Understand Money - What is Money

money tutorial >>Step 1>>understand money

Step 1: Understand Money

What is Money?

Money is ofter defined in several ways. That's why defining money is somewhat odd due to the fact that it represent so many things. So here's a list of things that pertains to money.

Cash

Coins

Paper Bill (Dollar Bills etc)

Money Orders

Cashier Checks

Travelors Checks

Assets

Certificates of Deposits

Stocks

Bonds

Gold

Silver

Collectible Items

Real Estate

Land

Wealth

etc.

Why Was Money Created?

Three reason why money was created:

1) To spend it

2) Buy something with it or

3) Trade it for something

Before Money

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 (Lawmakers) came up with another way to handle it.

They decided to print a 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.

Money Is Currently Being Used For

Since money started having a value, people began to use money in other ways.