The world revolves around money. The economy, businesses, and individuals rely on the exchange of money for products and services. However, money has not always been used as the currency to purchase goods and services. Before this method of exchange, individuals would enter a trading agreement, to trade goods.
Money is a concept that is incorporated under the higher-level notion of exchange. The method of exchange entails the use of a method of exchange that is issued into circulation by a central authority and financial institutions such as banks. The use of money as currency in the modern days is so accepted that the majority of people will go through their whole life without questioning why the cash in their wallet has value, or even why it exists at all and why societies need it.
Many individuals will state that they do not need the money and that money does not make you happy. However, realistically, money is vital to peoples’ lives and society in general. Although historically, societies may have lived through the exchange of goods and not relying on the value of money itself, modern society today could not function without money as a currency. Money plays a huge role in society, in a variety of ways, such as in business, at employment, and even in education. The money supports people to attain a better quality of education, a larger chance of business success, higher work productivity, and even better quality of life overall.
1. Money Currency Exchange
The fact that so many different countries use money as a method of exchange, albeit different currencies, allows you to earn in one country and still use different services for currency exchange, enabling you to exchange one country’s currency for another by implementing buy and sell transactions. For example, if you have U.S. Dollars and you want to exchange them for British Pounds Dollars, you can do this by bringing your U.S. Dollars to the currency exchange store and buy British Pounds with them. The amount you would be able to purchase would be dependent on the international rate, which value changes on a daily basis.
2. It is an Easier Method of Exchange
Early methods of trading sounds easier and fairer for some, although money has made the ability to purchase goods much easier. For example, if money did not exist and we continued using old methods of bartering, an individual who has cows but needs bananas must find only someone who has bananas but is also willing to trade them for the cows. Even if the individual found someone with bananas who wants to trade them for cows, further issues will arise, such as how many bananas a cow is worth With this method in use, being able to get what you want can be very difficult, tiring and somewhat inefficient as it requires individuals to negotiate and come to an agreement.
3. Money Provides Flexibility
Paper currency has no actual value, however, it does act as a universal way to validate the accrued value. Thus, even in prison where access to paper money is prohibited, prisoners develop other monetary systems to signal wealth. One of the greatest advantages of using money currency over barter is its flexibility. You can take it anywhere, and you can have it be accepted anywhere to get any goods you want.
4. Higher Quality of Education
Every individual in society has to invest their money in education for them to gain further knowledge. This not only includes education received at school, but any other additional learning that provides you with extracurricular abilities such as learning how to play the piano, art, and dancing, which people will usually have to pay for. Having money, in exchange for developing additional abilities and skills can determine how many opportunities someone has in the future. Therefore, money allows individuals to develop better futures.
5. Money is Vital in The Business World
Money also plays a significant role both in our society and in the business world. Worldwide in business, the majority of interactions that individuals have entailed a huge amount of money, such as investment. On the topic of investment, businessmen devote a lot of their money to a specific market and as the market gets bigger and develops a higher status, the worth of money invested also grows with it. In this investment, people earn a lot of money, but oftentimes, they lose all of their fortunes. The significance of these businesses in our society is that it supports our economy to function well. These businesses support factories to function properly, which in turn enables supply to meet the demands of the consumers. In fact, it is the factories and markets that provide the people with the goods that they necessitate. The society will potentially lose direction if the different types of business operating around the world cease. If one business stops other businesses get affected and ultimately the supply would not meet the demands of the population.
6. Better Quality of Life
Money allows every business, and in turn, its employees receive an equal amount of money in exchange for their service. Salaries are evidence of an individual’s effort and devotion to the work they do. Salaries vary from one to another depending on the type of job people do and the position they hold within the company. People use the earnings they get from their work in many ways. They buy the necessities that they need to maintain their living such as home, food, bills, and car. As previously mentioned, these salaries are also used to accomplish the high-quality of education. There are great differences between people who work and earn a salary and people who do not, as obviously, people who are not able to earn a salary will in turn not be able to have shelter, food, or access to health care. This emphasizes the importance of money in society.
Although many people state money is the root of all evils and societies would thrive and individuals would benefit from more freedom if money did not exist, it is clear that money does benefit our society in general and that it brings order and a system that everyone in the community can benefit from.