VIDEO: The language of money
- Money is a store of value and a medium of exchange.
- It has its own language, and like most countries, if you cannot speak the ?lingo? you will not have a clue what is going on.
- Some people call this financial literacy, but what we are really talking about here is the language of money.
Money, which is a store of value and a medium of exchange, has its own language which means if you cannot speak the ?lingo? you will not be able to understand what is going on.
Before money was invented, people used to barter by exchanging goods for other goods.
Money, which is also referred to as cash, is now the medium in the middle and how much money someone is prepared to pay for something sets the price.
The fundamental driver of money is supply and demand. The higher the demand, the higher the price, and if there is little or no demand, the price will fall.
This is also a fundamental concept in the field of economics but money is not isolated to the discipline of economics - it has applications in the other two major disciplines of finance and accounting.
There is a lot to learn in this field, but money is a good motivator to take the first step. So learning everything about money is only going to make you better at managing it.