the value of money essay

Essay on Value of Money

Students are often asked to write an essay on Value of Money in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Value of Money

Understanding money.

Money is a medium of exchange for goods and services. It is a tool that allows us to buy what we need and want.

The Importance of Money

Money is important as it enables us to live comfortably. It provides us with food, shelter, and education.

Managing Money

Learning to manage money is crucial. It involves budgeting, saving, and investing wisely.

In conclusion, money has immense value. It’s not just about buying things, but also about securing our future.

Also check:

• 10 Lines on Value of Money

250 Words Essay on Value of Money

The concept of value.

Money, a medium of exchange, has transformed from barter to digital currencies. It holds a value that is universally acknowledged, enabling people to acquire goods and services. However, the value of money isn’t merely its purchasing power. It also represents opportunity, security, and freedom.

Money as a Measure of Worth

Money is often perceived as a measure of worth. The more money one has, the more value they are perceived to hold. This perspective, however, is flawed. Ascribing worth to individuals based on their wealth can lead to a distorted understanding of value, neglecting qualities like kindness, creativity, and resilience.

The Temporal Value of Money

The temporal value of money is a crucial economic concept. It suggests that money available now is worth more than the same amount in the future due to its potential earning capacity. This principle underlies the concepts of interest, investment, and risk.

Money and Freedom

Money can grant freedom, allowing individuals to make choices and decisions without constraints. However, this freedom can also lead to a paradox where the pursuit of money becomes a trap, limiting personal growth and happiness.

In sum, the value of money is a complex concept, extending beyond simple purchasing power. It’s a measure of worth, a temporal asset, and a tool for freedom. As we navigate our financial journeys, understanding these various dimensions can help us use money as a tool for fulfillment, rather than viewing it as the ultimate goal.

500 Words Essay on Value of Money

Introduction: the concept of money.

Money, a medium of exchange, is a fundamental concept in our society. It is a tool that allows us to acquire goods and services, and it is a measure of value that facilitates trade and commerce. However, the value of money is not just limited to its purchasing power. It has a broader, more profound significance that extends to individual lives, society, and the global economy.

The Personal Value of Money

On a personal level, the value of money is often equated with freedom and security. It provides the means to fulfill basic needs and pursue personal aspirations. It also offers a safety net against unforeseen circumstances. However, it’s important to understand that money is a tool, not an end in itself. The value of money lies in its use and the quality of life it can provide, rather than the accumulation of wealth for its own sake.

The Social and Economic Value of Money

Societally and economically, money serves as a common measure of value, facilitating trade and economic interactions. It is the lifeblood of the economy, enabling the flow of goods and services. Money also confers social status and power, often serving as a yardstick for success. However, this can lead to societal disparities and economic inequality, highlighting the importance of fair wealth distribution.

The Psychological Value of Money

Psychologically, money can impact our behaviors, decisions, and emotions. Studies have shown that our relationship with money can affect our mental health, stress levels, and overall happiness. The psychological value of money is subjective and varies from person to person. Some may find value in the security money provides, while others may value the opportunities it affords for experiences and personal growth.

The time value of money (TVM) is a fundamental concept in finance. It holds that a dollar today is worth more than a dollar tomorrow due to its potential earning capacity. This principle underlies many financial decisions and strategies, emphasizing the importance of prudent management and investment of money.

Conclusion: The Multifaceted Value of Money

In conclusion, the value of money is multifaceted and extends beyond its purchasing power. It holds personal, societal, economic, psychological, and temporal value. Understanding these aspects can help us navigate our financial decisions and foster a healthier relationship with money. However, it’s crucial to remember that while money is a powerful tool, it is not the sole determinant of success or happiness. It is the means to an end, not the end itself.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

• Essay on Saving Money
• Essay on Pocket Money
• Essay on Money Is the Root of All Evil

Apart from these, you can look at all the essays by clicking here .

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Importance of Money Essay - 100, 200, 500 Words

Money is a commodity accepted by general consent as a medium of economic exchange. It is the principal measure of wealth. It is any good that is widely used and accepted in transactions. Human life will have a lot of changes with the presence and absence of money. Money has become the most vital part of life.

100 Words Essay On Importance Of Money

Money is a critical factor in our lives as it helps us to meet our basic needs and desires. It provides us with a sense of security and helps us to plan for the future. Money enables us to buy food, shelter, and clothing, and to access healthcare and education. Additionally, it provides us with the means to enjoy leisure activities and to travel. Money is also important in terms of personal and professional development, as it allows individuals to invest in themselves and their careers. Furthermore, money plays a crucial role in the economy, as it is used for transactions and for saving and investing.

200 Word Essay On Importance Of Money

The status of a person in society is impacted by how much money they have. We all desire financial success either b y working hard or succeeding in business. However, only a few people seize the opportunity to realise their dream of becoming a millionaire. Money also provides a measure of economic stability, as it allows for the management of inflation and the allocation of resources. On a personal level, money helps to meet basic needs and provide a sense of security, allowing individuals to plan for the future and pursue their goals and aspirations.

Everyone needs money, no matter how wealthy they are. Knowing the value of money in our lives helps us to avoid wasting or squandering it for any reason. The only reason for all the changes and variations in life is money. From the moment we begin till the moment we go to sleep, everything that happens in between requires the use of money. However, it is important to remember that money is not everything, and that true happiness and fulfillment come from other sources such as relationships, personal growth, and contributing to the community. Money is important, but it should not be the driving force in one's life.

500 Word Essay On Importance Of Money

Creation of money.

People bartered for goods and services before money was invented. About 5000 years ago, the Mesopotamian people created the shekel. This is considered the first known form of currency. Around 650 to 600 BC, gold & silver coins were stamped and used to pay armies. From then to now, money's importance has been increasing daily.

Origin of money

The word money is derived from the Latin word "Moneta" . Moneta means coin . In the ancient world, Juno was often associated with money.

Types of Money

There are seven types of money—representative, fair, paper, commodity, coinage, digital and commercial bank money . This money is used for exchange depending on their need and requirement.

Properties of money

The different properties of money are durability, divisibility, portability, uniformity, acceptability and limited supply. Having such unique and essential properties adds value to money.

Basic Need For Money

No matter their financial situation, everyone needs money. Money is required for many things, including purchasing clothing, housing, food, and other necessities. It's imperative to satisfy these needs. Our personal and societal well-being will suffer severely if we don't have enough money to achieve it.

Uses of money

In reality, we can say there are only five main uses for money

We can use it to live.

We can give it.

We can pay taxes.

We can repay debt and

We can save or grow it.

Power Of Money

Money has significant power to rule human life. It provides people with the ability to have the freedom to do what they want, be who they want and go where they want. Life with money will have success, freedom, choice, security, happiness and many more. Without money, we would be reduced to a barter economy. For every penny we spend in life, we need to think twice about whether it is worth it. Life without money shows us what adjustment is, what scarcity or starving for food is.

Impact Of Money

Money has a significant impact on our lives, influencing various aspects such as:

Basic necessities: Money allows us to meet our basic needs such as food, shelter, clothing, and healthcare.

Security: Having a stable source of income provides financial security, allowing us to plan for the future and reducing stress.

Career and personal development: Money provides the means for individuals to invest in themselves and their careers, allowing for personal growth and professional advancement.

Lifestyle: Money affects our lifestyle and the choices we make, from the type of home we live in to the leisure activities we pursue.

Relationships: Money can influence relationships, as disagreements over financial issues are common and can cause stress and tension.

Social status: Money affects social status, as income and wealth can determine access to certain opportunities and experiences.

Mental well-being: Money has a significant impact on mental health, as financial stress and insecurity can cause anxiety and depression.

In conclusion, money affects many aspects of our lives and has the potential to greatly impact our well-being, both positively and negatively. It is important to manage money wisely and to strive for financial stability while also balancing other important aspects of life.

Explore Career Options (By Industry)

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Data Administrator

Database professionals use software to store and organise data such as financial information, and customer shipping records. Individuals who opt for a career as data administrators ensure that data is available for users and secured from unauthorised sales. DB administrators may work in various types of industries. It may involve computer systems design, service firms, insurance companies, banks and hospitals.

Bio Medical Engineer

The field of biomedical engineering opens up a universe of expert chances. An Individual in the biomedical engineering career path work in the field of engineering as well as medicine, in order to find out solutions to common problems of the two fields. The biomedical engineering job opportunities are to collaborate with doctors and researchers to develop medical systems, equipment, or devices that can solve clinical problems. Here we will be discussing jobs after biomedical engineering, how to get a job in biomedical engineering, biomedical engineering scope, and salary. 

Ethical Hacker

A career as ethical hacker involves various challenges and provides lucrative opportunities in the digital era where every giant business and startup owns its cyberspace on the world wide web. Individuals in the ethical hacker career path try to find the vulnerabilities in the cyber system to get its authority. If he or she succeeds in it then he or she gets its illegal authority. Individuals in the ethical hacker career path then steal information or delete the file that could affect the business, functioning, or services of the organization.

GIS officer work on various GIS software to conduct a study and gather spatial and non-spatial information. GIS experts update the GIS data and maintain it. The databases include aerial or satellite imagery, latitudinal and longitudinal coordinates, and manually digitized images of maps. In a career as GIS expert, one is responsible for creating online and mobile maps.

Data Analyst

The invention of the database has given fresh breath to the people involved in the data analytics career path. Analysis refers to splitting up a whole into its individual components for individual analysis. Data analysis is a method through which raw data are processed and transformed into information that would be beneficial for user strategic thinking.

Data are collected and examined to respond to questions, evaluate hypotheses or contradict theories. It is a tool for analyzing, transforming, modeling, and arranging data with useful knowledge, to assist in decision-making and methods, encompassing various strategies, and is used in different fields of business, research, and social science.

Geothermal Engineer

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Database Architect

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Remote Sensing Technician

Individuals who opt for a career as a remote sensing technician possess unique personalities. Remote sensing analysts seem to be rational human beings, they are strong, independent, persistent, sincere, realistic and resourceful. Some of them are analytical as well, which means they are intelligent, introspective and inquisitive. 

Remote sensing scientists use remote sensing technology to support scientists in fields such as community planning, flight planning or the management of natural resources. Analysing data collected from aircraft, satellites or ground-based platforms using statistical analysis software, image analysis software or Geographic Information Systems (GIS) is a significant part of their work. Do you want to learn how to become remote sensing technician? There's no need to be concerned; we've devised a simple remote sensing technician career path for you. Scroll through the pages and read.

Budget Analyst

Budget analysis, in a nutshell, entails thoroughly analyzing the details of a financial budget. The budget analysis aims to better understand and manage revenue. Budget analysts assist in the achievement of financial targets, the preservation of profitability, and the pursuit of long-term growth for a business. Budget analysts generally have a bachelor's degree in accounting, finance, economics, or a closely related field. Knowledge of Financial Management is of prime importance in this career.

Underwriter

An underwriter is a person who assesses and evaluates the risk of insurance in his or her field like mortgage, loan, health policy, investment, and so on and so forth. The underwriter career path does involve risks as analysing the risks means finding out if there is a way for the insurance underwriter jobs to recover the money from its clients. If the risk turns out to be too much for the company then in the future it is an underwriter who will be held accountable for it. Therefore, one must carry out his or her job with a lot of attention and diligence.

Finance Executive

Product manager.

A Product Manager is a professional responsible for product planning and marketing. He or she manages the product throughout the Product Life Cycle, gathering and prioritising the product. A product manager job description includes defining the product vision and working closely with team members of other departments to deliver winning products.  

Operations Manager

Individuals in the operations manager jobs are responsible for ensuring the efficiency of each department to acquire its optimal goal. They plan the use of resources and distribution of materials. The operations manager's job description includes managing budgets, negotiating contracts, and performing administrative tasks.

