We all want money but we don’t really understand what money means.

If you have ever tried to find out what money is, then this article is for you.

I will explain to you what it means in 8 simple steps.

Ok, let’s start.

1. Money is a medium of exchange
In the olden days, it was difficult for people to get what they needed.

See how it was

At that time, a baker who bakes bread needed shoes.

He’d have to enter the community and look for someone who has shoes and also wants his bread. To give his bread to and take shoes.

Do you get it?

If he can’t find this person them no shoes for him.

You see how difficult it was.

Here is another example:

If you had white soup in the house but wanted rice and stew. Ok.

You have to go and look for someone who has rice and stew to give you and also wants your white soup in exchange.

So what if your white soup spoils while you’re still looking for someone with rice and stew to exchange.

Now, money ends that difficult situation.

With it, you can buy whatever you want, whenever and wherever.

Because everyone accepts it as an exchange for what they have to give you.

A trader in the market will collect your money and give you his shoes if that’s what you want.

The doctor will take it and treat your sickness.

In summary, money makes it easy for you and me to exchange value.

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