Money

1.Why do we need money

      As a society we need money  as everyday conversation. There are several reason why we need money, first is to purchase the goods and services. Society need the money to consume the goods that we need in our daily life such as buying food, necessity goods for living. Then money as a transaction to buy some properties, for example, house, car, land. Other than that, we can use the money for paying in bills and paying in rents.

     Next, is we need money to make a saving in bank. Why we save money in the bank? It is as our future  use and also to make sure our money more secure from dangerous. Other than that, we also need money as study expenditure. We also saving money in the bank for emergency uses such as to recover from natural disaster like flood and for unforeseen emergency like falling sick. Nowadays, saving money in the bank is to overcome financial problem in the future.

   Lastly is we need money as a speculation. In terms speculation, we invest some money to purchase bonds or government securities in stock market. One benefit the money as speculation is making some invesments in some financial institutions to get some profit from interest or divident. Other than that, we invest money to buy precious goods like gold when it’s price falls and selling it back when it’s price rises to get more profit. We also using money to buy life insurance.