We hear more and more about financial literacy, and therefore more and more about money. This raises the question: why is it important to talk about money?
When I founded AESS – Associação Economia Solidária e Sustentável (Solidarity and Sustainable Economy Association) in 2013, one of the questions I often asked myself was whether the topic I wanted to work on, and for which I was betting on a change in my professional career, was really a necessity, or whether I was just following my intuition and sticking to something that many said was just a passing fad. After all these years, I am glad I followed my intuition because it turned out to be a real necessity.
But before delving deeper into the subject, it is important to highlight some basic concepts, such as the definition of currency. Currency is defined as an asset that combines three basic functions: medium of exchange, store of value and unit of account.
And what does each of these functions mean?
It is a medium of exchange because money is intended to be exchanged for goods and services that satisfy the needs and desires of individuals and families.
The Value Reserve relates to the condition of financial reserves, where money can be saved for future use, with the possibility of preserving its value. When you save money, the goal is to spend it in the future.
The Unit of Account refers to the fact that goods, services, credits or debts can be expressed in numerical form as a certain amount of money.
Example: a house is for sale for €X, a haircut costs €X, someone is owed €X by another person, etc. This function is also related to the Means of Exchange function, because when something is established as having a relationship with an amount of money, it is because that thing can be exchanged for money.
However, the essential function of money is really to serve as a medium of exchange for the acquisition of goods and services, which is why it is so important to talk about it and, more importantly, to talk about how it is managed. Money makes the world go round because the economy is based on money, and every day, even without realising it, we spend and use money.
Só uma gestão equilibrada do dinheiro de que dispomos regularmente nos trará também uma vida mais saudável e equilibrada em termos financeiros.
But when we talk about money, it is also important to talk about financial happiness and financial balance.
Financial happiness differs from person to person and is related to each of our dreams, goals, values, beliefs, and priorities.
On the other hand, Financial Balance is a business management concept that has been adapted to personal finances to identify the adjustment between what we receive and what we spend!
If I spend more than I earn, I will be in debt and will have to find ways to pay off that debt sooner or later. If I spend less than I earn, I will have a surplus and can save for something I want, or put it aside to spend later, or for any eventuality that may arise.
A concept that I have advocated since day one is that of #financiallyhealthycitizens. But what does this ‘big word’ actually mean? When we are ill or have symptoms of illness, we go to the doctor. More and more, a healthy lifestyle is being promoted to prevent the onset of illness and visits to the doctor. It's the same with money. When we are financially ill, we consult specialists to help us solve our problems. If we learn to manage money, we will avoid financial problems and ‘visits’ to specialists.
When we are financially stable, we are satisfied with what we have and want to keep things as they are or improve what we have.
On the other hand, when we are financially unbalanced, we feel tense and uncomfortable because we cannot satisfy that need or desire. It is at times like these that we express our behaviour and start making various decisions (not always the best ones) to end that tension.
In summary, talking about money is important, I would say increasingly important, because the financial choices and decisions we make in the present (today) determine our future (tomorrow)!!!
#cidadaofinanceiramentesaudavel
English 
Portuguese