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Guarantor loans lender BuddyLoans 1st infographic looks into detail on exactly what money is.Enjoy it & please share it
Let’s Talk About Money and Why We Value It!
monÂ·ey ËˆmÉ™nÄ“/ noun:]
a current medium of exchange in the form of coins and banknotes.
“A medium that can be exchanged for goods and services and is used as a measure of their values on the market, including among its forms a commodity such as gold, an officially issued coin or note, or a deposit in a chequeing account or other readily liquefiable account.”
“The official currency, coins, and negotiable paper notes issued by a government.”
“Assets and property considered in terms of monetary value; wealth.”
Slang terms for money:
- Fiver for a £5 note.
- Tenner for a £10 note.
- Bob [as in I’ll bet that cost a few bob]
Why do we value a piece or paper or a coin made of metal, and why do some try to copy it in the form of counterfeiting?
Money costs money to be made/printed or coins struck. There is the cost of the materials used to make money, the electricity used, employee’s wages, the building, etc.
Here in the UK we have the Royal Mint which originated over 1,100 years ago. The Royal Mint operates as Royal Mint LTD and is owned by HM Treasury. The Royal Mint’s operations are located at Llantrisant, Mid Glamorgan, Wales. Our paper currency has many safeguards built in it to prevent or make counterfeiting more difficult.
Counterfeiting is almost as old as money itself; as soon as a currency is decided on and printed, someone is looking to make copies or counterfeit it. The use of special paper, inks, various colours, holograms, metal threads, and watermarks are all used as anti-counterfeiting measures by the Royal Mint.
Money does wear out and need to replaced. The average life span of a note here in the UK is one (1) to five (5) years. However, the lower the denomination of a note the shorter its life span will be. Some fivers may last only nine (9) months to a year, where as a £50, may last for many years. For the past 300 years banknotes have been printed on paper. The Bank of England has been researching and talking about using plastics for our bank notes for a few years now. In fact they have had a three year research programme looking into what materials should be used to replace our cotton paper notes in which we use now.
So beginning 2016 our bank notes will be printed on a polymer plastic. The new plastic notes will look the same and be the same size in their width and length, however they will last 2.5 times longer than a paper note and are healthier as they stay cleaner. They will also be more difficult to copy or counterfeit.
Currency = amount of gold
Many countries began their monetary system based on the Silver Standard, using silver not gold as an economic unit of account. A fixed weight of silver was the foundation for money. This was used around the world and in Great Britain we can still trace its roots back as our currency is called the pound sterling.
Bartering – Bartering became too cumbersome. It’s easier to carry around some gold or silver coins, and now paper money, than to carry around a few goats, sheep, or cows.
Money was commodity based, and when it was to be changed to something easier and simple to exchange, a universal system needed to be in place. So a gold and/or silver standard was accepted due to the value of these metals. Their value in part comes from their scarcity.
Fiat Currency – “Fiat money is money that derives its value from government regulation or law. The term fiat currency is used when a fiat money is used as the main currency of the country. The term derives from the Latin fiat(“let it be done”, “it shall be”)
This type of currency was first used in China around 1000 years ago, and has been used intermittently by various countries since. It also has been used in conjunction with currencies backed by metals; such as gold or silver.
The “Song Dynasty” in China was the first to issue paper money called “jiaozi” around the 10th century AD. This paper money was valued at the exchange rate for gold, silver or silk.
The value of anything is subjective – A property being sold is only worth what someone will pay for it. There are collectors of every sort in the world. Millions is spent at auctions for antiques, cars, paintings, etc, all because someone has put a value on them, by wanting them and are willing to pay a price.
Supply and Demand – Is an economic model of price determination in a market. Basically a price for goods or services will vary until it settles at a point where the “quantity demanded by consumers will equal the quantity supplied by producers.
Sayings, phrases and idioms involving money:
- “Money is the root of all evil”
- “A fool and his money are soon parted”
- “Sound as a pound”
- “Money talks”
- “Money can’t buy you love”
- “Lend your money and lose your friend”
- “Money is burning a hole in his pocket”
- “Money doesn’t grow on trees”
- “Not for love or money”
- “If you pay peanuts, you get moneys”
- “Money makes money”