Stock Analyst

Individuals who opt for a career as a stock analyst examine the company's investments makes decisions and keep track of financial securities. The nature of such investments will differ from one business to the next. Individuals in the stock analyst career use data mining to forecast a company's profits and revenues, advise clients on whether to buy or sell, participate in seminars, and discussing financial matters with executives and evaluate annual reports.

A Researcher is a professional who is responsible for collecting data and information by reviewing the literature and conducting experiments and surveys. He or she uses various methodological processes to provide accurate data and information that is utilised by academicians and other industry professionals. Here, we will discuss what is a researcher, the researcher's salary, types of researchers.

Welding Engineer

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Transportation Planner

A career as Transportation Planner requires technical application of science and technology in engineering, particularly the concepts, equipment and technologies involved in the production of products and services. In fields like land use, infrastructure review, ecological standards and street design, he or she considers issues of health, environment and performance. A Transportation Planner assigns resources for implementing and designing programmes. He or she is responsible for assessing needs, preparing plans and forecasts and compliance with regulations.

Environmental Engineer

Individuals who opt for a career as an environmental engineer are construction professionals who utilise the skills and knowledge of biology, soil science, chemistry and the concept of engineering to design and develop projects that serve as solutions to various environmental problems. 

Safety Manager

A Safety Manager is a professional responsible for employee’s safety at work. He or she plans, implements and oversees the company’s employee safety. A Safety Manager ensures compliance and adherence to Occupational Health and Safety (OHS) guidelines.

Conservation Architect

A Conservation Architect is a professional responsible for conserving and restoring buildings or monuments having a historic value. He or she applies techniques to document and stabilise the object’s state without any further damage. A Conservation Architect restores the monuments and heritage buildings to bring them back to their original state.

Structural Engineer

A Structural Engineer designs buildings, bridges, and other related structures. He or she analyzes the structures and makes sure the structures are strong enough to be used by the people. A career as a Structural Engineer requires working in the construction process. It comes under the civil engineering discipline. A Structure Engineer creates structural models with the help of computer-aided design software. 

Highway Engineer

Highway Engineer Job Description:  A Highway Engineer is a civil engineer who specialises in planning and building thousands of miles of roads that support connectivity and allow transportation across the country. He or she ensures that traffic management schemes are effectively planned concerning economic sustainability and successful implementation.

Field Surveyor

Are you searching for a Field Surveyor Job Description? A Field Surveyor is a professional responsible for conducting field surveys for various places or geographical conditions. He or she collects the required data and information as per the instructions given by senior officials. 

Orthotist and Prosthetist

Orthotists and Prosthetists are professionals who provide aid to patients with disabilities. They fix them to artificial limbs (prosthetics) and help them to regain stability. There are times when people lose their limbs in an accident. In some other occasions, they are born without a limb or orthopaedic impairment. Orthotists and prosthetists play a crucial role in their lives with fixing them to assistive devices and provide mobility.

Pathologist

A career in pathology in India is filled with several responsibilities as it is a medical branch and affects human lives. The demand for pathologists has been increasing over the past few years as people are getting more aware of different diseases. Not only that, but an increase in population and lifestyle changes have also contributed to the increase in a pathologist’s demand. The pathology careers provide an extremely huge number of opportunities and if you want to be a part of the medical field you can consider being a pathologist. If you want to know more about a career in pathology in India then continue reading this article.

Veterinary Doctor

Speech therapist, gynaecologist.

Gynaecology can be defined as the study of the female body. The job outlook for gynaecology is excellent since there is evergreen demand for one because of their responsibility of dealing with not only women’s health but also fertility and pregnancy issues. Although most women prefer to have a women obstetrician gynaecologist as their doctor, men also explore a career as a gynaecologist and there are ample amounts of male doctors in the field who are gynaecologists and aid women during delivery and childbirth. 

Audiologist

The audiologist career involves audiology professionals who are responsible to treat hearing loss and proactively preventing the relevant damage. Individuals who opt for a career as an audiologist use various testing strategies with the aim to determine if someone has a normal sensitivity to sounds or not. After the identification of hearing loss, a hearing doctor is required to determine which sections of the hearing are affected, to what extent they are affected, and where the wound causing the hearing loss is found. As soon as the hearing loss is identified, the patients are provided with recommendations for interventions and rehabilitation such as hearing aids, cochlear implants, and appropriate medical referrals. While audiology is a branch of science that studies and researches hearing, balance, and related disorders.

An oncologist is a specialised doctor responsible for providing medical care to patients diagnosed with cancer. He or she uses several therapies to control the cancer and its effect on the human body such as chemotherapy, immunotherapy, radiation therapy and biopsy. An oncologist designs a treatment plan based on a pathology report after diagnosing the type of cancer and where it is spreading inside the body.

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Is Money Really the Best Measure of Value?

If we want a more equitable world, then we need to consider the different ways people value money.

April 03, 2024

While some economic theories might assert that one dollar is in fact worth one dollar, Mohammad Akbarpour says this overlooks an important fact: Different people value money differently.

“How to allocate scarce resources and who should get what and why is the fundamental question of economic sciences,” says Akbarpour , who is an associate professor of economics at Stanford Graduate School of Business. In a free market, money plays a central role in answering that question, but as Akbarpour discusses in this episode of If/Then: Business, Leadership, Society , if we want a more equitable world, then we need to consider the different ways people value money.

Much of Akbarpour’s research has explored economic scenarios where wealth inequality presents an impediment to market maximization. One example is ride-sharing in Chicago, where Akbarpour identified systematic income disparities at play between an app’s riders and drivers, as well as among the riders themselves. Because riders in the city’s south side tend to be less affluent than those in the north, market-based pricing incentivizes drivers to concentrate in wealthy areas where riders can afford surge prices, leaving less affluent riders with less access to transportation.

Instead of allowing market forces to determine the cost of fares at a one-size-fits-all rate, Akbarpour argues for tailoring pricing based on income levels and people’s marginal value for money. “Once we believe in this one assumption and add it to the classic models, then we can ask the question of how to allocate scarce resources,” Akbarpour says. “If you care about the utility of these people too, then a policy that increases prices here and decreases prices there can start making sense.”

As Akbarpour explores in this episode of If/Then , creating a more equitable world requires that we challenge our prevailing assumptions about money and the value that people place on it.

Senior Editor, Stanford GSB

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If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.

Full Transcript

Note: Transcripts are generated by machine and lightly edited by humans. They may contain errors.

Kevin Cool: If we want a more equitable world then we need to consider the different ways people value money.

Aziz: I like it because I can work whenever I like. I’m not a morning person. I used to be a cab driver for five years, and the car was sitting in the garage so I decided just to do Uber with my car. It’s just sitting there.

Kevin Cool: Meet Aziz. He’s an Uber driver in Chicago. Driving his red Toyota Yaris around the city most afternoons and evenings, and he’s been doing it a long time.

Aziz: I start 2013 so it’s almost 10 years.

Kevin Cool: Aziz has driven more than 20,000 Uber trips in those 10 years.

Aziz : So with Uber you just drive and more relaxing of driving. Not like that stress. Yeah, a lot of cab drivers, they were killed just for 50 bucks, but now, with Uber I don’t carry cash with me. It’s good. Yeah, it’s more safe, and you can drive whenever you are. If it’s busy in the summer I can stay in the summer. With Uber it’s more safe for me.

Kevin Cool: For Aziz, one of the biggest benefits of working for Uber is the control and choice he has. When he works, where he drives and which rides he accepts.

Aziz: So sometimes, I drive to Indiana or Michigan. I have no problems driving around. I drive south, north, west, northeast … the lake.

Kevin Cool: Aziz, like a number of the Uber drivers we met in Chicago, just wants to stay busy keeping the back seat of his car full of passengers for as much time as possible. The more rides with less down time affects what he takes home at the end of the day. Yet all the drivers we spoke to are very aware of the incentive prices for both drivers and passengers like surge pricing for different parts of the city.

Aziz: Now, I said it depends — what do you call it? When it’s busy, full charge, and if it’s not busy, they will get a price. You can make like between 20 bucks per hour until if it’s busy you can reach 30 or 35 per hour. So holidays like Thanksgiving we can do when it’s — only when the weather is bad like snowing it’s like people gave us work so you can make some extra money. It shows here like you are in the summer, and if it’s busy I stay there. Why I have to come to downtown because it’s busy in downtown or the surcharges? Sometimes, it’s like surcharge is very high in the south.

Kevin Cool: Price incentives determine where drivers like Aziz pick up rides, but if the only people who can afford those surge prices are in the wealthier parts of Chicago, is that fair for the people who need cars just as much in poorer neighborhoods on the South Side?

Higher prices are easier to stomach for people with lots of money, but what if these incentives could also help people who value money differently? It may sound simple, but it’s not something that conventional economics usually takes into account.

I’m Kevin Cool, Senior Editor at the GSB. Today, we explore the differences in how people value money and how those differences affect market dynamics with Mohammad Akbarpour, associate professor of Economics.

Mohammad Akbarpour: Really, one of the most fundamental questions of economics I try to answer in the project of economics is how to allocate scarce resources. If you read the classics like, “The Wealth of Nations,” the Karl Marx books from left and right this question of how to allocate the scarce resources, and who should get what, and why is a fundamental question of economic sciences.

And the most accepted, widely-recognized answer to this question is the market mechanism. It’s the free market. So if someone is willing to pay more than me for the good they have to get it. So let’s find the market-clearing price, the price at which the supply of something is equal to the demand and let the market work.

What we did in this paper was really to ask the very same question with one extra assumption. And the extra assumption was: different people have different marginal value for money. The whole idea of Econ 101 when you have supply curve, and demand curve, and the intersection of supply and demand curve will give you the market equilibrium, and that’s the point that the total value is maximized. That’s a picture that pretty much everyone who has taken one class in Economics has seen.

That idea that market equilibrium maximizes the total value, total surplus, or even total welfare comes from the belief that getting one dollar from me, and giving it to Elon Musk, is welfare-neutral. That one dollar has the same value for Elon Musk or Mohammad.

If we do not believe in this, which I do find an uncontroversial assumption, although we can talk about that like there is a fundamental philosophical critique to this assumption, if we believe that different people have different marginal values for cash then we should immediately believe that if you’re willing to pay more for something, that does not mean that the social welfare is maximized for giving a good to you. Because it could be that you are rich.

Once we believe in this one assumption and add it to the classic models, then we can ask the question of how to allocate the scarce resources in this way. And it turns out that with that one assumption, we can identify conditions under which free market remains efficient, and optimal, and fair, but that’s not always the case.

There would be many, many cases in which you want to start using non-market allocation mechanisms. And by non-market allocation mechanisms I mean things such as rationing, running a lottery, people waiting in the queue, and allocating the good for free like the allocation of vaccines.

Kevin Cool: So I want to ask you about a few examples in which this plays out, but the one I want to start with is Taylor Swift. I understand you just recently went to a Taylor Swift concert. Is that right?

Mohammad Akbarpour: Yeah, that’s right. I did not plan to, but I had a free ticket.

Kevin Cool: So you didn’t have to make the decision about how much it was, quote, unquote, worth, right? Yeah, but this does seem like a place where the free market failed or at least was flawed. There were some people who paid 70 times the face value. Seven-zero times the face value for a ticket. And, of course, legions of fans who were priced out and were angry about that. I know it’s just concert tickets, but what can we learn from these exorbitant prices and the calls for change that resulted?

