Street Smart Finance
What Is Money
Money is a medium that allows people to buy goods and services efficiently. Before money existed, people used the barter system, where goods were directly exchanged for other goods. This system was often difficult to manage, especially when the value of items didn’t match or when people didn’t want what the other person had to offer
Why Money Works
To solve these problems, societies created money. Coins, notes, and now digital forms like UPI or Paytm serve as standardized tools for transactions. Money works because it is widely accepted and trusted by people, and it is backed by institutions like the government and central banks. In India, the Reserve Bank of India (RBI) is responsible for issuing currency and maintaining its integrity in the economy.
Why Money Matters
Money plays an essential role in our daily lives. It allows individuals to save, invest, and plan for future goals. Learning how money works helps build a foundation for making smart choices about spending, saving, and financial security. From buying food and clothes to investing in education or health, money is a vital tool that supports personal and societal development.
