Money is one subject that we cannot stop learning about. This collection of did you know facts about money is inspired by the need for financial information among young people. With more knowledge about money, young people can make better financial decisions, and therefore enjoy better quality of life.
Money is a subject that is sorely lacking in educational context; business studies, financial accounting, and commerce do not properly cover the subject of money.
Money should be taught as a subject on its own, with an emphasis of how to manage it, multiply it, and spend it responsively. Social media has created an illusion that people can spend more than they earn, and get away with it. It does not work like that.
100 Mindblowing Facts About Money
1. Our Ancestors Survived Without Money
In the old days before our modern times, our ancestors practiced trade by barter. Which means people brought whatever excess produce they had, and exchanged them for whatever items they needed.
2. Money Has Evolved Over Time
In Africa, money started as cowries, while in other places it started as animal skins, gold, and then paper. When paper money was invented in china, it was issued by banks as a security showing that the bearer had gold stored in the bank vault.
3. Money Continued To Be Backed By Gold
In most advanced countries money was printed according to the store of gold kept in the vaults of the central banks. However, the US President Richard Nixon ended the parity with gold in august 1971.
4. Money Has Different Values In Different Countries
A curious thing about money is that different countries’ money have different exchange rates. This is based on the stability of their various economies. Stronger economies have stronger currencies, and weaker countries must build their economies to have stronger currencies.
5. Money Takes Different Forms
Money is not only printed paper issued by the bank. Gold is still a globally accepted means of exchange. Salt is still used by the nomadic tribes in Ethiopia, and so on.
For Something To Qualify As Money It Must Have Some Qualities
6. Money Is Divisible
Money must be something that can be divided into smaller units. That is what makes commerce possible. Smaller units should be used to exchange for smaller quantities of goods.
7. Money Should Be Portable
Money should be portable; that means it should be easily carried around. This is important because it will need to be exchanged in commerce, and sometimes people need to travel to carry out commerce. Furthermore, in times of war, people need to be able to carry their wealth with them.
8. Money Should Be Durable
One of the main reasons why money was developed was the need to preserve value for as long as possible. When our ancestors practiced trade by barter, a lot of their value was lost to wastage. Cowries can last for many years, and gold too can last forever.
9. Money Should Be Scarce
Money should not be something you can get easily. It should be available but not abundant. When something is too abundant it loses value. For example; sand. Would you exchange your laptop for a cup of sand?
10. Money Should Be Authentic
This means it should not be copiable. If someone could get a pen and paper, and just made his own money, then all money would soon become valueless. It would no longer be scarce, and no longer be trusted.
11. Nigerian Naira Once Weighed More Than The Dollar
Nigerians will find it hard to believe, but as at 1980 the Nigerian Naira was actually more valuable than the US Dollar. It was a series of devaluations, borrowings, and bad investments, coupled with corruption that brought the Nigerian currency so low.
12. Queen Elizabeth II Appeared On More Money
Queen Elizabeth II was the person to appear on the most bank notes in history. She appeared on banknotes in England, Canada, Australia, Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, New Zealand, Cyprus, and so on.
13. Early Romans Used Salt As Money
Early Romans used salt as money, it was used as payment to workers who then exchanged it at the market for whatever they needed. That is where the expression “worth his salt” comes from, and that is also where the word “salary” comes from.
14. Paper Money Was Invented In China
Paper Money Was Invented In China in the 7th century. It was a legal tender that could be used for buying and selling, but was backed by copper which was the main currency of the country at the time.
15. Every Bank Used To Print Their Own Money
Every bank used to print their own money, which is how it had been since money was invented in China. At that time, money was considered a security; it represented a deposit of gold or copper that was stored with the bank. The holder of the paper could borrow against it, or use it to make purchases.
16. People Study Money
The concept of money changes over time, and some people dedicate their lives to studying money. The study of money is called numismatics.
17. The Ink On Money Is Unique
Maybe that goes without saying; otherwise people would just go around looking for it so that they could print their own money. They cannot find that ink anywhere, it has a special texture that allows it to print and emboss the paper at the same time. It does not peel off or fade, but may have color changing properties.
18. Crypto Is A New Form Of Money
This is something that happens rarely, but the world is witnessing the adoption of a new form of money. Cryptocurrency (especially bitcoin) is a new form of money being created in this day and age. It is still early days, and there is still a lot to do before it scales through, but it is already being used as a means of exchange.