Mohammad Akbarpour: Well, I should start by saying that this is really difficult problem. As we are sitting here multiple economists are thinking about the problem of ticket allocation because it’s a really difficult problem. So everything starts by this observation that if Taylor Swift concert tickets are allocated completely by some competitive equilibrium or free markets, then people who are going to be able to go to this concert are not necessarily people who love Taylor Swift the most.

This is again, should be uncontroversial. In fact, that’s the reason that Taylor Swift has started Very Fine Fans. And saying that if you are a Very Fine Fan now you can get the ticket before other people at lower prices. This is also the case for say, WorkUP. Whoever is happy to wake up at 5:00 a.m. and be the first person who signs in, in that website can get it.

FIFA for the World Cup decided that, “We are going to allocate tickets by lottery.” So everyone puts their name down for a hundred-dollar ticket, and then, “We are going to allocate it with lottery and 10 percent of people are going to get it.” These are all allocation mechanisms that Econ 101, the supply and demand curve, would tell you they are wrong. There is someone who was willing to pay more for this ticket, and you did not give the ticket to them.

And yet, policymakers do that, and in this paper, if you like, in this sequence of papers and research agenda that I started with my fantastic co-authors, Piotr Dworczak and Scott Kominers basically, our idea was people are doing it out there in the world. Some economists think that that is wrong. Could we actually make sense of this policy decision based on economic principles? Based on first principles.

And we could do that by just adding one feature to the model which is different people have different marginal value for money. So if someone is willing to pay $1,000 for a Taylor Swift concert they do not necessarily get more value from going to Taylor Swift concert than someone who is willing to pay $500.

Kevin Cool: Another example. A lot of the people who went to these concerts probably arrived in a Lyft or an Uber. And you’ve done some work looking at ride-sharing companies and how those mechanisms or how the market works in that. First of all, what is wrong with that market that needs to be fixed, and what would you propose as a remedy?

Mohammad Akbarpour: One thing that we discovered in the mathematics of the model was that there are two different types of inequality that can change the way you regulate a market. One type of inequality is the inequality across two sides of the market. In the Uber example that you just said or Lyft example, drivers are systematically poorer than riders.

That’s a fact that you can look at their tax returns. It’s clear that the typical Uber passenger is, on average, more well-off than a typical Uber driver. So that’s what we call the cross-saving equality. The other type of inequality is with inside inequality. Within riders. Some riders are rich, some riders are poor.

And these two different types of inequality give rise to two different policies or different types of policy outcomes. Within the framework of your question, drivers are systematically poorer than riders. And then, if you go to Chicago, riders of South Side Chicago are actually much poorer than riders of Lincoln Park, which is a much more well-off neighborhood.

And then when we take that observation that’s like basically, distribution of marginal values for cash which comes from the distribution of inequality into the model we will see that policies such as increased prices under Lincoln Park, because passengers are much less price-sensitive, and decreased prices on the South Side because passengers are very price-sensitive. And, in fact, you might even start getting negative revenue on the South Side. It doesn’t make sense for you to have business there. But if you have some redistributive goal, if you care about the utility of these people, too, then a policy that increases prices here and decreases prices here can start making sense.

Another policy that can start making sense is to detach the price of drivers and passengers. Instead of saying that the price is $100, and I’m going to get 40 percent of it as Uber as the platform you can set a higher price for riders, a lower price for drivers you will generate some revenue that is more than what you could do otherwise because now, you can charge riders much more. And then, you can use that revenue to give drivers benefits like such as health insurance and stuff like that as part of their compensation.

And I should emphasize, these are policies that are optimal if you are a social planner thinking about welfare, or a regulator who wants to actually maximize welfare. From an Uber perspective, if their only objective is revenue then it’s unclear that this is a good policy.

But I believe and working with different companies, I believe that even companies, even if it’s only about their own long term stock value, they do care about consumer welfare. They do care about actually creating a great PR, making sure that they are a company known as a good company. And in that case, if they want to help drivers this is the way they can do that.

Kevin Cool: You’re listening to “ If/Then ,” a podcast from Stanford Graduate School of Business. We’ll continue our conversation after the break.

[Music plays]

Kevin Cool: So you’re making an economic argument here, but it seems to me that it’s possible that someone would interpret this as a political argument. It’s redistributing money in a way from the rich to the poor. Have you had any pushback on that in that regard?

Mohammad Akbarpour: A lot of pushback. The very first few economists whom I really appreciate we talked about this idea, they were like very much against it because of several reasons. And let me actually get into some of the detail.

The first reason is what we are doing here is what a classic economist would call an interpersonal utility comparison, which means I’m saying that if I give one dollar to you versus one dollar to me this will generate more utility in your brain. This is going to give you more happiness than if I give it to Elon Musk.

I’m basically making a comparison of what happens in your brain. There is no reason to believe that actually, maybe Elon Musk is still as happier with getting one dollar than you. How do I know that? This is a really subtle philosophical critique. That’s why economists historically were really against interpersonal utility comparison. They were like, “The only thing we can observe is willingness to pay. How much you’re willing to pay for this tea. And if you are willing to pay more you probably enjoy it more.”

Kevin Cool: So the market is determining what happens?

Mohammad Akbarpour: Exactly.

Kevin Cool: Yeah, right.

Mohammad Akbarpour: So we are here in this paper, we are making these sequence of papers. We are making interpersonal utility comparisons. We are saying, “No, one dollar for an average American is more valuable than one dollar for Elon Musk,” and we are happy to take that stand.

The second critique, which is much more fundamental, is economists are actually not against redistribution. They believe — or at least some economists, I would call them market fundamentalists — they believe that the right way to do a distribution is through the tax system. It’s not through redistribution through markets that we do. It’s not distorting markets or that we suggest that it is sometimes optimal.

They say, “Let the markets work. If you want to actually have the poor tax the rich, and then redistribute using all kinds of redistributive policies from lump sum transfer, to free insurance, to free school.” All the social and welfare systems that we have in the United States and everywhere in the world.

What we’re doing in the very first part of our very first paper in this agenda is to actually debunk this by showing that if people have private information about how much they value something, if I know that the value of this concert ticket or value of this cancer treatment for me is a million dollars, but you don’t know that as the market-maker or as the regulator, then we show that actually, this result that the optimal path is to let the market work and redistribute. And we argue that this is a private information in pretty much any market. You really don’t know how much someone values a piece of vaccine, a dose of vaccine, or a cancer treatment, or a Taylor Swift concert.

Second argument is yes, it’s amazing if we could have an optimal tax system, but that’s really a political outcome. Can we really control the whole tax system? Like Democrats have an ideal tax point. Republicans have a different ideal tax point, and we can never be at the optimal tax system which makes distorting markets irrelevant.

So what we do here is to say, “Hey, we cannot change the tax system in short term or medium term, so let’s take that as given. And then given the tax system, how should we design a market? How should we allocate public housing? How should we allocate healthcare? How should we allocate even concert tickets?” And then, we can identify conditions under which market distortion makes sense.

Kevin Cool: Is one of the goals of your research to help solve inequality? And do you think more economists should be pursuing research with that goal in mind?

Mohammad Akbarpour: They say academia is the opposite of the military. Military people do what you tell them and academia people do not listen to anyone. So I cannot really tell what economists should work on. I think what we are doing is alleviating the problem of inequality. Solving the problem of inequality really comes at a macro level. That’s my view that you have to have the government and society who believes, “I don’t want to live in a society that’s extremely unequal.”

And then, the tax system, the welfare system is going to take care of that. So the reason that Scandinavia is a much more equal country than United States is not because of market distortions. It’s because the society as a whole and the government has decided, “We want to have a really, really progressive tax system.”

That doesn’t mean that Scandinavia is in a better situation than United States. That’s really a choice. A social choice of a society. Maybe in America we love to have a country that accepts some high-level of inequality in the name of innovation and growth. That’s a separate question.

So I think solving inequality comes at that level so what we’re doing in this paper is to take inequality as given, and then think about the question of, “How can you alleviate this problem that inequality exists through tools that you have in the market?” And it turns out that what we find is that for most of the day-to-day goods, for yogurt, for oat milk, for a car you actually don’t want to have market distortions.

The paper and this agenda mathematically we prove, and then we can look at data as well, that you want to start having market distortions for goods in which people do not have a huge valuation in their taste. So the social planner kind of knows, the regulator knows that the value of one dose of vaccine for different people with the same observables cannot be that massively different.

A better example is cancer treatment. If you and I both have some kind of cancer, probably both of us would like to get the best treatment equally. There is no reason for me to love my life significantly more than you. So if someone is willing to pay a million dollars for a cancer treatment and someone is willing to pay $10,000 for the cancer treatment I would argue most of the difference comes from the fact that the first one is much richer. It’s a budget constraint more than an actual value.

And the paper says for these types of goods, goods in which variation and willingness to pay can be mostly explained by variation in wealth. You want to have non-market mechanisms. So we are not solving the problem of inequality, but we are alleviating this problem for these types of goods that we refer to as essential goods.

Kevin Cool: Are you optimistic that policymakers, regulators could be persuaded that we have tools to make markets more fair or that that should happen?

Mohammad Akbarpour: I think it’s to some extent already happening in a lot of places. So one in every 10 almost houses in New York City are public houses. This is a redistributive program. Fifty percent of Amsterdam housing is public so we are already seeing this happening in practice.

What I’m optimistic we are going to do more and more with more data and more analysis is that policymakers and regulators start thinking about this problem more rigorously and identify the best policies instead of just some policy that we think might work.

Kevin Cool: What drew you to first of all, become an economist and to this research in particular?

Mohammad Akbarpour: The economics really came from the fact that I always loved mathematics, and I also loved looking at humans. Reading novels. Thinking about psychology. “Brothers Karamazov” was my favorite novel, and I realized that economics is somehow a great mix of thinking about humans and mathematics.

I came to Stanford University as a PhD student in the School of Engineering. And then, I got a few economics classes, and I fell in love with economics, and then I switched to economics. So that’s how it really all started for me thinking about economics.

This particular research I was uncomfortable by this assumption. From day one I saw it. This fact that the whole economics builds on the fact that moving one dollar from A to B or at least the whole Econ 101 is welfare-neutral. And coming from Iran I was kind of in the middle class myself, but I had a lot of family members in a really small city five hours away from the capital who are really, really poor.

And it was so clear that one dollar to them is significantly different than one dollar to people that I was surrounded with in Tehran in my university. So all of those really existed in my brain and I was uncomfortable with this question. And then, with my two fantastic co-authors they had different personal experiences and we were talking about these topics.

And we were like, “Do we want to commit the crime and do interpersonal utility comparison?” And we wrote the papers. I do remember that when I told this to one of my friends who is also an economist he was like, “I think with probability five percent this paper is going to start a whole new way of thinking. And with probability 95 percent people are going to laugh at you.” And I was like, “I will take that bet.”

Kevin Cool: You’ll take the five percent?

Mohammad Akbarpour: Yeah.

Kevin Cool: Yeah.

Mohammad Akbarpour: I will take the five percent. Life is too short to get the risk-less papers.

Kevin Cool: “ If/Then ” is produced by Jesse Baker and Eric Nuzum of Magnificent Noise for Stanford Graduate School of Business. Our show is produced by Jim Colgan and Julia Natt. Mixing and sound design by Kristin Mueller. From Stanford GSB, Jenny Luna, Sorel Husbands Denholtz, and Elizabeth Wyleczuk-Stern.

If you enjoyed this conversation we’d appreciate you sharing this with others who might be interested and hope you’ll try some of the other episodes in this series. For more on our professors and their research or to discover more podcasts coming out of Stanford GSB visit our website at gsb.stanford.edu. Find more on our YouTube channel. You can follow us on social media at StanfordGSB. I’m Kevin Cool.

For media inquiries, visit the Newsroom .

