What is money, really?

Before money, people traded goods directly: rice for cloth, a goat for tools. This is called barter, and it only works when both people want what the other has.

The three jobs of money

• Medium of exchange: you can swap it for almost anything.
• Store of value: you can save it today and spend it later.
• Unit of account: it lets you compare prices, like ₹40 tea vs ₹120 coffee.

Money comes in many forms

Coins and notes are only a small part. Most money today lives as numbers in bank accounts and moves through UPI, cards and net banking. It is still real money, just digital.

Earning, spending, saving

Every rupee you earn can be spent, saved or invested. Learning to balance these three is the heart of personal finance.