Money is what people use to buythings and services. Money is what many people take for selling their own things or services. There are many kinds of money in the world. Most countries have their own kind of money, such as the United States dollar or the Britishpound. Money is also called many other names, like currency or cashand paisa(india).
History of money[change | change source]
The idea of bartering things is very old. A long time ago, people did not buy or sell with money. Instead, they traded one thing for another to get what they wanted or needed. One person who owned many cows could trade with another person who owned much wheat. Each would trade a little of what he had with the other. This would support the people on his farm. Other things that were easier to carry around than cows also came to be held as valuable. This gave rise to trade items such as jewelry and spices.
When people changed from trading in things like cows and wheat to using money instead, they needed things that would last a long time. They must still have a known value, and could be carried around. The first country in the world to make metal coins was called Lydia. These first appeared during the 7th century BC, in the western part of what is now Turkey. The Lydian coins were made of a weighed amount of precious metal and were stamped with a picture of a lion. This idea soon spread to Greece, the rest of the Mediterranean, and the rest of the world. Coins were all made to the same size and shape. In some parts of the world, different things have been used as money, like clam shells or blocks of salt.
Besides being easier to carry than cows, using money had many other advantages. Money is easier to divide than many trade goods. If someone own cows, and wants to trade for only "half a cow's worth" of wheat, he probably does not want to cut his cow in half. But if he sells his cow for money, and buys wheat with money, he can get exactly the amount he wants.
Cows die, and wheat rots. But money lasts longer than most trade goods. If someone sells a cow for money, he can save that money away until he needs it. He can always leave it to his children when he dies. It can last a very long time, and he can use it at any time.
Not every cow is as good as another cow. Some cows are sick and old, and others are healthy and young. Some wheat is good and other wheat is moldy or stale. So if a person trades cows for wheat, he might have a hard time arguing over how much wheat each cow is worth. However, money is standard. That means one dollar is worth the same as another dollar. It is easier to add up and count money, than to add up the value of different cows or amounts of wheat.
Later, after coins had been used for hundreds of years, paper money started out as a promise to pay in coin, much like an "I.O.U." note. The first true paper money was used in China in the 10th centuryAD. Paper money was also printed in Sweden between 1660 and 1664. Both times, it did not work well, and had to be stopped because the banks kept running out of coins to pay on the notes. MassachusettsBay Colony printed paper money in the 1690s. This time, the use became more common.
Today, most of what people think of as money is not even things you can hold. It is numbers in bank accounts, saved in computer memories. Many people still feel more comfortable using coins and paper, and do not totally trust using electronic money on a computer memory.
Kinds of money[change | change source]
Many types of money have been used at different times in history. These are:
Commodity money can be used for other purposes besides serving as a medium of exchange. We say it possesses intrinsic value, because it is useful or valuable by itself. Some examples of commodity money are cattle, silk, gold and silver. Convertible paper money is money that is convertible into gold and silver. Gold and Silver certificates are convertible paper money as they can be fully convertible into gold and silver.
Inconvertible money is money that cannot be converted into gold and silver. Notes and coins are inconvertible money. They are inconvertible and are declared by the government money. Such fiat money is a country's legal tender. Today, notes and coins are the currencies used in bank deposits.
Types of bank deposits:
More reading[change | change source]
- Ferguson, Niall (2008). The Ascent of Money: A Financial History of the World. Allen Lane. ISBN 9781846141065
- Davies, Glyn (2010). History of Money: From Ancient Times to the Present Day (Fourth ed.). University of Wales Press. ISBN 9780708317174
References[change | change source]
Other websites[change | change source]
|Wikimedia Commons has media related to Money.|
Early 6th century BC Lydian coin
US-$10,000 Certificate of Deposit, 1875
Talking about money is a cultural taboo for a reason. Not only is money a personal and emotional issue, but it is also a conversational land mine that often makes someone feel uncomfortable and vulnerable.
Despite all of this, there are still plenty of Nosy Parkers out there who think nothing of asking intimate money questions of their friends, family, and strangers on the subway.
The thing is, unless you are sitting across the desk from a loan officer, an accountant, or an IRS agent, you never have to answer questions about money that make you feel awkward. Here are six of the most common nosy money questions you are likely to encounter, and some suggestions for deflecting your inquisitor.
1. How Much Do You Make?
People ask this question for a number of reasons, from idle curiosity to a desire to size up your entire life based upon your salary. While there are a few legitimate reasons someone might ask you what you earn — for instance, if the asker is looking to get into your field or planning to ask for a raise — there are better ways to answer that question without making a friend or colleague uncomfortable. For instance, Glassdoor offers a salary comparison tool that can help you understand salary trends in various fields and geographical areas.
There is one major caveat to putting the kibosh on this question, however. The fact that we do not discuss compensation in polite company has helped to entrench the gender wage gap. For instance, you may recall Jennifer Lawrence's essay about how shocked she was to discover that her male co-stars in the movie American Hustle made significantly more than she did. The only reason she was aware of the pay discrepancy was because of the Sony email hack.
