Revised November 5, 2013
We start with the question. What is money? Many people don’t know what money is. They find themselves with a lot of interest and attention placed on money. Money has a way of drawing and holding people’s attention. Down through the age’s money has had a way with attracting the attention and interest of individuals. Many people have fought and died because of the attraction of money. On this site, I will address the question. What is Money? I will demonstrate what money is and how it is created.
Money has two parts. The first part is the symbol. The second part is the value this symbol represents.
The symbol is made from paper with highly ornate designs inked into it so as to make it very difficult to counterfeit. In these modern times money should also have a serial number inked into it. Money is also made from stamped metal in the shape of disc variations.
In the past many other solid material forms were used as a symbol to represent value. Some examples are gold, shells, beads or any other hard to find or duplicate objects.
The second part of money is value. The value comes from the production of commodities, trades, goods and the services exchanged on the Open Market (open to all on equal terms.)
In short, money is a symbol that represents the value created during the production of commodities, trades, goods and services. You create money value every day if you create commodities, trades, goods and services that are exchanged on the Open Market.
Instead of you exchanging your production for someone else’s production, you exchange your production for money units and then you take the money units and exchange them for another person’s production. This is where the term, “Money is a medium of exchange,” comes from.
Even in your family life, your children can create production. Their production comes in the form of their school work, their hygiene duties, their household chores, and in the production of the social behavior you value as a parent. The Children’s ISA is a great investment fund for children. You could set up a fun game with them by exchanging money for each of their products on a weekly, daily or monthly basis. In this way you are teaching them what money is and how to create more of it. When they are out in life they will have a very solid concept of what money is and how to create it and thus have a prosperous life.
Never knew what money was till i read this one. Such clarifying insight on something taken for granted so often.
Thank you William. Your feed back is valuable.