Importance of Money – Essay

Currency is basically a medium of exchange in the form of banknotes and coins. Banknotes and coins are collectively referred to as cash, a synonym for money.

Money is defined as anything of value which serves as generally acceptable means of exchange, a legal tender that can be used to settle the debt and a measure of value. Money is variously described as a unit of measuring accounting and a means to either store or save buying power.

The three functions of money are;

  • The medium of exchange; it is used to facilitate the exchange of goods and services in the market.
  • Unit of account; money is a consistent means of quantifying the value of goods and services.
  • Store of value; you can sell and store your property in form of money to preserve its value.

Money falls into two categories; Commodity type (money with intrinsic value) and checkable money, that is, the ones with no intrinsic value.

Importance of money

  • With enough money you will have enough food meaning poverty will never come anywhere close to you.
  • Money enables you to maintain good health. It enables you to utilize modern technology to improve your health.
  • It creates power and reputation. Reputation, in turn, creates an authority which is worshipped by most people.
  • Cash defines admirable personalities. You can acquire attractive attributes like skills and education with money.
  • It is a measure of success. People who have a lot of money are considered successful (and vice versa) in society.
  • Money gives you stress-free life. With cash, you do not have to constantly worry about basic needs.
  • It enables you to take good care of yourself. With cash, you can join a gym among other things that make you healthy.
  • Cash allows you to pursue your interests, hobbies and favorite careers to the highest level.
  • Money can take you to very attractive places where you can engage in different fulfilling practices.
  • With the money you can help the less fortunate in the community more by donating clothing and foodstuffs.
  • Money can lengthen your lifespan because you are able to make healthier choices about what you eat.
  • Enough cash allows you to eat your favorite foods and indulge in entertainment activities of your choice.
  • When you have enough money, you can afford to buy vitamins and supplements for your family members.
  • Money brings opportunities and possibilities. You can invest, start an organization or even spend on a worthy cause.
  • Money determines how and where you spend your time. Accumulate enough money to live in prestigious locations.
  • Money allows you to exercise your creativity and try out ideas. You have the money to start and run your dream business.


While money is not everything it definitely helps you acquire many positive attributes that play a vital role in enriching your life. It gives you freedom to try out ideas, tour places and make choices. With enough cash you can choose when to live and raise your children how you want to live your life and with who you want to spend the rest of your life with. Cash eliminates worries and anxieties that ruin quality of life.

By: Joni Kim