19. It Takes Money To Print Money
Have you ever wondered why there are dirty, defaced, and torn banknotes in circulation? That is because it costs a lot of money for the government to print new money. Furthermore, that expenditure can lead to other consequences on the budget, and can lead to an oversupply of the currency, leading to inflation.
Monetary Facts on Inflation
Inflation is something that is common in the news. It means a reduction in the spending power of the money. It is mostly observed in the rise in prices; meaning that people can no longer afford to buy things with their money. Most countries have rising inflation, but stronger economies can manage it using both monetary and fiscal policies.
20. Economists Argue That Inflation In Intrinsic
Economists argue that money is bound to lose value over time because it is not a real thing. Economists who hold this view usually quote a popular saying by Voltaire which says: “Paper money eventually returns to its intrinsic value- Zero.”
21. Fake Money Can Be Used As An Economic War
Some countries can sabotage the economies of others, especially during war by counterfeiting the enemy’s currency, and flooding the market with the fakes. This was employed during World War I, and presently is being carried out by North Korea against America.
22. The Piggybank Is From The Middle Ages
It is not clear when exactly clay safes for children came to be shaped like pigs, but the name goes back to the Middle Ages. These days they have become quite popular in Africa, are gradually replacing the wooden safes which have been in use for centuries.
23. Banks Are Not Quite Safe
In the past, people had complete trust in banks. However, the financial ecosystem has changed so much, and now banks are very vulnerable to stock market and housing shocks. As the markets become increasingly difficult to predict, so also can banks go burst quite easily.
Luckily though, most governments have some offices in charge of taking over any bank that fails, and so depositors are usually protected.
24. Learn How To Budget
Learning how to budget has been identified as the first step towards financial stability. Unfortunately, this generation has almost completely ignored this rule; instead they spend impulsively. That means many young people are on their way to becoming poor. Avoiding poverty therefore means planning before spending. Budgeting is an important part of being financially disciplined.
25. Financial Literacy Is Key
Unfortunately, money as a subject is not being taught in schools, and even at home most parents are completely ignorant about it. Research has shown that when more people have financial literacy, then more people can retain wealth. When more people can retain wealth, then the country’s wealth increases.
26. Debt Is Necessary For Growth
Businesses and individuals can grow through debt; it is a means of getting fresh capital which can be invested into equipment, machinery, expansion of business premises or stocking of their businesses with goods.
Access to debt has been described as one of the important factors that support economic growth. However, please ensure that the loan is for something meaningful and profitable. Loans come with interest rates, and stiff penalties for defaulters.
27. Debts Can ruin A Person
While debt is a necessary step in personal growth and business, too much of it can lead to financial ruin. Debt can do more harm than good, especially when a person takes too much of it. Furthermore, when a person takes a loan without using the money for something that can generate income, the result is often ruin.
When a loan is not paid on time, the interests can accumulate, sometimes surpassing the original debt. When that happens, the defaulter can have valuable assets taken away from him. Furthermore, one may no longer be able to access future loans. That can ultimately lead to ruin.
28. A Culture Of Saving Money Can Reduce Debts
As mentioned earlier, financial literacy is key to making progress. This is a key fact of money which has not been taught to young people. Instead of spending money on the latest gadgets, on clothes, and other mundane things, young people must learn to save.
When people save money, then they will not need to take so many loans. Furthermore, even when loans are necessary, they may not need to take out huge loans because they already have some money at hand.
29. Having Money Can Give Peace Of Mind
When one has some money at hand, there is less reason to fear or panic, and one can easily take care of matters that may arise. That gives one peace of mind. Furthermore, having money can enable one to quickly take opportunities that may arise.
30. Saving Money Early Can Produce Wealth
Especially when a person starts saving early, and has a steady stream of income, it can be surprising how much a person can save after a few years. That implies that a person is committed to the idea of saving money, and has the advantage of consistency.
Saving money can also give one the opportunity to invest in assets that can increase in value, or can generate money; therefore increasing the chances of the person making more money.
31. Spread Your Risk
Professional investors continue to advise people to spread their risks. “Risk” in terms of investment means whatever speculative investment a person puts money into, with the hope of getting returns for that investment.
Spreading your risk means not putting all your eggs in one basket. Instead of that, one should invest in several different assets, so that even if some of the assets do not pay off, the investor will still make a profit from those investments that do pay off.
32. Engage Professionals
When investing money, it is important to know that there are professionals in every field. There are professionals in stock investing, real estate investing, and every other type of investing. One must understand that investing is quite risky, but when one engages professionals, the risk of making loses is greatly reduced.