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Essays About Money: Top 5 Examples and 6 Prompts

With money comes great power; however, power must always come with responsibility. Discover thought-provoking essays about money in our guide.

Money is everywhere. We use it to eat, drink, clothe ourselves, and get shelter, among many other uses. Nowadays, it is an undisputed fact that “money makes the world go round.” The earliest known form of money dates back to around 5,000 years ago ; trade was previously carried out using a barter system. However, over the centuries, more and more nations began implementing a currency system, and money has become more critical. 

In the contemporary world, it seems to be “all about money.” However, it is important not to lose sight of what is important; we must maintain good physical and mental health and healthy relationships with the people around us. Money is necessary; it is just not the only thing necessary. To start your essay, read these examples to write insightful essays about money. 

5 Top Examples On Essay About Money

1. essay on money by prasanna, 2. how money changed human history by jacob wilkins, 3. capitalism: money that make money by ernestine montgomery, 4.  is money the most important thing by seth higgins.

• 5. ​​An Introduction to Saving Money by Jeremy Vohwinkle

Writing Prompts For Essays About Money

1. good uses for money, 2. the “dark side” of money, 3. money’s role in history, 4. morality vs. money, 5. can money buy happiness, 6. how to save money.

“Imagine the world without money. We will eventually come to a point where we will be asking questions like “what’s the point of life”. Hope and goals are some of the important things that will keep a man going in life. Without any sense of achievement or motivation, there wouldn’t be any inventions or progress in the world. People work to get money and then people work harder to get more money. This cycle of life that keeps a man motivated and hopeful is one of the biggest advantages of the system of money”

This essay gives readers a general outlook on money and its advantages and disadvantages. It gives people equal opportunity to work for their dreams and motivates them to be productive members of society, while it also raises the question of greed. Money, without a doubt, has its positive and negative aspects, but it exists and is only becoming more critical.

“But the barter economy was flawed. There was no universal measure for determining the value of an item. It was all based on the subjective opinion of the individuals involved. And to make matters worse, the barter economy relied on both sides wanting something the other had to offer. Trade, therefore, could be sluggish and frustrating. Human beings needed something different, and money was the answer.”

Wilkins writes about how money revolutionized the way trade was conducted. The barter system involved trading any objects if both parties agreed to a deal, such as trading animal skins for fish or medicine for timber. However, the only measure of an item’s value was how much one party wanted it- both sides needed to have something the other wanted. The introduction of money allowed people to put a solid value on commodities, making trade easier.  

“So, if you were to closely observe the dirty, disordered canvas of economic progress during the 20th and 21 st century, you should conclude that, for all its warts, capitalism has been the winner. It has sometimes caused pain; suffered from serious cycles; and often needed the clout of the state- such as we have seen from September 2008. It has also been quite resistant to sensible regulation. Even so, the basic institutions of capitalism have worked, not just in the US and the OECD (Organization for Economic Co-operation and development) nations, but also many developing countries, of which India is one.”

Albeit lengthy, Montgomery’s essay discusses the debate between socialism and capitalism, a topic of which money is at the core. Montgomery describes Karl Marx’s criticism of capitalism: all the money goes to a few people, not the workers. She believes these are valid to an extent and criticizes certain forms of capitalism and socialism. Neither capitalism nor socialism is perfect, but according to Montgomery, capitalism creates a better economy. 

“Being the richest man in the world does not mean you are the happiest man in the world, although money can buy you happiness sometimes, but not always. If we could all appreciate the way life is, the fun, and the beauty I think the world would be better. If people weren’t power hungry maybe we’d have a lesser demand for money. Those people who is money hungry and power hungry need to relax. Money can’t buy you happiness. These individuals need to understand that.”

Higgins implores readers to remember that money is not the only thing people need in the world. He stresses the necessity of money, as it is used to pay for various necessary goods and services; however, he believes it is not a prerequisite for happiness. Material things are temporary, and there are other things we should focus on, like family and friends. 

5. ​​ An Introduction to Saving Money by Jeremy Vohwinkle

“A financial emergency may take the form of a job loss, significant medical or dental expense, unexpected home or auto repairs, a hurricane or major storm, or something unthinkable, such as a global pandemic. The last thing you want to do is to rely on credit cards with their hefty interest fees or to be forced to take out a loan. That’s where your emergency fund can come in handy. Historically, the formula for an emergency account is to have enough readily available cash to cover three to six months of living expenses.“

Vohwinkle’s essay gives readers some suggestions on how to save more money. Most importantly, he suggests setting up an emergency fund, as all other saving techniques stem from there. He also suggests creating an automatic savings plan and cutting down on “spending leaks,” like buying coffee. You might also be interested in these essays about celebration .

In this essay, write about why money is necessary and the ways to use it for the greater good, and include ways in which it can be used (investing, donating, etc.). For each point, you make, be sure to explain why. Of course, this is entirely subjective; feel free to write about what you consider “good uses” for money. 

On the other hand, money also has a negative side —research on money-related issues, such as taxpayer-funded corruption and trading of illegal goods. In your essay, explore this side of money and perhaps give solutions on how to stop these problems. 

Money has played a progressively more important role throughout human history. Discuss the development of currency and the economy, from the barter system to the digital world we live in today. You need not go too in-depth, as there is a lot of ground to cover and many eras to research. Be sure to cite reputable sources when discussing history. 

Many people warn of “selling your soul” for financial gain. In your essay, you can write about the importance of having solid values in this day and age, where money reigns supreme. What principles do you need to keep in mind? Explain how you can still value money while staying grounded; mention the balance between material needs and others. 

As stated in Higgins’ essay, more people have begun to prioritize money over all else. Do you believe that money is truly the most important thing? Can it alone make you happy? Discuss both sides of this question and choose your position accordingly. Be sure to provide precise supporting details for a stronger argument. 

Enumerate tips on how you can save money. Anything works, from saving certain things for special occasions to buying more food in the grocery rather than eating out. This is your opinion; however, feel free to consult online sources and the people around you for extra advice. 

For help with your essays, check out our round-up of the best essay checkers .If you’re still stuck, check out our general resource of essay writing topics .

Martin is an avid writer specializing in editing and proofreading. He also enjoys literary analysis and writing about food and travel.

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Essay On Money: 100, 250 Words Samples

• Updated on  
• Nov 9, 2023

Why do you think money is important? Can we live without money? Does money have its own value? What’s the difference between hard money and digital money? When we plan on buying something, we have to pay a certain amount. Let’s say you want to buy a wristwatch worth $50. How do you compare that commodity with money? Do they have equal value? Is there any authority that states the value of money ? These and several other questions about money can make one wonder why money is given so much importance. Let’s go in-depth with an essay on money and find answers to all these questions.

This Blog Includes:

What is money, why is money so important, essay on money in 100 words, essay on money in 250 words.

Also Read: Essay on Chandrayaan – 3

According to Wikipedia and Oxford Dictionary, Money is simply a medium of exchange. Some even consider money as one of the most important resources , which is used to make transactions of goods, services, or repayment of debts within a specific country or socio-economic context.

Money can have various forms, coins and banknotes in physical form, and electronic balances in bank accounts in digital forms. Money serves as a unit of account, facilitating the measurement of value in terms of prices, and as a store of value, allowing individuals to save purchasing power for future use.

Learn Why Financial Literacy is Important for Students.

What makes money such an important resource is its acceptance across the globe in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. Here are several reasons stating the importance of money.

• Money serves as a convenient medium of exchange that facilitates the buying and selling of goods and services, making transactions more efficient than barter systems.
• It provides a standardized unit for measuring the value of goods, services, and assets, allowing for easier comparison and assessment of value across different items.
• Money enables individuals and businesses to store wealth and purchasing power over time, facilitating savings and investment for future needs and goals.
• A stable and reliable monetary system encourages investment, trade, and economic growth, fostering overall prosperity within an economy.
• By using money, individuals and businesses can avoid the high transaction costs associated with bartering and the inefficiencies of non-monetary exchange systems.
• The use of money encourages specialization in the production of goods and services, leading to increased productivity and efficiency within an economy.
• Money is essential for the functioning of financial markets, banking systems, and investment activities, which are crucial for the allocation of resources and capital within an economy.

Also Read: Essay on National Unity Day 

El dinero or money is used as a medium of exchange, unit of account, and store of value. It facilitates trade, allowing for the smooth exchange of goods and services, while also enabling efficient allocation of resources and encouraging economic growth. As a unit of account, it provides a standardized measure of value, simplifying the comparison of different goods and assets. 

Moreover, money acts as a store of value, allowing individuals to save and plan for the future. Its role in reducing transaction costs, enabling specialization, and supporting complex financial activities highlights its significance in the functioning of contemporary economies.

Modern economics is heavily dependent on money or we can say that money is the pillar of modern economies. As a medium of exchange, it simplifies trade by providing a universally accepted method of payment for goods and services, eliminating the inefficiencies and limitations of barter systems. Its characteristic fosters the development of complex market systems, encouraging specialization and the efficient allocation of resources.

Apart from being a medium of exchange, money functions as a unit of account, providing a standardized measure of value that enables individuals to compare prices and evaluate the worth of different goods and services. This uniformity in valuation streamlines commercial activities and allows for effective planning and decision-making in both personal and business contexts.

Money serves as a store of value, allowing individuals to save and accumulate wealth over time. This feature empowers people to prepare for future expenses, emergencies, or long-term goals, providing a sense of security and stability in an uncertain world.

In addition to its role in daily transactions , money fuels economic growth by facilitating investment, entrepreneurship, and innovation. Financial institutions utilize money as a tool to allocate capital efficiently, enabling the development of new businesses, industries, and technologies that contribute to overall economic prosperity.

Money plays multiple roles in our lives; it is a physical or digital representation of currency; it is a fundamental pillar of modern economies, underpinning the intricate web of commercial activities, financial systems, and societal well-being. Its importance lies not only in its tangible properties but also in the complex functions and structures it supports within the global economic framework.

Money is globally accepted as a medium of exchange in multiple transactions and services. From serving as a medium of exchange to facilitating financial activities, the importance of money goes beyond our everyday needs. To buy goods or services, you are required to pay a certain amount, which is fulfilled by paying money. 

To write an essay on money, you need to highlight the key aspects of this essential resource. The multiple transactions in which money is used in our day-to-day lives make money an important part of our lives. Give examples of how money can change our lives and what would happen if we were out of money. Highlight the latest trends in the financial sector and what governments are doing to save our money from inflation. 

Here are the 5 strongest currencies in the world: Kuwait Dinar (KWD), Bahraini Dinar (BHD), Omani Rial (OMR), Jordanian Dinar (JOD), and Gibraltar Pound (GIP).

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Shiva Tyagi

With an experience of over a year, I've developed a passion for writing blogs on wide range of topics. I am mostly inspired from topics related to social and environmental fields, where you come up with a positive outcome.

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Essay on Money: Meaning, Functions and Role

Read this essay to learn about the meaning, functions and role of money.

Meaning of Money:

Money has been defined differently by different economists. Some, like F.A. Walker, define it in terms of its functions, while others like G.D.H. Cole, J.M. Keynes, Seligman and D.H. Robertson lay stress on the ‘general acceptability’ aspect of money.

According to Prof. D.H. Robertson, “anything which is widely accepted in payment for goods or in discharge of other kinds of business obligation, is called money.” Seligman defines money as “one thing that possesses general acceptability.” Prof. Ely says: “Money is anything that passes freely from hand to hand as a medium of exchange and is generally received in final discharge of debts.”

Prof. A. Walker says “Money is that money does.” But these definitions are defective because they do not lay proper emphasis on all the essential functions of money. Prof. Crowther’s definition of money is considered better as it takes into account all the important functions of money. He defines money as “anything that is generally acceptable as a means of exchange (i.e., as a means of setting debts) and at the same lime, acts as a measure and a store of value.”

