Introducing Basic Money Management
Understanding Money
Before you learn what money is you need to understand the main purpose why money money was created.
There were two reasons why money was created.
1. To spend it. Years ago when someone wanted something, they would have to barter for it, meaning they would trade something in return for something. For example, if you wanted groceries, you could give the person owning the groceries something you had valuable in exchange for the groceries. So when the bartering system began to get abused, congress came up with another way to handle it.
They decided to print an currency called money. They placed a value on each bill that was printed. So whatever the cost of the item or service you wanted, you could use that much money to pay for it.
2. To Save some of it.
