Essay on Money
Money is a good used to buy goods and services and is an essential commodity for survival. It is in the physical form of coins, notes and cheques. Also, the assets, property and resources owned by someone is a form of money.
Evolution of Money
Barter System: During ancient times, a system of barter was introduced to exchange goods and services. For instance, a tool was exchanged for clothes or food item. It seemed pretty straightforward, but the trade was supposed to fulfil both the parties needs or else it would not take place. So one must find someone for the deal to happen. Hence this system prevailed for many centuries and spread across the globe.
Coins: Then in 600 B.C the coins were minted and used as the official currencies of many countries. The pioneers who invented coins were from the kingdom of Lydia in Turkey. These coins were made of metals like gold, silver, bronze etc. They were round and flat and easy to carry.
The kings and queens stamped pictures of themselves or their Gods and Goddesses which acted as the denominations and provided an identity to the kingdom. Greeks made more significant coins and believed that coins had magical powers. Romans stamped their emperor’s picture to make him famous. Pictures of dragons and animals were used by Indians.
Paper Money: It was invented by the Tang Dynasty in China during the 7th Century. Paper money was lightweight, foldable and portable to carry. Because of its bigger size pictures, denominations and names were printed easily. Later it gradually spread in the whole world and was widely used by everyone.
Types of Money
In economics, money is classified into four types-commodity, fiat, fiduciary and commercial bank money. Commodity money is closely related to the barter system as it involves the exchange of goods and services in return for goods and services. Here the value is defined according to the demand of the product in the market.
Fiat money receives value through government, which means the government approves it legally and is circulated in the market. Everyone is expected to accept this type of money as a means of payment. Modern economics is based on this type of money. Examples are coins and bills. Fiduciary money is not declared legal tender by the government. People are not required by law to accept this as a means of payment.
As long as people are confident and trust their fellow beings, then they can use it for payment just like regular fiat money. Examples are cheques or drafts. Commercial bank money claims that can be used to purchase goods and services. This is generated by sanctioning loans to the people.
Impact of Money on Human Life
Everybody dreams of becoming rich in terms of financial status and improve their standard of living. It affects our behaviour to a larger extent and alters our time and effort. Any work or task which guarantees money is always done faster and in a better way. Money cripples our values like empathy and compassion. We tend to become more and more materialistic.
Ego and attitude take over, and an individual starts displaying harsh and aggressive behaviour. This results in hurting others by making disparaging comments about an individual’s personality or financial stature.
Researchers have found that children and adults who belong to affluent background fall prey to drug addiction due to heavy pressure and negligence from parents. They are vulnerable and weak because of the lack of guidance and support. No one is present to correct them.
There is an absence of love and care, but money is available abundantly. So these children bully other kids into venting out their frustration and jealousy and end up being brats who lack moral ethics. Academically they perform poor, and their grades drop eventually thus paralysing their self-esteem and morale.
Earning money and maintaining status becomes compulsive. This involves people who are addicted to gambling, eating, and shopping for luxurious and high-end brands. Life becomes impossible to survive without the things as mentioned above.
Fraudulent and immoral ways are adopted to satisfy these needless wants. Relationships get affected as the breadwinner gets trapped in money, making business thus ignoring his/her role towards the family.
A wise old saying that money cannot buy happiness still holds relevance even today. Wealthy people show a high rate of depression and loneliness than the middle class and poor people. This is because despite having a tremendous amount of money, they are unhappy and sad.
In a Nutshell
Parents should be more aware of the power of money. Children are great observers and learn through the actions of their parents. Kids quickly learn the kind of activities performed by parents in term of payment.
Their attitude towards money influences kids regarding fund management and wastage. Parents must check their peer group and the kind of relationships they have. Children’s social and psychological aspect is essential to understand their character.
Parents should instil the values of respect and saving money for future use. Health, education and basic needs should be considered necessary. Splurging should be avoided as far as possible. Only those items and things must be shopped which are required. Redundant and unnecessary items must be eliminated. The concept of charity should be introduced since childhood.
Due to friends envy and jealousy people who want to buy a bigger and plush apartment hold themselves thinking that they might lose their friends. But the real question is, were they your friends if they feel that way for you? Well, this question shouldn’t arise if the circle of friends are faithful and loyal. Therefore it is mandatory to have a healthy and positive people as friends in our life.
In today world, money is indeed important, and it makes us comfortable, life becomes happy, and new opportunities are created. Still, it is not superior to our family, friends and good relations. It is up to us how much importance and power we attach to money and depending on that we should set our priorities.