The Buca di Beppo website appears to list active restaurants on it's location finder . 

"We believe this path will best allow us to continue to serve Buca's patrons and communities for many years to come," William Snyder, Chief Restructuring Officer of Buca C, LLC, released in a statement Monday after signing the bankruptcy petition.

"We are open for business in 44 locations, and we expect day-to-day operations to continue uninterrupted.," Snyder said. "We anticipate moving through this process as quickly and efficiently as possible to emerge as a stronger organization built for the future."

The petition named the company's attorney, Amber Carson who could not immediately be reached.

USA TODAY has reached out to Buca for more information.

Contributing: Maria Frances and Bahar Anooshahr

Natalie Neysa Alund is a senior reporter for USA TODAY. Reach her at [email protected] and follow her on X @nataliealund.

Our use of cookies

We use necessary cookies to make our site work (for example, to manage your session). We’d also like to use some non-essential cookies (including third-party cookies) to help us improve the site. By clicking ‘Accept recommended settings’ on this banner, you accept our use of optional cookies.

Necessary cookies

Necessary cookies enable core functionality on our website such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We use analytics cookies so we can keep track of the number of visitors to various parts of the site and understand how our website is used. For more information on how these cookies work please see our Cookie policy .

Quantitative easing and quantitative tightening: the money channel

Staff working paper no. 1,090.

By Michael Kumhof and Mauricio Salgado-Moreno

We develop a DSGE model in which commercial banks interact with the central bank through the reserves market, with each other through reserves and interbank markets, and with the real economy through retail loan and deposit markets. Because banks disburse loans through deposit creation, they never face financing risks (being unable to fund new loans), only refinancing risks (being unable to settle net deposit withdrawals in reserves). Permanent quantitative tightening, while reducing the equilibrium real interest rate, has significant negative effects on financial and real variables, by increasing the cost at which reserves-scarce parts of the banking sector create money. Temporary net deposit withdrawals, which affect the funding cost and loan extension of one part of the banking sector at the expense of another part, have highly asymmetric financial and real effects. The quantity and distribution of central bank reserves, and the extent of frictions in the interbank and reserves markets, critically affect the size of these effects, and can matter even in a regime of ample aggregate reserves. Countercyclical reserve injections can help to smooth the business cycle. We find that countercyclical reserve quantity rules can make sizeable contributions to welfare that can reach a similar size to the Taylor rule.

Sign up for latest updates

Other staff working papers, fire sales of safe assets, whose asset sales matter, firms’ sales expectations and marginal propensity..., firms’ sales expectations and marginal propensity to invest, housing-consumption channel of mortgage demand.

Back to top

The Real Reason People Aren’t Having Kids

It’s a need that government subsidies and better family policy can’t necessarily address.

Produced by ElevenLabs and News Over Audio (NOA) using AI narration.

The facts of the so-called fertility crisis are well publicized: Birth rates in the United States have been trending down for nearly two decades, and other wealthy countries are experiencing the same. Among those proposing solutions to reverse the trend, the conventional wisdom goes that if only the government were to offer more financial support to parents, birth rates would start ticking up again.

But what if that wisdom is wrong?

In 1960, American women had, on average, 3.6 children; in 2023, the total fertility rate (the average number of children a woman expects to have in her lifetime) was 1.62 , the lowest on record and well below the replacement rate of 2.1. Meanwhile, rates of childlessness are rising: In 2018, more than one in seven women aged 40 to 44 had no biological children, compared with one in 10 in 1976. And according to a new report from Pew Research Center , the share of American adults younger than 50 who say they are unlikely to ever have children rose 10 percentage points between 2018 and 2023, to 47 percent. In mainstream American discourse, explanations for these trends tend to focus on economic constraints: People are deciding not to have kids because of the high cost of child care, a lack of parental leave, and the wage penalty mothers face. Some policy makers (and concerned citizens) suggest that expensive government interventions could help change people’s minds.