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It is a fact that although money was the first economic object to attract men’s thoughtful attention…there is at the present day not even an approximate agreement as to what ought to be designated by the world…the business world makes use of the term in several senses; while amongst economists there are almost as many different conceptions as there are writers on the subject.’

Functions of Money :

Money is a matter of functions four, a medium, a measure, a standard, a store.

Money in a modern economy performs important functions which have been classified by Kinley as follows:

(a) Primary functions also called fundamental and original functions like the medium of exchange and measure of value.

(b) Secondary functions like standard of deferred payments, store of value and transfer of value.

(c) Contingent functions like distribution of income, measurement and maximisation of utility etc.

Medium of exchange:

Money serves as a medium of exchange and facilitates the buying and selling of goods, thereby eliminating the need for double coincidence of wants as under barter. A man who wants to sell wheat in exchange for rice can sell it for money and purchase rice.

Measure of value:

Money has also removed the difficulty of barter system by serving as a common measure of value. The values of various commodities are expressed in terms of money. Money as a measure of value has made transactions simple and easy. It may be understood that this function of money follows from the first basic function (medium of exchange). It is because money is used as a medium to exchange goods, that each good gets a value in terms of money (called price). As such, money also serves as a unit of account. In India, the unit of account is the Rupee, in USA, the Dollar; in USSR, the Rouble and the Yen in Japan.

Store of Value:

Classical economists did not recognize the store of value function of money. Keynes laid stress on this function of money. People store money to provide again the rainy day and to meet unforeseen contingencies. According to Keynes, people also store money to take advantage of the changes in the rate of interest. Money as a store preserves value through time and space. Money as a store of value through time means the shifting of purchasing power from the present to the future and as such it serves as an important link between the present and the future.

Money in this case is stored as a form of ‘asset’. Money is an asset or a form of wealth because it is a claim. It is the most convenient way of laying claim to such goods and services as one wishes to buy. Thus, rather than keeping their wealth in the form of non-liquid assets like houses, shares, etc., people prefer to keep their wealth in the form of money.

Money is the most liquid of all assets i.e., money can be readily exchanged for goods and services without any difficulty and the price of money or its value is stable at least over a short period. In fact, all assets like bonds, saving accounts, treasury bills, government securities, inventories and real estate do serve as stores of value, but they differ in the degree of liquidity; money amongst these possesses highest degree of liquidity and that is why people prefer it most as a store of value.

However, we should not give it undue importance because the value of money does not remain stable through time. As prices rise, people try to get rid of money as its value falls. Moreover, in modern economies storing wealth in the form of money is unimportant as it is done in the form of interest-bearing securities.

Money as a store of value through space continues to be important; for instance, an Indian businessman who sells his business and property and goes to USA and settles down there is a case of exporting value through space. In ancient times, gold and silver coins were used as a store of value followed by currency notes. In advanced countries today money is stored in the form of bank deposits.

Standard of Deferred Payments:

Money has always been used as a standard of deferred payment. This function of money has attained more importance in modern times with the extension of trade based on credit. As a result of this function, it has become possible to express future payments in terms of money. A borrower who borrows a certain sum in the present undertakes to pay the same in future. Similarly, a person who purchases on credit agrees to pay in future when his bills become due. Money as a standard of deferred payments is performing useful function enabling the current and present transactions to be discharged in future.

Contingent Functions:

Besides, the primary and secondary functions of money, Prof. Kinley lays stress on the contingent functions of money. Money facilitates the distribution of national income among the various factors of production. Land, labour, capital and organization all co-operate in an act of production and the product is the result of their joint efforts, which belongs to all of them.

Money makes the distribution of joint production, amongst various factors easy and paves the way for economic progress. Further, a concept like utility is measured in terms of money. A consumer as well as a producer measures the utilities of different goods and factors of production with the help of money and try to get maximum satisfaction or maximum returns.

Again, credit is the basis of modern economic progress. Money constitutes the basis of credit. Banks create credit not out of thin air but with the help of money. Moreover, money gives liquidity to various forms of wealth. A person by keeping his wealth in the form of money renders it most liquid.

Role of Money:

Money plays a vital role in the determination of income and employment. The basic problems of macroeconomics are the determination of income, output, employment and the general price levels, including the determination of the long-run rate of growth of income. As far as the growth theory is concerned, the supply and demand for money have been largely ignored until recently, yet all but the very simplest short-run income and price level determination models have a money market included in them.

As such, money becomes an economic force in its own right, which under certain circumstances, powerfully affects economic activities. This is the main subject matter of monetary economics. Monetary theory is that branch of economics which aims at discovering and explaining how the use of money in its various forms affects production, consumption and distribution of goods. As a matter of fact, the advocates of monetary theory plead that a large number of factors affect the volume of production, consumption and distribution. To them, money is no more a veil, a medium to facilitate exchange of goods: but something more vital, more crucial and more important, which affects the general level of economic activity.

Monetary theorists hold that the use of money as a medium of exchange, as a store of value, as a measure of value, as a standard of deferred payments along with its contingent functions has the capacity of influencing the volume and direction of economic activity that would not occur in a barter economy. In a monetary economy, according to Keynes, “money plays a part of its own and affects motives and decisions and is, in short, one of the operative factors in the situation, so that the course of events cannot be predicted, either in the long period or in the short, without a knowledge of the behaviour of money between the first state and the last.” In such a world, money is not a neutral phenomenon rather a phenomenon governed by principles very different from those that hold sway over the process of production and exchange.

In modern income and employment analysis, these are two spheres of economic activity. There is, on the one hand, the real or goods sector, which has to do with forces of aggregate demand and supply and the conditions under which an equilibrium of output and employment is achieved. On the other hand, there is the monetary sphere in which the economic forces at work are those centering around the demand for money.

According to the modern view, the existence of a separate monetary sphere of activity is a fact of profound significance; what takes place in the monetary sphere may suddenly and dramatically influence the level of both output and employment. The method by which Keynes brings money into the picture is through the development of a theory of interest in which the demand for money is dominant. The rate of interest is the link between the real sphere and the monetary sphere. It is a factor around which the theory of investment is constructed and investment expenditure is one of the key determinants of income and employment.

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Money Essay | Importance and Benefits of Money Essay in English

Money Essay: Money is a vital wellspring of everyday routine to experience a solid and satisfying life, despite the fact that it can not measure up to adore and mind. Both have their own significance and benefit. We are giving articles on Money to partake in a paper composing contest in basic and basic words here.

Money is the medium utilized by individuals to purchase required labor and products. It is utilized as the source to satisfy fundamental requirements and is additionally a wellspring of solace throughout everyday life. Money is the main source to carry on with a sound and prosperous life; nonetheless, it couldn’t measure up to the meaning of affection and care. Both have their own significance and advantages. By the way, Money is a helpful and important product to live cheerily arranging all your standard liabilities towards your family and friends and family.

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Short Essay on Money 300 Words in English

Money is the fundamental need of life, without which nobody can envision a sound and tranquil life. We need money to satisfy our littlest needs. In present-day times, when progress is growing quickly and everybody is following western culture, in such a period, we need more money because of expanding merchandise. On prior occasions, there was training called trade framework, in which anybody would get another thing in return for a certain something. In any case, presently in this advanced world, just Money is expected to purchase everything or thing. it happens.

These days you need Money for each work, for garments, for food, for a safe house and surprisingly in numerous spots you need to pay for water. Despite the fact that it can likewise be said that ‘Money can’t give joy’s yet would you be able to be content with no Money? Since Money is a major piece of our life, at any rate you need Money to be content.

The significance of Money is expanding step by step, in light of the fact that our living has gotten over the top expensive. The significance of Money has expanded for a huge scope in the fields of creation, utilization, trade, circulation, public income and so on It assumes a vital part in deciding pay, work, continues partnership, general value level and so on On the off chance that we take a gander at the present-day situation, there is no uncertainty that he, who has a lot of riches, is viewed as more cultivated on the planet. Consequently, we can say that Money is vital in each part of life.

Importance of Money

Money is a fundamental thing throughout everyday life. In any case, it can’t accept things like time, love and genuine consideration. It can just satisfy the outer requirements of an individual and not the interior necessities like love. These days, everything has gotten costly yet getting them is vital to carry on with basic life. In the event that we don’t have money, nobody can envision the reality of how our circumstances will be.

The demise of an individual is sure because of the absence of Money and on the off chance that he endures, he experiences to confront numerous difficulties. Abundance empowers us to purchase every one of the essential things and helps us for the duration of our life. In the event that we comprehend the significance of Money throughout everyday life, we won’t ever go through Money with no reason or abuse. We can’t look at Money and love, in light of the fact that to carry on with a fruitful life we ​​need both Money and love.

In this cutthroat world, to bring in Money by finding a decent line of work, everybody needs to concentrate well with advanced education from a notable school or college. An individual needs to bring in more money to satisfy the prerequisite of the relative multitude of individuals in the family, particularly for the individual who is the lone worker in the family.

An individual necessities Money to address the issues of all his relatives to eat, wear, and live. The rich have an uncommon personality and notoriety in the general public, be that as it may, the needy individuals spend their lives just getting two suppers per day. Every one of these progressions and contrasts are because of Money as it were.

In any place where there is a shortage of money in the house, there are a lot of struggles. There are squabbles among a couple. Neither does anybody regard each other in the case of bringing in Money. Neighbors and family members likewise peer downward on the destitute individual. He begins cutting her reasoning that the individual never requests Money from her. With this, nobody needs to get to know a destitute individual in the present time.

Money can neither purchase nor stop time nor purchase genuine romance and care together. Yet at the same time it is needed by all, so life can be taken in the correct way. Despite the fact that Money can’t give time and love, it certainly gives us bliss, certainty, fulfillment, physical and mental harmony. Because of which we can carry on with life effectively and each troublesome issue can be settled.

Advantage from Money

You can carry on with a conscious life: An individual is regarded just when he is monetarily prosperous. Something else, in the present society, the bankrupt individual has no regard.

Unadulterated and nutritious food can be eaten: The individuals who have abundance can appreciate an assortment of heavenly and nutritious dinners. What’s more, they can shield themselves from sicknesses.

Your assurance should be possible: In the present society, burglary, theft have expanded a great deal and rich individuals can give security to themselves because of Money.

The credit is repayable: Obligation taken from an individual rich individual can reimburse the credit without any problem.

The happiness regarding material delights can be achieved: With an adequate measure of riches, all material solaces can be appreciated like taking a decent house, great garments, vehicles and different things.

FAQ’s on Money Essay

Question 1. What is the requirement for money?

Answer: The main capacity of cash is to fill in as a mechanism of trade. As a mechanism of trade, cash addresses every one of the troubles of the deal. There is no need for a twofold fortuitous event of needs in a cash economy.

Question 2. What are the benefits of money?

Answer: Having money with you gives you a respectful life, you can have a healthy and nutritious life, you can pay your loans, have a luxurious life, etc.

Question 3. How can we earn money?

Answer: There are a number of ways to earn money such as;

• You can be an employee in a company
• You can start your own business
• You can be an entrepreneur
• You can use social media channels to provide your service

Essay on Money for Students and Children

500+ words essay on money.

Money is an essential need to survive in the world. In today’s world, almost everything is possible with money. Moreover, you can fulfill any of your dreams by spending money. As a result, people work hard to earn it. Our parents work hard to fulfill our dreams .

Furthermore various businessmen , entrepreneurs have startup businesses to earn profits. They have made use of their skills and intelligence in getting an upper hand in earning. Also, the employee sector works day and night to complete their tasks given to them. But still, there are many people who take shortcuts to success and get involved in corruption.

