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Spending Money Part 1

Spending money

During the past few weeks, we have discussed the first component of financial literacy, earning.

The next segment we will explore is spending. By this point, you should be aware of where your income derives from and how much of it is disposable/available to use for whatever you desire. In a perfect world, all our money would be disposable and never-ending.

Who doesn’t like to spend money? That is its purpose, correct? Wrong. In and of itself, money has no real value. It is as valuable as we make it to be. Money’s purpose is not for frivolous spending,

“Money derives its value by virtue of its functions: as a medium of exchange, a unit of measurement, and a storehouse for wealth” (Beattie, 2020).

Daryl Singleton
Daryl Singleton

Now that we have a general understanding of money, let’s look closely at its function.

Spending money should be a well thought-out process. A process that affords you the ability to use it as a tool and not a precious possession. Spending can “be regarded as complementary to personal saving, investment spending, and production in an economy” (Investopedia Staff, 2020). In layman’s terms, spending money is/should be the perfect way to increase your overall value.

You may be reading this and thinking, “that makes no sense,” and you are correct. In this current mindset, it is insane. However, it would be best if you let go of the current definition of “spending.” Money is not spent; it is used. The value lies in what you are gaining due to using it as a point of exchange. Are you exchanging it to grow your savings, assets (anything with value) and fuel the economy so that you can make more?

It’s the idea of your money should be making money for you. If your money is not making money for you, it is not that you don’t have enough. But could it be that you don’t budget well? Good budgeting and planning are the bedrock of good spending. Budgeting is just planning how you will spend money so that you able to meet your financial goals. During the next seven days, please take a moment and seriously consider your monetary objectives, write them down.

Next week we will be taking a closer look at budgeting so that you can reach those goals. Let’s build!

Staff, I. (2020, December 30). Consumer spending definition. Retrieved February 25, 2021, from

Beatie, A. (2020, July 17). The History of Money from Barter to Banknotes. Retrieved February 25, 2021, from