Money 101: Understanding the Basics of Money
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Money 101: Understanding the Basics of Money
Shams Bardan
Money Lessons
Your friendly guide to mastering money fundamentals
Welcome! If you want to get better with money but don’t know where to start, you’re in the right place. This article will walk you through the basics — with quick quizzes, helpful tips, and easy examples anyone can understand.
What Is Money?
Money is anything that people widely accept as payment for goods and services. It’s not just paper bills — it can also be:
Digital balances in your bank
Mobile money
Even cryptocurrencies like Bitcoin
Quick Quiz: What counts as money?
Choose all that apply:
Answers at the bottom
Why Do We Use Money?
Before money, people traded cows for rice, or shoes for sugar — called bartering. But bartering had problems: What if the other person didn’t want your cows?
Money solved that by being:
A common method of exchange
A way to measure value
Something that can be saved for the future
The Three Main Functions of Money
Types of Money You Should Know
Budgeting Activity: Plan Your $1,000!
Imagine you have $1,000 this month. Here are your expenses:
🏠 Rent: $400
🍽️ Food: $250
🚌 Transport: $100
💰 Savings goal: $150
Question: How much do you have left for other things like fun, clothes, or emergencies?
Write it down and think about what you’d prioritize next month!
Income, Expenses, and Savings — Explained Simply
Income: Money you earn (job, gifts, side hustle)
Expenses: Money you spend (rent, food, entertainment)
Savings: Money you keep aside for future needs
Why Saving Is Important
Saving money gives you:
A backup during emergencies (like car repairs or hospital bills)
Confidence to chase goals (like a trip, phone, or education)
Financial freedom — less stress about the future
Free Budget Starter Kit (Printable!)
Want to take control of your money starting today?
Download our Free Budget Starter Kit — designed to help you:
Track monthly income and expenses
Plan savings goals
See where your money goes
Build better habits
📄 Click here to download the kit (Pdf)
Perfect for students, beginners, or anyone who wants to get their finances on track.
Final Tips to Remember
Track where your money goes — every dollar counts
Spend less than you earn
Set savings goals and stick to them
Avoid debt when you can
Review your budget at the end of each month
Quick Quiz Answers
✅ Cash
❌ Credit cards (They let you borrow money, not money itself)
❌ Gold jewelry (Valuable, but not commonly used to buy things)
✅ Bank account balance
✅ Bitcoin (A form of digital money)
If this guide helped, share it with a friend — and don’t forget to grab your Budget Starter Kit to begin your financial journey today! 💪💰