Even if we don't always act like it, we know "money doesn't buy happiness". According to Jonathan Clements of
The Wall Street Journal,
"We think more money will make us happier and yet studies suggest Americans are no more satisfied than they were three decades ago, when the standard of living was much lower."
Additionally, if we believe what we read in the papers,
lottery winners are often in worse circumstances (personally and financially) after winning the lottery than they were before. With that said, just what is the big deal about money? Without question, it holds enormous power over us. It drives our thoughts, ambitions, actions and daily lives. The question is why - why does money matter?
I'll admit that this SEEMS like an easy question to answer...until you actually try to answer it! It is not easy to narrow the answer down to a single component. Neither is it my intention to do so. Instead, I offer 7 reasons why money matters at all.
1. Money (and the possession of it) is a requirement for participation in our society.
It is the basis of our society and there is no way to operate without it. That is not to say that money (currency) as we know it cannot change and evolve. It is merely to acknowledge that we have to earn and possess some amount of money (currency) to function in the world as we know it.
2. Money allows us to purchase the things we need for survival.
At the most basic level of survival, we need food, shelter (including utilities) and clothing. Money is what allows us to acquire and maintain these things, even when we have nothing else.
3. Money promotes comfort in our daily lives.
Beyond our necessities, money is the tool that allows us to enjoy comfort in our life. We use money to enhance the food, shelter and clothing that we HAVE to have into things that we WANT to have.
4. Money establishes the boundaries we operate in.
Like it or not, the amount of money that we have access to (including our ability to obtain credit and accumulate debt) defines the boundaries that our lives are lived in. Money does not dictate whether or not we can move between levels of boundaries that apply to differing amounts of money, but it defines what those boundaries are at any given level.
5. Money illustrates our values and beliefs.
Very simply, when you see what someone spends their money (and their time) on, it paints the most accurate picture possible of what they value and what they believe. Although it is not directly connected, our knowledge of money is part of this equation as well. The way(s) that we spend our money reflect what we know and understand about money. Based on recent research about basic economic knowledge, we are not ignorant where money is concerned. In
an August article in the Washington Post, it was reported that
"60% of high school seniors know that lower tax revenue and higher spending increase the national debt..."
6. Money measures our productivity.
In our society, money is generated from work. People are paid to do work that needs to be done. The level (or amount) of payment is, although not always an accurate one, a measure of how productively a person performs the job they hold. In some cases, the level of payment is seen as a measure of worth. From a basic money perspective, worth and productivity are not the same thing. Perhaps most importantly here, though, is how an individual views his/her level of payment. If THEY equate amount of payment with personal worth of themselves, others will judge them by that single number as well. Chances are, the issue of what we are paid versus what we are worth is more significant in the male world than in the female world since it is generally acknowledged that money is more important to men than it is to women.
7. Money secures our future.
Certainly, we are not given any guarantees about our future. Because of that, money is security (a known quantity) amid all the other unknown quantities that lay ahead of us. In the future, when we face health crises, investment fluctuations, natural disasters and any number of other unfortunate, unforseen circumstances, money is what will provide us with the flexibility and capability for handling those setbacks.
