Money's worth
Topic: Money: From Barter to Digital Currency · NCERT: Class 6, Ch 13 "The Value of Work"
Meaning
Money's worth is the value a person places on an object, based on the benefit or use they get from it. It is personal, so two people may value the same thing differently. Prices stated in money allow us to compare this worth across very different goods. That is why people talk of "getting their money's worth". It means feeling that the benefit received matches the price paid.
Example
A student pays ₹500 for a book that helps them clear an exam. The student feels they got more than their money's worth. Another buyer who never reads the same book may feel it was not worth ₹500.
Don't confuse with
- Purchasing power of money: money's worth is the personal value of an object to a buyer. Purchasing power is the amount of goods one unit of money can buy, and it depends on the price level.
Related concepts
- Money
- Functions of money
- Medium of exchange
- Unit of account
- Purchasing power of money
- Store of value
- Standard of deferred payment