25/07/2023
Hi ,
As a Financial Transformation Coach, starting series of knowledge sharing session in this page. I hope this initiative will help people to get basic idea on Money and Money Management techniques & to improve the Financial literacy.
What is Money and Different forms of Money available in the market
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Money is a medium of exchange that is widely accepted for goods, services, and debts. It serves as a unit of account, a store of value, and a standard of deferred payment. In essence, it facilitates the exchange of goods and services, making economic transactions more efficient compared to barter systems. In short, money is a resource and tool to do transactions (buy/sell) of any products and services in the market.
In modern economies, various forms of money exist in both the market (economic activities) and personal life. Below mentioned are some of the main forms of money:
1. Cash: Physical currency in the form of coins and banknotes issued by the government and central banks. This is the most traditional form of money. Currency will be varied from country to country. For Eg: INR is Indian Currency, US Dollar is the current of United States of America and so on.
2. Digital or Electronic Money: Non-physical money represented electronically, including bank account balances, digital wallets, and online payment systems. Examples include credit cards, debit cards, mobile payment apps like PayPal, Apple Pay, Google Pay, etc.
3. Bank Deposits: Money held in bank accounts, which can be accessed through checks, debit cards, or online transfers. Examples include Savings Bank Account(SB),Current Account(CA),Recurring Deposit(RD), Post Office Account(PO Account) etc.
4. Cryptocurrencies: Digital or virtual currencies that use cryptography for security. Examples include Bitcoin, Ethereum, and many others. Cryptocurrencies are decentralized and typically operate on blockchain technology. Please note that it is more riskier one as well and hence invest in crypto only after doing your own home work ( means learn the system properly and deposit post that if you are ready to take risk).
5. Travellers' Checks: Pre-printed checks that can be used as a form of payment while traveling. They can be replaced if lost or stolen.
6. Money Orders: Prepaid certificates often used for transferring small amounts of money or making payments where personal checks are not accepted.
7. Gold and Precious Metals: Historically, precious metals like gold and silver have been used as a form of money. While not commonly used as money in modern economies, they can still be considered a store of value and a hedge against inflation.
8. Gift Cards and Vouchers: Prepaid cards or vouchers issued by specific stores or businesses, allowing the holder to spend a specific amount in that particular establishment.
9. Barter: Though not traditional money, bartering involves the direct exchange of goods and services without using money. It is still practiced in some communities and specific situations.
In personal life, individuals use various forms of money for day-to-day transactions, savings, and investments. The specific forms of money used depend on factors such as location, level of economic development, personal preferences, and technological advancements. With the rise of digital payment systems and the increasing popularity of cryptocurrencies, the landscape of money continues to evolve.
Note : If you are struggling with Financial & Money management , please register for my free webinar to get more insight on it.
Please register in the link below -
https://manojchandrasekhar.com
Thanks & Regards
Manoj Chandrasekhar
Founder of Wealth Management Hub
Financial Transformation Coach
