The meaning of money is often misunderstood. People think that money is simply a medium of exchange, but it is much more than that. Money is a store of value , a unit of account, and a means of payment. People can use money to buy goods and services, but they can also use it to save for future purchases. Money allows people to make choices about how to use their resources. It is a tool that people can use to make their lives better. The value of money comes from the fact that it can be used to buy things that people want or need. Money is valuable because it is scarce. There are only a limited number of dollars in circulation, so each one is worth more than the one before it. The value of money also comes from the fact that it can be used to buy things that people need. People need money to pay for food, shelter, and clothing. They also use money to buy other things that they want, such as cars, TVs, and vacations.