Black Money

Black money is the money that people earn with corruption . For your information corruption involves the misuse of the power of high posts. For instance, it involves taking bribes, extra money for free services, etc. Corruption is the main cause of the lack of proper growth of the country .

Moreover, money that people having authority earns misusing their powers is black money. Furthermore, these earnings do not have proper documentation. As a result, the people who earn this do not pay income tax . Which is a great offense and the person who does this can be behind bars.

Money Laundering

In simple terms, money laundering is converting black money into white money. Also, this is another illegal offense. Furthermore, money laundering also encourages various crimes. Because it is the only way criminal can use their money from illegal sources. Money laundering is a crime, and the people who practice it are liable to go to jail.

Therefore the Government is taking various preventive measures to abolish money laundering. The government is linking bank accounts to AADHAR Card. To get all the transaction detail of each bank account. As a result, the government comes to know if any transaction is from an illegal source .

Also, every bank account has its own KYC (Know your Customer) this separates different categories of income of people. Businessmen are in the high-risk category. Then comes the people who are on a high post they are in the medium-risk category. Further, the last category is of the Employee sector they are at the lowest risk.

Get the huge list of more than 500 Essay Topics and Ideas

White Money

White money is the money that people earn through legal sources. Moreover, it is the money on which the people have already paid the tax. The employee sector of any company always has white money income.

Because the tax is already levied on their income. Therefore the safest way to earn money is in the employment sector. But your income will be limited here. As a result, many people take a different path and choose entrepreneurship. This helps them in starting their own company and make profitable incomes .

Every person in this world works hard to earn money. People try different methods and set of skills to increase their incomes. But it is always not about earning money, it’s about saving and spending it. People should spend money wisely. Moreover, things should always be bought by judging their worth. Because money is not precious but the efforts you make for it are.

Q1. What is Black Money?

A1. Black money is the money that people earn through illegal ways. It is strictly prohibited in our country. And the people who have it can go to jail.

Q2. What is the difference between Black money and White money?

A2. The difference between black money and white money is, Black money comes from illegal earnings. But white money comes from legal sources with taxation levied on it.

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Essay on Money in English for Children and Students

Table of Contents

Essay on Money: Money is the medium used by people to buy required goods and services. It is used as the source to fulfill basic needs and is also a source of comfort in life. Money is the most important source to live a healthy and prosperous life; however, it cannot be compared with the significance of love and care. Both have their own importance and benefits. Nevertheless, money is a useful and necessary commodity to live contentedly disposing all your usual liabilities towards your family and loved ones.

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Long and Short Essay on Money in English

We have provided some simply written essay on money to help your kids to do better in their essay writing competition.

These Money Essay are written in easy English so that student of any class can easily understand it and also reiterate it or write it down, whenever required.

We have divided following essays under long and short essay on money in English according to the need, to help your kids to do better in their school competitions.

These essay on money will prove useful in your school assignments or general discussion with your family and friends.

Money Essay 1 (100 words)

Money is the most basic requirement of the life without which one cannot fulfill his basic needs and requirements of the daily routine. We can never compare the importance of the money with the importance of love or care. When one need money, love cannot fulfill this requirement and if one need love, money cannot fulfill this requirement.

Both are highly required for the healthy life but they have their significance and importance separately. Both are required by us on urgent basis so we cannot rank both on the same scale. We need money everywhere such as to eat food, to drink water or milk, to see TV, news, subscribe newspaper, wear clothe, get admission and many more requirements.

Money Essay 2 (150 words)

Money is the basic requirement of the life without which one cannot imagine a healthy and peaceful life. We need money even buying a little needle. In the modern time, where growth of civilization is going very fast and following western culture, we need more money because of the increasing prices of everything. Earlier there was a system called barter system in which one was allowed to exchange things to get goods however, in the modern one need only money to buy everything.

The importance of money is increasing day by day as the living has become so costly. The significance of money has increased to a great extent in the field of production, consumption, exchange, distribution, public finance and etc. It plays a very crucial role in determining the input, income, employment, output, general price level of anything, etc.

Money Essay 3 (200 words)

In such a costly and competitive society and world, no one of us can live without money. We need money to fulfil our basic needs of the life such as buying food, and other many basic necessities of life which are almost impossible to buy without money. People in the society who are rich and have property are looked as honourable and respectful person of the society however a poor person is seen as hatred without any good impression.

Money increases the position of the person in the society and gives good impression to him. All of us want to be rich by earning more money through good job or business in order to fulfil all the increasing demands of the modern age. However, only few people get this chance of completing their dreams of being a millionaire.

So, money is the thing of great importance all through the life. Money is required by everyone whether he/she is rich or poor ad living in urban areas or rural areas. People in the urban areas are earning more money than the people living in backward or rural areas as the people of the urban areas have more access to the technologies and get more opportunity because of the easy sources.

Essay on Jan Dhan Yojana

Money Essay 4 (250 words)

Money is very much required thing in the life however; it cannot buy things like time, love and true care. It can only fulfil the outer needs of the person and not the inner needs like true love. Now-a-days, everything has become so costly but necessary to buy for living a simple life. And what if we have no money, either we would die or suffer more if saved.

Money has capability to buy anything virtually and helps us a lot throughout the life. By taking the importance of the money in our life we should never destroy or waste the money without any purpose. We should not compare the money and love because both are required separately to run a successful life.

In this competitive world, everyone wants to get good study with higher education from the popular college and university to get good job in order to earn more money. A person needs more money to fulfil the requirement of the all members of the family especially one who is only working person of the family.

He or she needs to fulfil the eating, clothing and living requirements of the family members and for that money is required. Rich people of the society are given particular recognition and popularity however poor people live their life by arranging just food for two times a day. All the changes and differences are just because of the money.

Money Essay 5 (300 words)

Money is really a very important thing for the human beings to lead their life in the satisfactory way. Unlike animals and plants, we need more money everywhere. In order to live in the society, we need to maintain our status and position in the society for which we need money. In order to eat food or drink water, wear cloth, get admission to the school, take medicine or go to the hospital and other many activities we need lots of money. Now the topic arise is, where we got such required money. We need to get higher level study and do hard works to get good job or open our own business which requires more skill and confidence.

Earlier the condition of poor people was very poor because of the pressure of the rich people. They were not helping the poor people and use them only as a servant on the very low salary. However the condition of the poor people has become good as the rule and regulations of the government as been change in order to equalize the condition of both. Now everyone has equal rights to study higher and get good job. Many people understand that money is the origin of the evil in the mind however I do not think so because thinking is the process of human mind and not the creation of money.

I understand and believe that money is the most important key of happiness gifted by the God. It is the human mind to take anything in different ways. Some people take it only to fulfil their physical needs and they never take it heartily however some people understand everything to the money and they can do anything for getting the money such murder, corruption, underworld work, smuggling, promoting bribe, etc.

Money Essay 6 (400 words)

There is no any doubt that money is so essential for our healthy living. Money is almost everything for us to live a life and maintain the good stats in the society. It is the money which fulfils the need of bringing necessary comforts and amenities of the life. If one has money, he/she can get anything in his/her life. It is the money which helps us in developing good personality, improving confidence, makes us able to creditworthiness, improving capacity, increasing capabilities and enhancing our courage to a great level. Without money we feel helpless and alone in this world where no one is ready to help and assist. In the current materialistic world, money is very important and powerful thing without which one cannot live and survive.

Now-a-days, in order to earn more money in wrong ways, bad people are taking help of corruption, bribe, smuggling, murder rich people of the society, and other callous activities by degrading the moral and ethical values of the humanity. Lazy people follow wrong ways to earn money as they understand that these ways are simple and easy however it is not true. One can earn more money in less time and effort but not for long; surely he would be lost in the near future as he is following wrong and weak way. The people who are earning money by following all the rules of humanity earn less money but for long time and they become the high status personality of the society.

People doing corruption save their money as a black money in other countries to keep hidden from the common public and use that money for bad works or increasing their physical luxury. However, common people of the society respects a lot to the people earning money using wrong techniques as they have fear of them and little bit greediness that they can get some money in return whenever required by giving them respect. They are generally called as the bhai or dada or don. Money cannot buy or stay the time as well as cannot give true love and care however highly required by all of us to run the life on the right path. It cannot give time and love however gives happiness, confidence, satisfaction, feeling of well being mentally and physically, makes life easy by solving all the difficulties, and many more.

All the essays on money given above are written by the professional content writer to help students in getting fulfilled their needs and requirements. Essay on money is generally assigned to the students to write something in their own way. Money essay is given under the category of general essay.

Frequently Asked Questions on Money

Who found money.

Money, in various forms like barter or trade, has existed since ancient times. The first coined money is believed to have been created by the Lydians, in what is now Turkey, around 600 BC.

Who said money is life?

This specific quote isn't attributed to a singular famous person. Various interpretations and contexts might exist, but the idea that money plays a significant role in many aspects of life is widely acknowledged.

What is money quotes?

A popular quote about money is, Money can't buy happiness, but it certainly helps.

What is the nature of money?

The nature of money is abstract. It has no intrinsic value but is accepted as a medium of exchange. Its value is determined by trust and the backing of an authority, like a government.

What is the value of money in life?

The value of money in life goes beyond purchasing power. It provides security, freedom, and opportunities, but isn't the sole determinant of happiness or success.

What is the importance of money?

Money is essential as it enables trade, provides financial security, meets daily needs, and offers the potential for a better life. It's a measure of one's ability to afford services and products.

What is money in own words?

Money is a tool that facilitates trade, allowing us to purchase what we need or desire. It represents value and can be saved, spent, or invested.

What is the few lines on money?

Money is a medium of exchange, used to buy goods and services. It acts as a unit of account, a store of value, and is universally accepted in transactions.

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Guest Essay

The Nobel Winner Who Liked to Collaborate With His Adversaries

By Cass R. Sunstein

Mr. Sunstein is a law professor at Harvard and an author of “Noise,” with Daniel Kahneman and Olivier Sibony.

Our all-American belief that money really does buy happiness is roughly correct for about 85 percent of us. We know this thanks to the latest and perhaps final work of Daniel Kahneman, the Nobel Prize winner who insisted on the value of working with those with whom we disagree.

Professor Kahneman, who died last week at the age of 90, is best known for his pathbreaking explorations of human judgment and decision making and of how people deviate from perfect rationality. He should also be remembered for a living and working philosophy that has never been more relevant: his enthusiasm for collaborating with his intellectual adversaries. This enthusiasm was deeply personal. He experienced real joy working with others to discover the truth, even if he learned that he was wrong (something that often delighted him).

Back to that finding, published last year , that for a strong majority of us, more is better when it comes to money. In 2010, Professor Kahneman and the Princeton economist Angus Deaton (also a Nobel Prize winner) published a highly influential essay that found that, on average, higher-income groups show higher levels of happiness — but only to a point. Beyond a threshold at or below $90,000, Professor Kahneman and Professor Deaton found, there is no further progress in average happiness as income increases.

Eleven years later, Matthew Killingsworth, a senior fellow at the Wharton School of the University of Pennsylvania, found exactly the opposite : People with higher income reported higher levels of average happiness. Period. The more money people have, the happier they are likely to be.

What gives? You could imagine some furious exchange in which Professor Kahneman and Professor Deaton made sharp objections to Dr. Killingsworth’s paper, to which Dr. Killingsworth answered equally sharply, leaving readers confused and exhausted.

Professor Kahneman saw such a dynamic as “angry science,” which he described as a “nasty world of critiques, replies and rejoinders” and “as a contest, where the aim is to embarrass.” As Professor Kahneman put it, those who live in that nasty world offer “a summary caricature of the target position, refute the weakest argument in that caricature and declare the total destruction of the adversary’s position.” In his account, angry science is “a demeaning experience.” That dynamic might sound familiar, particularly in our politics.

