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Description- A medium of exchange is an intermediary instrument or system used to facilitate the purchase and sale of goods and services between parties.

Real world example- Using cash, credit cards and mobile payment such as Apple Pay, cash ap or PayPal

Pros-

Easy to buy and sell things

Everyone knows and accepts it

faster than trading stuff

Cons-

If money loses value, it buys less

Fake money can trick people

Doesn’t always work in every country

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Description-Money can be saved and used later without losing all of its worth.

Real world example- Puting coins or bills in a piggy bank to buy toys or games

Pros-

You can save now and spend later

Keeps value better than food or goods that spoil

Cons-

Prices can go up

If lost or stolen savings are gone

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Description- Money is used to measure and compare the value of things.

Real world Ex- A video game costs $50 and a toy costs $25

Pros-

Makes prices easy to understand

Helps compare value of different things

Cons-

If money changes value prices gets confusing

Different countries use different money

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Price tags with dollar signs ($5, $10, $20) on different items.

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Description- You get paid every hour

Pros-

More hours= more money

Good for part time jobs

Cons-

If you don’t work you don’t get paid

Pay can be low for some jobs

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Description- You get a set amount of money each year no matter how many hours you work

Pros:

Steady, predictable paychecks

Often comes with benefits

Cons:

Might work extra hours without extra pay

Raises may be slow

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Description- Extra money given by customers for good service (like in restaurants)

Pros:

Can earn more than your wage if tips are good

Reward for working hard and being friendly

Cons:

Not guaranteed some days tips are low

Depends on the mood of a customer

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Description- You’re your own boss and get paid per job, not per hour

Pros:

Freedom to choose work

Can earn more if successful

Cons: No benefits

Must pay your own taxes

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Description- Money you get from owning shares of a company

Pros:

You make money without working

Can grow if you invest in good companies

Cons:

Not guaranteed every year

Depends on company profits

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Description- Money you can make when you sell something for more than you bought it

Pros:

Can make big money if prices go up

Doesn’t require constant work

Cons:

Risk of losing money if prices go down

Taxes may be high

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Description- Digital money you can trade or invest in

Pros:

Can grow fast if value goes up

Works worldwide, not just one country

Cons:

Very risky value goes up and down a lot

Not everyone accepts it as money