Understanding the Basics of Financial Literacy

2025-09-16

What is Money? 💰

This is one of the core concept each human should learn and as soon as possible. Now a day, Financial Literacy is being recommended for school learning.

The idea is the earlier you learn this, better off you would be in life.

Money is more than just paper used for paying bills or numbers on a screen — it’s a tool that powers everyday life.
Understanding money is the first step toward financial literacy.

We will go through the learning in a step-wise manner. Lets start...

🔹 What is Money?

• Medium of Exchange → Lets us trade goods and services without bartering.
• Store of Value → Can be saved and used in the future.
• Unit of Account → Provides a standard measure for value.

👉 Example: Imagine buying groceries. Without money, you’d need to trade apples or some other thing you have for 1 packet of bread. Money makes this simple.

💡 Why Understanding Money Matters

1. Helps you make smarter spending decisions.
2. Protects you from falling into debt traps.
3. Provides the foundation for wealth building.

✅ Just 3 Tips to get started

• Track your daily expenses using an app or even on notebook or diary.
• Build an emergency fund.
• Learn about interest rates and inflation.