Welcome to Module 5 – Spending Money. Do you ever wonder what you can do with the money you earn? Maybe you want to buy something fun, like a new game or a trip to the movies. Or maybe you need something important, like clothes or medicine. Either way, it’s important to understand how to manage your money responsibly.

Money has three important functions: it stores value, it’s a unit of account, and it’s a medium of exchange. This means you can use it to buy things you need and want, and it’s impossible to live without it in our society.

It’s okay to spend money on things you want, but it’s important to make a plan for your spending. Sometimes companies try to convince us to spend more money than we should through advertisements. It can be hard to resist, but by learning how to budget, you’ll have a clear idea of how much money you can spend on the things you need and want.

So whether you’re saving up for a big purchase or just want to learn how to manage your money, understanding budgeting and personal finance is key to living a happy and fulfilled life