But data from other parts of the world, including countries with generous family policies, suggest otherwise. Today, every OECD country except Israel has a below-replacement fertility rate, and the speed of the decline during the past decade has outpaced demographers’ expectations. In 2022, the average fertility rate of European Union countries was 1.46 ; in 2023, South Korea’s was 0.72 , the lowest in the world.

South Korea has spent more than $200 billion over the past 16 years on policies meant to boost fertility, including monthly stipends for parents, expanded parental leave, and subsidized prenatal care—yet its total fertility rate fell by 25 percent in that time. France spends a higher percentage of its GDP on family than any other OECD member country, but last year saw its lowest number of births since World War II . Even the Nordic countries , with their long-established welfare states, child-care guarantees, and policies of extended parental leave, are experiencing sharp fertility declines.

Policy shifts that make life easier and less expensive for parents are worthwhile in their own right. But so far, such improvements haven’t changed most countries’ low-fertility rates. This suggests the existence of another, under-discussed reason people aren’t having kids—one that, I have come to believe, has little to do with policy and everything to do with a deep but unquantifiable human need.

Read: To have or not have children

That need is for meaning . In trying to solve the fertility puzzle, thinkers have cited people’s concerns over finances, climate change, political instability, or even potential war. But in listening closely to people’s stories, I’ve detected a broader thread of uncertainty—about the value of life and a reason for being. Many in the current generation of young adults don’t seem totally convinced of their own purpose or the purpose of humanity at large, let alone that of a child. It may be that for many people, absent a clear sense of meaning, the perceived challenges of having children outweigh any subsidy the government might offer.

In his 1960s work on the economics of the family, the Nobel Prize–winning economist Gary Becker theorized that household decisions, including fertility choices, could be analyzed through an economic lens. More specifically, children could be analogized to goods, like a house or a car; the number that parents had was related to what they could afford in terms of time and money. By this logic, making the goods less expensive—expanding household budgets via subsidies, return-to-career guarantees, and other financial carrots—should be enough to push parents to have more kids.

Governments have generally hewed to this assumption when launching pronatal policies. But two new books exploring why people do or don’t have children—works that take wildly different approaches to the question—suggest that this method is flawed.

Read: Would you have a baby if you won the lottery?

In Hannah’s Children: The Women Quietly Defying the Birth Dearth , Catherine Ruth Pakaluk, an economist and a Catholic mother of eight, compiles interviews with 55 women from across the United States who have five or more children—hers is a qualitative study of Americans happily breaking from the low-birth-rate norm. Connecting the author and her unusual subjects (only about 5 percent of U.S. mothers have five or more kids) is a shared certainty that children are an unqualified good, and that raising them is an activity freighted with positive meaning.

Then there are those who are much less sure. In What Are Children For? On Ambivalence and Choice , Anastasia Berg, an academic and editor at The Point , and Rachel Wiseman, an editor at the same magazine, engage literature, philosophy, and anti-natalist texts to wrestle with whether children are worth having at all. The decision is described as “paralyzing” and “anxiety-provoking,” to be approached with trepidation (even though the authors find individual clarity by the end). But their book echoes Pakaluk’s in one striking respect: Both works share the view that current political strategies for encouraging people to have children are lacking a crucial element. “As attractive as economics may be as a solution to the riddle of the growing ambivalence about having children, it is partial at best,” Berg and Wiseman write. Pakaluk observes, “Cash incentives and tax relief won’t persuade people to give up their lives. People will do that for God, for their families, and for their future children.” In other words, no amount of money or social support will inspire people to have children—not unless there is some deeper certainty that doing so makes sense.

In many quarters, that sort of certainty has become elusive. Indeed, Berg and Wiseman dwell on its opposite: anxiety about whether having children is good or whether it’s an imposition, a decision that might deprive a person of individual fulfillment or even make the world worse in the long run—by, for instance, contributing to climate change, overpopulation, or the continuation of regressive gender norms. “Becoming a parent,” they write, “can seem less like a transition and more like throwing yourself off a cliff.”

