Money in the Real World

How Money Works in the Real World

When you get out on your own, you will need to use money to pay for important bills, such as your house, car, electricity, and water. Money is used as a way for people to get the things they want and need in life. Here is a look at how money works on a day-to-day basis.

Earning Money

Kids doing chore In order to have money, you have to earn it. For most people, that means getting a job and working for a paycheck. When you are younger, you may do chores around the house to earn money as an allowance. As you get older though, you may take on a paper route or work at a restaurant to earn money. The harder you work, the more money you will earn. Now you will have more to spend or save.

Spending Money

Once you’ve decided enough money is saved, you may choose to spend it. This means that you will give it up in exchange for something you want or need. Money can be spent in many ways, such as at stores, over the internet, sent through “snail” mail, tapping your smart phone at a register, and even sent by email. Any time you use your money to get something in return, you are spending it. That’s why it’s important to save money early so you always have enough.

Alternatives to Money

If you do not have the money to pay for an item, you can sometimes trade for it. This means that you give a person something you already have in exchange for something he has. If you want John’s bike and John wants your scooter, you could trade each other so you’re both happy. A trade is also called a barter.

Kids riding tricycle and scooter