Instead, Professor Kahneman favored an alternative that he termed “adversarial collaboration.” When people who disagree work together to test a hypothesis, they are involved in a common endeavor. They are trying not to win but to figure out what’s true. They might even become friends.

In that spirit, Professor Kahneman, well into his 80s, asked Dr. Killingsworth to collaborate, with the help of a friendly arbiter, Prof. Barbara Mellers, an influential and widely admired psychologist. Their task was to look closely at Dr. Killingsworth’s data to see whether he had analyzed it properly and to understand what, if anything, had been missed by Professor Kahneman and Professor Deaton.

Their central conclusion was simple. Dr. Killingsworth missed a threshold effect in his data that affected only one group: the least happy 15 percent. For these largely unhappy people, average happiness does grow with rising income, up to a level of around $100,000, but it stops growing after that. For a majority of us, by contrast, average happiness keeps growing with increases in income.

Both sides were partly right and partly wrong. Their adversarial collaboration showed that the real story is more interesting and more complicated than anyone saw individually.

Professor Kahneman engaged in a number of adversarial collaborations, with varying degrees of success. His first (and funniest) try was with his wife, the distinguished psychologist Anne Treisman. Their disagreement never did get resolved. (Dr. Treisman died in 2018.) Both of them were able to explain away the results of their experiments — a tribute to what he called “the stubborn persistence of challenged beliefs.” Still, adversarial collaborations sometimes produce both agreement and truth, and he said that “a common feature of all my experiences has been that the adversaries ended up on friendlier terms than they started.”

Professor Kahneman meant both to encourage better science and to strengthen the better angels of our nature. In academic life, adversarial collaborations hold great value . We could easily imagine a situation in which adversaries routinely collaborated to see if they could resolve disputes about the health effects of air pollutants, the consequences of increases in the minimum wage, the harms of climate change or the deterrent effects of the death penalty.

And the idea can be understood more broadly. In fact, the U.S. Constitution should be seen as an effort to create the conditions for adversarial collaboration. Before the founding, it was often thought that republics could work only if people were relatively homogeneous — if they were broadly in agreement with one another. Objecting to the proposed Constitution, the pseudonymous antifederalist Brutus emphasized this point: “In a republic, the manners, sentiments and interests of the people should be similar. If this be not the case, there will be a constant clashing of opinions, and the representatives of one part will be continually striving against those of the other.”

Those who favored the Constitution thought that Brutus had it exactly backward. In their view, the constant clashing of opinions was something not to fear but to welcome, at least if people collaborate — if they act as if they are engaged in a common endeavor. Sounding a lot like Professor Kahneman, Alexander Hamilton put it this way : “The differences of opinion, and the jarrings of parties” in the legislative department of the government “often promote deliberation and circumspection and serve to check excesses in the majority.”

Angry science is paralleled by angry democracy, a “nasty world of critiques, replies and rejoinders,” whose “aim is to embarrass,” Professor Kahneman said. That’s especially true, of course, in the midst of political campaigns, when the whole point is to win.

Still, the idea of adversarial collaboration has never been more important. Within organizations of all kinds — including corporations, nonprofits, think tanks and government agencies — sustained efforts should be made to lower the volume by isolating the points of disagreement and specifying tests to establish what’s right. Asking how a disagreement might actually be resolved tends to turn enemies, focused on winning and losing, into teammates, focused on truth.

As usual, Professor Kahneman was right. We could use a lot more of that.

Cass R. Sunstein is a law professor at Harvard and an author of “Noise,” with Daniel Kahneman and Olivier Sibony.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

Follow the New York Times Opinion section on Facebook , Instagram , TikTok , WhatsApp , X and Threads .

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The Time Value of Money

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Published: Jul 10, 2019

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Money Essay

Money is the medium used by people to buy required goods and services. It is used as the source to fulfill basic needs and is also a source of comfort in life. Money is the most important source to live a healthy and prosperous life; however, it cannot be compared with the significance of love and care. Both have their own importance and benefits. Nevertheless, money is a useful and necessary commodity to live contentedly disposing all your usual liabilities towards your family and loved ones.

Long and Short Essay on Money in English

We have provided some simply written essay on money to help your kids to do better in their essay writing competition.

These Money Essay are written in easy English so that student of any class can easily understand it and also reiterate it or write it down, whenever required.

We have divided following essays under long and short essay on money in English according to the need, to help your kids to do better in their school competitions.

These essay on money will prove useful in your school assignments or general discussion with your family and friends.

Money Essay 1 (100 words)

Money is the most basic requirement of the life without which one cannot fulfill his basic needs and requirements of the daily routine. We can never compare the importance of the money with the importance of love or care. When one need money, love cannot fulfill this requirement and if one need love, money cannot fulfill this requirement.

Both are highly required for the healthy life but they have their significance and importance separately. Both are required by us on urgent basis so we cannot rank both on the same scale. We need money everywhere such as to eat food, to drink water or milk, to see TV, news, subscribe newspaper, wear clothe, get admission and many more requirements.

Money Essay 2 (150 words)

Money is the basic requirement of the life without which one cannot imagine a healthy and peaceful life. We need money even buying a little needle. In the modern time, where growth of civilization is going very fast and following western culture, we need more money because of the increasing prices of everything. Earlier there was a system called barter system in which one was allowed to exchange things to get goods however, in the modern one need only money to buy everything.

The importance of money is increasing day by day as the living has become so costly. The significance of money has increased to a great extent in the field of production, consumption, exchange, distribution, public finance and etc. It plays a very crucial role in determining the input, income, employment, output, general price level of anything, etc.

Money Essay 3 (200 words)

In such a costly and competitive society and world, no one of us can live without money. We need money to fulfil our basic needs of the life such as buying food, and other many basic necessities of life which are almost impossible to buy without money. People in the society who are rich and have property are looked as honourable and respectful person of the society however a poor person is seen as hatred without any good impression.

Money increases the position of the person in the society and gives good impression to him. All of us want to be rich by earning more money through good job or business in order to fulfil all the increasing demands of the modern age. However, only few people get this chance of completing their dreams of being a millionaire.

So, money is the thing of great importance all through the life. Money is required by everyone whether he/she is rich or poor ad living in urban areas or rural areas. People in the urban areas are earning more money than the people living in backward or rural areas as the people of the urban areas have more access to the technologies and get more opportunity because of the easy sources.

Money Essay 4 (250 words)

Money is very much required thing in the life however; it cannot buy things like time, love and true care. It can only fulfil the outer needs of the person and not the inner needs like true love. Now-a-days, everything has become so costly but necessary to buy for living a simple life. And what if we have no money, either we would die or suffer more if saved.

Money has capability to buy anything virtually and helps us a lot throughout the life. By taking the importance of the money in our life we should never destroy or waste the money without any purpose. We should not compare the money and love because both are required separately to run a successful life.

In this competitive world, everyone wants to get good study with higher education from the popular college and university to get good job in order to earn more money. A person needs more money to fulfil the requirement of the all members of the family especially one who is only working person of the family.

He or she needs to fulfil the eating, clothing and living requirements of the family members and for that money is required. Rich people of the society are given particular recognition and popularity however poor people live their life by arranging just food for two times a day. All the changes and differences are just because of the money.

Money Essay 5 (300 words)

Money is really a very important thing for the human beings to lead their life in the satisfactory way. Unlike animals and plants, we need more money everywhere. In order to live in the society, we need to maintain our status and position in the society for which we need money. In order to eat food or drink water, wear cloth, get admission to the school, take medicine or go to the hospital and other many activities we need lots of money. Now the topic arise is, where we got such required money. We need to get higher level study and do hard works to get good job or open our own business which requires more skill and confidence.

Earlier the condition of poor people was very poor because of the pressure of the rich people. They were not helping the poor people and use them only as a servant on the very low salary. However the condition of the poor people has become good as the rule and regulations of the government as been change in order to equalize the condition of both. Now everyone has equal rights to study higher and get good job. Many people understand that money is the origin of the evil in the mind however I do not think so because thinking is the process of human mind and not the creation of money.

I understand and believe that money is the most important key of happiness gifted by the God. It is the human mind to take anything in different ways. Some people take it only to fulfil their physical needs and they never take it heartily however some people understand everything to the money and they can do anything for getting the money such murder, corruption, underworld work, smuggling, promoting bribe, etc.

Money Essay 6 (400 words)

There is no any doubt that money is so essential for our healthy living. Money is almost everything for us to live a life and maintain the good stats in the society. It is the money which fulfils the need of bringing necessary comforts and amenities of the life. If one has money, he/she can get anything in his/her life. It is the money which helps us in developing good personality, improving confidence, makes us able to creditworthiness, improving capacity, increasing capabilities and enhancing our courage to a great level. Without money we feel helpless and alone in this world where no one is ready to help and assist. In the current materialistic world, money is very important and powerful thing without which one cannot live and survive.

Now-a-days, in order to earn more money in wrong ways, bad people are taking help of corruption, bribe, smuggling, murder rich people of the society, and other callous activities by degrading the moral and ethical values of the humanity. Lazy people follow wrong ways to earn money as they understand that these ways are simple and easy however it is not true. One can earn more money in less time and effort but not for long; surely he would be lost in the near future as he is following wrong and weak way. The people who are earning money by following all the rules of humanity earn less money but for long time and they become the high status personality of the society.

People doing corruption save their money as a black money in other countries to keep hidden from the common public and use that money for bad works or increasing their physical luxury. However, common people of the society respects a lot to the people earning money using wrong techniques as they have fear of them and little bit greediness that they can get some money in return whenever required by giving them respect. They are generally called as the bhai or dada or don. Money cannot buy or stay the time as well as cannot give true love and care however highly required by all of us to run the life on the right path. It cannot give time and love however gives happiness, confidence, satisfaction, feeling of well being mentally and physically, makes life easy by solving all the difficulties, and many more.

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All the money essay given above are written by the professional content writer to help students in getting fulfilled their needs and requirements. Essay on money is generally assigned to the students to write something in their own way. Money essay is given under the category of general essay. You can get other related essays and related information such as:

Essay on Poverty

Essay on Jan Dhan Yojana

Essay on Honesty is the Best Policy

Essay on Honesty

Essay on Corruption

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Money: Short Essay on Value of Money

Category: Essays and Paragraphs On November 27, 2018 By Janhavi

Value of Money

The Value of Money has always played a key role in the human world. Money has changed it faces, changed its shape and size, changed its colour and usage, but the Value and Central Role of Money has always stayed the same.

Money is the means or the currency used for exchange of goods, or for the purpose of business or for the purpose of trade and commerce or for the purpose of valuing a particular goods or service. All these exchanges and valuations are central to our everyday existence and hence the Value of Money is also central to our everyday existence.

Applications of the Value of Money in daily life: We receive Money or earn Money by engaging in a particular profession, career or business. We get paid for the work that we do. This can be physical or intellectual work. The Value of our Work is evaluated by the Value of the Money that we receive for it. We spend this money to buy Services and Goods that we need for our daily life. These include a house, a car, clothes, food, drinks, water, electricity, household goods, household electronics like TV, Refrigerator, etc. These also include services like food delivery, barber shop, legal services, medical consultation, etc. All of these we buy with the Value of the Money we have. All of these have a Value tag attached to them, and if we have that Money we can buy them, otherwise not. So what we can afford and how we live our daily life directly depends on the Value of the Money we have. To increase the level of our lifestyle we need to increase the Value of the Money we possess. The entire human race spends most of its lifespan on increasing and accumulating more Money so that the Value it can add to one’s life increases.