Therefore, it makes financial sense to engage a professional when looking to make investment decisions. The consultation is not free, but in the end it is very well worth it.
33. Insurance Is A Protection
In many developing countries, the insurance sector is not fully developed. That is true of our country. Nevertheless, insurance can offer protection from unfortunate events which can threaten to wipe off one’s assets, or to affect one’s source of livelihood.
Those events may be outside one’s control, but can still have huge, negative impact on a person or business.
With insurance, one can get compensation when those events happen. Insurance is therefore a price you pay now against an unexpected calamity in the future.
34. The Surest Way To Have More Money Is Not A Bigger Salary
This one will come as a huge shocker to most young people. They expect that having a job with a bigger salary will result in them becoming rich. In fact, a job with a bigger salary will make one more comfortable, but it rarely translates into a more money in the account.
This is because more money only reinforces existing spending habits. What that means is that one can afford more of the same lifestyle one is already used to. People who earn more generally spend more, and if they were not saving anything before, they usually continue saving nothing after the huge salary increase.
35. One Must Protect One’s Credit Rating
In the country today there are many loan apps fighting for attention. It is easy to find oneself borrowing from these apps, which is not wrong by itself. However, any time a person borrows from any financial institution, it is important to ensure that one pays back.
One’s credit rating is the information about one’s loan history. It may not look important now, but in the event that one urgently needs money for something important, and goes to a financial institution to obtain a loan, one may be unable to get said loan.
36. One Must Continue To Learn About Money
Financial literacy is a lifelong project. One must never imagine that one has learned enough about money, or that one knows everything there is to know about money. The dynamics of money is ever-changing, and the financial landscape is not constant. Therefore, it is important to keep up to date with the trends in investing, and finance.
37. Invest For The Long Term
Especially as one is not an investing professional, the best way to invest money is to put it in long term assets. Research has shown that long term investments usually perform better in the long term than short term investments. Therefore, rather than trying to take advantage of volatility in prices, it is usually a better plan to find investments that can yield for the long term.
38. There Are Lots Of Currencies
There are about 170 different currencies in the world today; and that is a lot of value in paper form. Yet, most of the individual wealth in the world is not held in paper money; it is held in assets like real estate, gold, stocks, and so on.
39. Monopoly Money Is More Abundant
Despite the huge amount of paper money available, there is more monopoly money available in the world. In fact, more and more monopoly money is being printed every year, meaning that more people are interested in monopoly.
40. Monopoly Teaches Money
Some argue that monopoly teaches more about money than all the books and article on the subject. Monopoly is a board game; one that teaches real world applications of money, and how money is used to purchase assets which in turn produce money.
41. Money Is Dirty
There is more bacteria in money than you will find in your toilet. This is because money exchanges hands everywhere, even in the toilet, and is used by all kinds of people, including those who have no hygiene.
Therefore after handling money, it is important to wash your hands, especially before eating.
42. ATMs Are Global
There are ATMs in every continent of the world. They are present in almost every major city of the developed world, and most of the developing world. ATMs show that money is very important in the world.
43. Do You Play The Lottery?
Looking at the lottery it seems that most people have some sense. The lottery is actually played by only around 5% of the population. Most people do not believe that they have any chance of winning. They are right about that; the odds of winning the lottery are 1 in 300 million.
44. Have You Heard Of A Cash Cow?
In today’s parlance, Cash Cow means anything of value that brings in regular income. That term actually started out as literal cows because initially, livestock was the most stable source of making money.
45. The Most Expensive Joyride Is Space
Jeff Bezos spent $5.5 billion to go to space for 4 minutes. That is a ridiculously huge amount of money which could buy 3 to 4 luxury yachts, to holiday like a king in the Mediterranean. Interestingly, space travel is becoming an industry of its own; drawing in many rich people who are lining up to spend huge amounts of money for this experience.
46. Our Country Is In A Lot Of Debt
Theoretically, debt is a good thing if it is used to purchase or build capital assets; things that could generate money. That is the basic fact of money that was mentioned earlier, as something that young people should learn.
But what happens when the debt is not used for revenue generating assets but is wasted or looted?
The result is what we have today. Financial trouble. To get out of it, the people in charge of the economy are going to increase taxes on purchases, which means that things will get expensive, leading to more suffering for the people.
This collection of did you know facts about money is field with important information about money. It is believed that this lack of information accounts for much of the financial troubles that are suffered by young people in the world today.
When people understand the value of money, then they can preserve wealth, which means the country in general will have more money going around.