The authors touch on the standard narratives of why young people are delaying or forgoing children—financial anxiety, difficulty finding a partner, worries that having kids will be incompatible with their career—but these they describe as “externals,” borrowing a term from the family therapist and author Ann Davidman, not the core concern. One of their interviewees notes that if money were no object, she would be “at least neutral” on the subject of having a child, which is still some distance from positive. Instead, more existential worries emerge, pointing to a loss of stabilizing self-confidence among recent generations, or to the lack of an overarching framework (religious or otherwise) that might help guide people toward a “good” life. “The old frameworks, whatever they were, no longer seem to apply,” Berg and Wiseman write. “And the new ones provide us with hardly any answers at all.”

Read: The two ways to raise a country’s birth rate

The mothers whom Pakaluk profiles approach childbearing with far less ambiguity. As one told her, “I just have to trust that there’s a purpose to all of it.” Her interviewees’ lives are scaffolded by a sincere belief in providence, in which their religious faith often plays a major role. These mothers have confidence that their children can thrive without the finest things in life, that family members can help sustain one another, and that financial and other strains can be trusted to work themselves out. And although the obvious concerns are present—women describe worries about preserving their physical health, professional standing, and identity—they aren’t determinative. Ann, a mother of six, tells Pakaluk that she doesn’t feel “obliged” to have a large family but that she sees “additional children as a greater blessing than travel, than career … I hope we still get to do some of those things, but I think this is more important. Or a greater good.”

It’s a deceptively simple claim—and reinforces the notion that if people are going to have children, they need more than a hunch that human life is valuable. “It is not just the possibility of goodness but its actuality that fuels our deepest longing to ensure a human future,” Berg and Wiseman propose. And yet, we live in a time when even those who are certain about having kids are sometimes treated with skepticism. To proclaim that parenthood could be a positive experience is, in some circles, slightly gauche . “To assert the goodness of one’s own life,” the authors write, “is to risk coming across as privileged, or just hopelessly naive.”

Contrast that with the attitude of Hannah, a mother of seven who tells Pakaluk that each new child “brings benefit to the family and to the world.” She and the other mothers exemplify what happens when meaning is deeply internalized: Many children tend to result—and, according to these women, bring joy with them.

Of course, joy is a hard thing for any policy to promise. Government agencies rely on stats—income, years, “productivity”—to make the case for interventions, and tend to overlook the unmeasurable. Intangible incentives such as purpose, belonging, and love don’t always seem rational. As Robert F. Kennedy put it in a 1968 speech at the University of Kansas, delivered less than three months before he was assassinated: “The gross national product does not allow for the health of our children, the quality of their education, or the joy of their play … It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile.”

Kennedy was, essentially, urging Americans to pursue meaning, suggesting that only by doing so would they have the fortitude to fight despair. But “meaning” is not something governments can easily provide; it tends to stem from uniting in the face of undesirable crises (wars, pandemics) or from the sorts of broadly enforced norms (religious, cultural) that many no longer share. (This could be a clue as to why Israel has bucked the low-birth-rate trend: The religious edict to “be fruitful and multiply” is an accepted part of the national culture, and childbearing is viewed as a contribution to a collective goal.)

Politically, there’s very little upside—and often significant downside—in pointing to abstractions without easy solutions. If falling birth rates can be attributed to a loss of meaning, the question then becomes if there can be any government-based solution to fertility decline. People debating whether to have children seem to be seeking certainty that life is a good thing, that more life would thus be better, and that assistance, if needed, will arrive. Government policy can help with the last part. The first two assurances will most likely come only from another source.

​When you buy a book using a link on this page, we receive a commission. Thank you for supporting The Atlantic.

About the Author

More Stories

Gambling Enters the Family Zone

Stop Shouting Down the Women Going Off the Pill