Dimensions of the Value of Money: There are Material, Emotional and Spiritual dimensions to the real Value of Money in our lives. The material dimension determines how many material possessions we can have. The emotional dimension determines the dreams we associate with our Money. The Spiritual dimension determines the satisfaction we derive from our Money.

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Trump stock (djt) is overvalued-but you might be crazy to short it.

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NEW YORK - SEPTEMBER 20: Donald Trump (L) speaks with Frank Zarb, former CEO of the Nasdaq Stock ... [+] Market, before opening the Nasdaq Market September 20, 2005 in New York City. Trump listed Trump Entertainment Resorts with Nasdaq. (Photo by Michael Nagle/Getty Images)

Dumb Money was a movie based on a true, David vs Goliath tale, that pitted small, retail stock investors against deep pocketed Wall Street titans. GameStop was the preferred stock of choice. In this story an assembly of small, “naive” investors clobbered the savvy billionaires thanks to a“short squeeze” play utilizing an investments column on Reddit and gutsy resolve among a broad-based contingent. Ultimately, the humbled rich guys, recouped some of their losses, but not without some battle scars, and a few lessons on how to properly track the number of days to cover a short position. It is now 3 years later and the shorts are at it again. This time the stock of choice belongs to Former President Donald Trump, known as Trump Media & Technology Group (NASDAQ Ticker: DJT). In place of the Reddit crowd, we have fervent Trump loyalists who are scattered around the country in mostly rural areas. They love their guy, and unlike most “investors”, may not really care about making money. With a current stock price near $40, DJT sells for a 33% discount to the Trump bible and provides him with more money. It would not take much for this group to rally and cause serious pain to the shorts. As an important note, shorts are exposed to unlimited losses and have a steep entry fee to play their “game”. DJT is shaping up to be another GameStop saga (GameStop II or Dumber Money?). Despite all temptations, this is a good stock to avoid—on both sides. The risk is simply too high.

To be clear, Donald Trump’s name elicits strong emotion—both positive and negative. When it comes to publicly-traded stocks, polarized emotion can either be very good or very bad for a stock price. In the case of DJT, both are on visible display. Irrespective of Trump’s NY real estate holdings, global hotels, TV and book royalties and other miscellaneous business interests, it his recent stock transaction that has become the cornerstone to his total net worth holdings. During the past few weeks his net worth has soared more than $3-4 Billion raising his net worth from $2B to $6B. Moreover, the SEC S4 filings make clear, that if the stock price remains above $17.50 for 20 out of 30 trading days, Mr Trump will receive an additional 36 million “earnout” or bonus shares. Based on recent prevailing stock prices in the range of $45-$50, these earnout shares could be worth an additional $1.5 to $2 Billion. Consequently, his special stock earnout clause will go into effect, unless his stock drops by more than 63% from current levels in a few weeks.

Ironically, just a few weeks ago the former president was under severe financial pressure, with $454 million in fines, penalties and judgements and was seemingly on the brink of default. Now, in less than 1 month, Mr Trump’s wealth has potentially quadruppled from approximately $2 billion to as much as $8 billion. This is an extraordinary turn of events and there are few, if any, on the planet who have experienced a net worth gain approaching this much during the same time period. It all happened precisely when he needed it most and his back was against the wall. Irrespective of whether you love him or hate him, there can be no denying that the former president has been blessed with good timing and luck. Certainly in this case, his fortuitious, sky rocketing stock fortune bailed him out. At least temporarily...

It is worthwhile to examine the underlying components of his recent wealth creation. To most industry observers it is an overpriced facade due to crumble and wreak havoc on those who have supported an inflated valuation.

At the very least, the stock, Trump Media & Technology Group (NASDAQ Ticker: DJT), has exceeded all normal stock valuation metrics. From a traditional valuation perspective, there is no publicly traded company, out of 66,000 publicly-traded companies that we examine on Bloomberg or Capital IQ, that can compare to this stock. To be clear, there is nothing even close.

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To properly analyse the DJT stock price, it may be helpful to provide a few background facts of how the Trump Media & Technology Group came to be a publicly-traded company. The story begins with a special purpose acquisition corporation (SPAC) known as Digital World Acquisition Corp (DWAC) that launched in September, 2021. This “Sponsor” company raised $287.5 Million with the intent to later acquire a target company. SEC records show that some controversy surrounded the timing of the offer (strict rule that SPACs could not be formed with the intent to buy a specific target) as well as the timing of some insider trades. But this information regarding impropriety is an important, albeit, side detail in the larger picture.

In the month following the DWAC launch, a Letter of intent (LOI) was extended to Trump Media for $875 Million (total enterprise value of $1.2 billion). The offer was somewhat surprising for a number of reasons. First, the SPAC ownership was created with the help of ARC capital, a Chinese-based company that had a prior history with SEC investigations associated with misrepresenting shell companies. Second, the valuation of the initial offer at $875 Million, was a stretch based on any traditional valuation metric. And third, as discussed above, the timing of the SPAC formation and LOI offer led to an SEC investigation with associated fines/penalties imposed.

Once the target company (Trump Media) accepts the LOI offer to merge with a public SPAC sponsor company, there are many preparations required prior to announcing a public business combination agreement (BCA). At the time of the BCA announcement the sponsor company typically seeks an independent group to provide a “Fairness Opinion” on the offer price to ensure that there is some oversight and protection for the shareholders. The “Fairness Opinion” is submited to the Board of Directors of the Sponsor group, who have a legal obligation to protect the interest of all shareholders including insiders (Class B) as well as public shareholders (Class A). Since there is the potential for a conflict of interest, the BOD seeks a layer of protection from a group of established experts, who ideally possess impeccable credentials, credibility and industry experience. This group evaluates the target company and provides an independent view on the appropriateness of the offer price. Notably, “Fairness Opinions” were not mandatory several years ago when the Digital World Acquisition Corporation first created its SPAC and placed a target price on Trump Media. Nowadays, due in large part to overly optimistic growth projections by target companies undergoing a SPAC transaction, the Securities and Exchange Commission (SEC) is more focused on inflated valuations and target growth projections. To this point, the SEC documents do not disclose that any Fairness Opinion was ever provided for the Trump Media target, and it is highly doubtful that any credible expert would be able to easily justify or support the original $875 Million price ($1.2 Billion total enterprise value).

The valuation of DJT, based on traditional metrics, is a relatively straight forward exercise. SEC documents show that Trump Media expected monthly active user growth ranging from 58% to 33% for the first four years along with revenue growth of 90% to 55%. Importantly, expected enterprise to revenue multiples ranged from 26.8x to 13.3x for years one through five sequentially. To put the valuation in perspective, the enterprise to forward (next period) revenue valuation multiple for other social media companies such as: Meta, Twitter, Pinterest, Snapchat, Reddit or Tencent ranges from 8.0 to 3.6. Trump Media has a TEV (total enterprise value) to Revenue multiple (based on 4/4/24 price) of 984 or 123x to 273x more than other social media companies. This implies that Trump Media (DJT) is currently valued at a massive premium to other well known social media companies . To put this another way, based on the current $3.4 million in revenue and expected growth rate of 90%, they would have approximately $6.4m in revenue for next perod. Utilizing the forward TEV of Meta (8.0), Trump Media would have a market capitalization of approximately $50M. The current market capitalization of DJT (based on 4/4/24 closing price) was $6.3 Billion! This is an approximate overvaluation of 125X. Alternatively, the DJT stock could drop by 99% and still be considered overvalued by current valuation metrics.

This perceived overvaluation may entice some investors to “short” the stock or sell the stock at current levels and then repurchase at a later time (when they believe the price will be at a lower level). But this strategy can go painfully wrong. For those familiar with the GameStop short squeeze saga, consider DJT as a potential GameStop II. Things could get (very) ugly for either side and investors would be wise to simply stay on the sidelines and watch events unfold.

In order to “short” a stock, the short seller needs to “borrow” the stock from an existing long-only investor. For most stocks this is not a herculean task. An investor simply asks his/her broker to short a stock and the broker “borrows” the stock from a willing participant. But Trump Media is no ordinary stock. Whereas the cost to borrow a stock might normally be a few annualized percentage points, the cost to borrow Trump Media is currently set at an annualizedc rate of 550% for existing short sellers. And, according to short sale data provider S3 Partners, new short sellers need to pay as much as 900% annualized interest rate (new record) to short the stock. This implies that for a new short seller, the stock would have to drop by 2.5% per day just to break even!

There are currently 57 million shares in available float (available to trade). Of this amount, 1.67m shares are held by institutional investors (2.9%) and the rest are held by retail investors. There are currently 4.9 million shares currently short and trading volume has been running above 5 million shares per day for the past few days. Unlike, the Gamestop situation a few years ago, there appears to be plenty of liquidity for short sellers to escape within a day, if necessary.

But there are some other issues to address. Mr Trump currently holds 78,750,000 shares (57.6%) before his additional 36,000,000 (potential) earnout shares and given his contractual 6 month lock up, he cannot sell shares anytime soon. Moreover, after Mr Trump receives his additional shares, he will hold 65% of the company, which will be the second highest concentrated ownership percentage of any individual holder with a multi billion dollar company (after Carl Icahn). Finally, the fact that Trump Media (DJT) is a stock that is trading for a value based above $6 Billion, despite compelling data to suggest it is valued far less, demonstrates the power of retail investors to bid a stock up to seemingly unreasonable levels. Although at the timing of this publication (4/5/24), the stock is well off its $71.93 high since its March 26, 2024 DeSpac, it still has the potential for a retail trade rally. The cost to short the stock is 900% on an annualized basis. This is not a stock that an investor can hold for very long without getting burned. Though temptation may suggest that it is easy money to short this stock, the better decision is probably to sit on the sidelines and watch. Nothing good will happen to the new short seller, if many retail investors or even a deep pocketed hedge fund decides to come in strong on the other side.

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Time Value of Money: What You Should Know Essay

The time value of money is a paramount financial concept, according to which a certain amount is now worth more than the same amount in the future. This is due to the possibility of investing at the moment and generating income, which will lead to an increase in the amount of money in subsequent years. Another reason is that the expectation of cash flows in the future always carries the risk of default. Schmidt (2021) highlights two methods for determining the time value of money – discounting and compounding. Discounting is used to calculate how much money needs to be invested currently to get a given amount in the future. Compounding, the inverse of discounting, is done to determine how much money can be received in the future if they are invested a certain amount presently.

When assuming the time value of money, one must always consider inflation and the corresponding adjustment in purchasing power. Inflation hurts the ability to buy goods. By reducing the value of money, this economic phenomenon reduces purchasing power without changing the amount of money available. If the estimated return is less than inflation, it may turn out that money is made, but purchasing power is lost.

There are five main components of the time value of money: rates, periods, present value, future value, and payments. Schmidt (2021) notes that by knowing any 4 of the five components, one can easily find the fifth one. Based on this, the author highlights the practical problems of the time value of money. According to Schmidt (2021), there are three main types of compounding problems and three basic types of discounting problems, which form 6 dollar functions.

The author distinguishes three basic types of compound tasks: the future value of a single sum, the future value of a series of payments, and the amount of payment required to achieve the future value. In turn, the other half of the six functions of the dollar is related to discounting. These time value of money issues include determining the present value of a single sum, the present value of a series of payments, and the amount of payment required to amortize the present value, such as a loan. The author provides a decision table containing answers to the above six problems. Because these fundamental time value of money issues crop up in finance and commercial real estate, mastering them is essential to improving skills.

Schmidt, R. (2021). What you should know about the time value of money . Property Metrics. Web.

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IvyPanda . "Time Value of Money: What You Should Know." March 8, 2023. https://ivypanda.com/essays/time-value-of-money-what-you-should-know/.

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