Why Does Everything Cost Money? 6 Valid Reasons

Everything Cost Money

Well, not everything in the world costs us money. For example, we don’t pay a dime for the air we breathe or the solar energy we receive from the sun. However, we have to pay money for goods that are produced by people. Like we pay money for food, clothes, medicine, education and many more and the main reason these things require money is; money is energy and people convert money into things they need.      

  • Money is used as payment for goods and services and repayment of debts
  • Money is a means of exchange and only money can match the worth of other products
  • With money you can legally own anything
  • People show different interest for free and paid things

6 Valid Reasons Everything Cost Money

Valid Reasons Everything Cost Money

There are many reasons available, why everything costs money. Below are 6 valid reasons that will give you a clear idea why we need money for almost everything.

1. Money is a Means of Exchange

2. Money can Match the Worth of Things

3. We Value Things we Splash Money on

4. Money Allows you to Own Things Legally

5. Money is a Motivating Factor

6. Encourage Steady Production

1. Money Is A Means Of Exchange

This is one of the main reasons why everything costs money. If you want to have something that you don’t own or you don’t have then you have to get it by exchanging some valuable thing for it. Here, money is the medium of exchange and with money, you can get anything. For example, if you are hungry then you can get food by exchanging some money. It’s the same thing between a teacher and a student. A teacher has knowledge, experience, and the student uses the money to receive some valuable lessons from the teacher. So, here you are getting the time, knowledge, and expertise of a teacher in exchange for money. Similarly, if you want to buy medicine then you have to exchange them for money.     

2. Money Can Match The Worth Of Things

Everything in the world has value and if you want to own a valuable thing then you have to provide something that will match the value of the product. For example, in club football teams buy and sell players to form the club. Here, players have a specific value that the club has to pay if they want that player to play for them. The club has to pay the market value of that player. So, it’s not just football, everything in the world that is precious has value and it will cost you money. Another example of a valuable thing is gold. People put their lives on the line to mine the gold because of its value. An ounce of gold will cost you 1,800 U.S. dollars and when you pay $1,800 you will be able to own an ounce of gold. So, things with value will cost you money.

3. We Value Things We Splash Money On

Usually, people don’t appreciate or show interest in free things. For example, people show different intentions towards free training and a paid training. People become more serious in paid training because they have paid money for that training. Similarly, you have bought a new shirt with money and a relative of yours gifted you a shirt; hence which one will you treat with more care? Of course, you’ll value the one you bought with your money. So, money increases the value of various things in our life. If we would get everything free in our life then life would become meaningless.

4. Money Allows You To Own Things Legally

Money is the only thing in the world that will give you the power/authority to own any valuable things legally. For example, if you visit a mobile showroom and take the most expensive mobile and then try to walk away without paying then the security guards and management of that store will catch you and tag you as a criminal for stealing the mobile. On the other hand, if you would have paid money for the mobile then you will be able to make your way out of the store without anyone embarrassing you. Exchanging money for products makes you the rightful owner of that item.

5. Money Is A Motivating Factor

Money is the biggest motivating factor in the world. Everything in the world is for money and people do things to earn money. For example, we buy foods from various grocery stores which were cultivated by someone. The reason for someone to cultivate food is to earn money to buy things that they require like clothes, medicine, etc. If farmers would get clothes, medicine, or other items for free then they wouldn’t produce foods and we won’t be able to buy food. So, the whole balance of the world would interrupt.          

6. Encourage Steady Production  

The need for money encourages and continues the steady production of all types of goods. For example, if a person spends money to create a product and gives them out free then don’t expect that person to produce the same product repeatedly. Here, the person will run out of cash to purchase materials or pay the workers. Instead, if the person takes money for the products then he/she will be able to continue his production, purchase materials, and pay the workers.

FAQs About Why Does Everything Cost Money

Why Do We Pay Money For Everything?

We pay money for everything because money is the social contract for exchange. Everything in the world has value and we need to pay the value to own anything. Here, money is used to determine the value of various things, services, goods, etc. and we use the money to pay the value of things that we need. 

Why Has Everything Become So Expensive?

There are many reasons everything becomes more expensive. Some common reasons for increased living expenses are increased consumer demand, a rise in wages, a spike in other costs, etc. 

What Is It Called When Things Get More Expensive?

If things get more expensive then it is known as Inflation. There are many reasons that might cause Inflation which results in increased living expenses.

Do You Think Money Is Everything?

Well, if you think deeply then you will realize that money is the ultimate power that is ruling the world. There is nothing in the world that you can get/afford without money. The more money you have the more powerful you are and you can do anything with your money. So, yes money is everything.

Why Can’t Everything In This World Be Free?

There are many reasons everything in the world can’t be free and the main reason is producing anything requires money. You will have to buy materials and pay the workers to produce various products. Therefore, you have to sell your products for money to earn money and continue the production process.


1. https://thefreebieblogger.com/why-does-everything-cost-money/
2. https://www.businessinsider.com/things-that-used-to-be-free-but-now-cost-money-2018-2

Last Updated on October 18, 2022 by Magalie D.

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