It is for this reason that Jessica Bennett of Time recommends that women "simply [talk] about money with a colleague — or, who knows, maybe a friendly supervisor…[This] helps determine whether you're being fairly compensated in the first place."
Of course, there is a difference between having an open conversation with a trusted colleague and answering a question like "You're an art therapist? How much do you even make?"
Deflecting This Question
While you do not want to respond with a curt "None of your business," it is important to remember that your compensation really is no one's business but yours and your employer's. Often, responding lightly — for instance, by saying "Half of what I'm worth, I'd say," or by placing your pinky against your mouth and intoning "One million dollars!" can be enough of a diversion for you to change the subject.
2. How Much Did That Cost?
On the surface, this can seem like an innocuous question. The person asking it is often admiring your new car, your cute blouse, or the champagne fountain at your wedding. Asking the price of your item can be an indication that the asker is interested in getting something similar for herself.
However, knowing how much you spent on any purchase you have made is not anyone else's business. A lot can go into a purchase, including negotiation, a family and friends discount, or a recent windfall. You are under no obligation to tell anyone who asks that your uncle just started a champagne fountain business and he provided the one for your wedding as a present.
As with the question about salary, there are some legitimate reasons to ask this question. For instance, new parents will often swap stories about day care costs and where to get the best deal on baby gear. But even if your questioner has an excellent reason for asking, they do not have to get the information from you. (See also: 10 Money Moments That Are Awkward for Everyone)
Deflecting This Question
Instead of answering with how much you spent, tell your questioner where the item came from: "It's from Uncle Bingo's House o' Champagne Fountains. He has great stuff there!" If the questioner is truly interested in getting a similar item, that provides him with the necessary information.
3. Can You Afford That?
This is the ruder version of the question of how much things cost. It means the questioner has made assumptions about your finances, the cost of whatever you are purchasing, and your own ability to do a cost-benefit analysis. Unfortunately, this question often seems to come from a place of concern. The "concerned" friend, classmate, or fellow cocktail party guest can shame your choices while appearing to care about you.
The thing is, even if you can't afford it, it's not business of the concerned questioner.
Deflecting This Question
This is the kind of situation that the Southern phrase "Bless your heart" was coined for. Bless your heart is a sweet way of letting someone know that she is an idiot and she needs to butt out. In this case, you can respond by saying, "Bless your heart for worrying about me!" There is pretty much nothing a questioner can say once you've blessed his heart.
4. Do You Get Child Support/Alimony?
For some reason, people will treat divorcing couples as if all boundaries have been shattered, particularly if the couple has children. Asking a single parent or recent divorcé[e] if the ex is ponying up any support is a common line of questioning that is completely inappropriate. Generally, the questioner is indulging curiosity or hoping to judge your ex. There is no need for you to answer this question.
Deflecting This Question
This is the kind of question that is hardest to deflect. Many of the Miss Manners-approved suggestions for redirecting nosy questions do not work with the truly shameless — which includes anyone asking questions about child support and alimony. I have rarely met someone who was willing to ask such personal questions but stopped short when told, "I prefer not to discuss it."
Ultimately, however, that is the line in the sand that you must draw. It's also a good idea to immediately segue into something else, i.e., "So how about them Baltimore Ravens?"
5. How Much Do You Have in the Bank? (Or, How Much Do You Have Invested?)
In general, the only people who might ask such a question are either clueless, intrusive, or conmen. Unless the person asking is someone you are currently planning to marry, there is no need to even think about answering this one.
Deflecting This Question
For the clueless individuals asking about your net worth, remember that they may be looking for some sort of guidance. You can tell them that numbers are not up for discussion, but that you're happy to talk about your approach to finances if they are interested.
6. Can I Borrow/Have Some Money?
Technically, this is not a question you do not have to answer, since no is a complete answer in and of itself. But it needs to be included on this list because it can be an extremely sticky question, particularly when you simply do not want to give money to the person asking for it.
It can be very difficult to turn down money requests, especially if they are coming from family members or long-time friends. However, you need to remember that your money is your own to do with as you see fit.
Deflecting This Question
It may seem reasonable to simply say you cannot afford to give your questioner money, but this adds another layer of stress to the relationship. In that case, you might find your would-be borrower questioning every purchase you make since you said you couldn't afford to help her out.
Instead, it's good to be firm but straightforward. For instance, you might say, "I'm not comfortable giving/lending money to people." Or, you can simply say, "I'm sorry I can't help that way. I have specific plans for my money."
If you want to make sure the would-be borrower knows that you care, you can always follow up by asking if there are other, non-financial ways that you could help.
Have you ever been asked these — or other — questions about money? How did you respond?
Tagged: Personal Finance, alimony, borrowing, deflecting, money questions, salary
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