What Is Money: Master or Tool?

Before the lesson, think about this question:
What is money—a purpose or a means to achieve your goals?

Money is something we all use, but how we view it can be very different.

For some, it is the ultimate goal: a symbol of success and security.

For others, it is simply a tool—a way to buy experiences, support loved ones, or invest in the future.

In today’s lesson, we explore money’s role in our lives, its impact on decision-making, and the vocabulary you need to talk confidently about personal finance in English.

📖 The Many Faces of Money

Money has existed in many forms—shells, coins, paper, and now digital currencies like Bitcoin. But while its form changes, its purpose remains the same: to exchange value.

For most people, money comes from income earned through work or business. Some choose to put money away every month to build a safety net, while others prefer to spend it on travel, hobbies, or life’s little luxuries.

When used wisely, money can grow through investment in stocks, property, or businesses. However, poor planning can lead to financial trouble. If you spend more than you earn, you may find yourself in the red—owing more than you have. On the other hand, being in the black means you have more assets than debts.

Borrowing money is common. You might borrow from a friend, take out a loan, or use a credit card. Big purchases like a house often require a mortgage, which is repaid in monthly instalments. Student loans help people get an education, but they must eventually be paid off—often with added costs from the interest rate.

Financial planning can also mean protecting yourself with insurance—whether for your health, home, or car. Many people now use budgeting apps to track every transaction and make sure they don’t overspend.

At the end of the day, money itself isn’t good or bad—it’s what you do with it that matters. For some, it’s the key to freedom; for others, it’s a source of stress. The question is: how do you want money to work for you?

🧠 Vocabulary Builder

All the words below appear in bold in the reading text above.

Operations with money:

• borrow – to receive money from someone with the intention of paying it back

• lend – to give money to someone expecting it to be paid back

• put (something) away – to save money for future use

• pay off – to finish paying back a debt

• invest – to put money into something to make a profit

Finance-related words and phrases:

• investment – money put into something to make a profit

• instalment – one of a series of payments for something

• loan – money borrowed from a bank or person that must be paid back

• insurance – an arrangement to protect against loss or damage

• interest rate – the percentage charged on a loan or paid on savings

• student loan – money borrowed to pay for education

• mortgage – a loan for buying a house

• income – money earned from work or investments

• transaction – an act of buying or selling

• stock – shares in a company

• be in the black – to have more money than you owe

• be in the red – to owe more money than you have

✅ Reading Comprehension Quiz

True or False?

• Being “in the black” means you owe more money than you have.

• Instalments are single large payments made for a product or service.

• An interest rate is the percentage you pay on a loan or earn from savings.

• Student loans do not have to be paid back.

• Putting money away means saving it for the future.

Answers:

• False

• False

• True

• False

• True

💬 Discussion Prompts

• Do you think money brings happiness? Why or why not?

• How do you decide whether to save or spend?

• Have you ever invested money? Was it successful?

• Do you prefer paying by cash, card, or digital payment? Why?

• What is one financial goal you want to achieve in the next five years?

📊 Interesting Facts & Stats

• According to the World Bank, over 1.4 billion adults globally still have no access to a bank account.

• The first paper money appeared in China during the Tang Dynasty in the 7th century.

• Sweden is on track to become the world’s first completely cashless society.

• More than half of Millennials say they prefer investing in experiences (travel, events) over material possessions.

• In Japan, 80% of transactions are still made in cash despite advanced technology.