why do we need money and why is it so important to people?

Answer 1

Here is a more fundamental answer. Money was one of the great inventions that enabled civilization to develop. No economy could possibly evolve beyond a crude, primitive stage without money, and no economy in history ever did. Along with the invention of agriculture, money was the key to enabling economies to become productive enough that people could rise above a state of primitive poverty. You can be assured that every invention you see in your life that is representative of the modern world would never have been possible without money.

Now the reason for all this is that money abstracts value-creation from tangible objects, making it easy to store value and exchange it for things you need. This new ability in turn enables people to focus on doing things that create value for others. And very importantly it facilities the exchange of information as to what other people do in fact need, how much they need of it, and how badly they need it. (A monetary system is definitely a communications network.) These things are all critical to an economy more productively serving peoples' needs.

Answer 2

Used to be that trade was accomplished with the barter system, and goods were traded for different goods or services. When people began to specialize, money was developed to provide a common means of valuing products.
Over the years, it has developed as a means of defining people into different classes and levels of importance.
Not really any different than when you were considered well off if you had more goats than that poor guy down the road.

Answer 3

Because when there's money people have reason to work and do something, not just getting everything without moving a muscle. And with money, those who cant grow or make stuff themselves (people at sea, need to buy vegetables), can get them elsewhere in a more appropriate deal.

Its so the Government would have workers to build the nation without complaint.

Answer 4

currency is the bartering system gone more complex, rather then direct object to object transitions we assign value to things, then assign value to our currencies. This is at least an attempt to have people get a fairer deal in our trades, rather then trading 2 lamps that may or may not work for that bag of groceries, we exchange set value of money for that bag of groceries. Hope this helps out a little.

Answer 5

It is important to me because if I don't pay my mortgage, I will lose my home. If I can't pay my water bill, I can;t take a shower or cook. If I can pay the electricity bill, I can't read watch TV or spend time on the computer. If I can't pay the gas bill, I will freeze to death this winter. If I can't afford to gas the car, I can't get to the doctor. You must live at home with your family. Otherwise you would not be asking this question.

Answer 6

So the ^ssh0les of the world would have a way of measuring the value of the people around them. The richer they are - the more important they are.....Didnt they teach you anything in Econ 101?

Answer 7

If the barder system would still be around, we would not need money, till then, cash and carry, like the saying goes, cash talks BULL walks

Answer 8

we need money to buy things such as food, clothing and other goods. Without money...we wouldnt be able to get those and die. or if money did not exist. those wud not exist. because u resources to make these, and u need to buy those resources, they wont give it u for free...furthermore NOTHING IN LIFE IS FREE. in a business perspective.

Answer 9

how else did you pay for this computer to ask this question?
how else i am going to eat? i need money for that. i don't plan on farming any time soon.