Imagine you own a lawn-mowing business. identify the main function of money exhibited in each situation below.

a. you swipe your debit card to purchase gasoline for your lawn mower: (medium of exchange, unit of account, store of value)
b. you stuff your earnings from mowing lawns into a piggy bank: (medium of exchange, unit of account, store of value)
c. you pay your friend cornelius $5 to you mow lawns: of exchange, unit of account, store of value)
d. you calculate your net earnings for the year on your tax return: (medium of exchange, unit of account, store of value)
e. you determine how much value your new lawn mower has added to your business: (medium of exchange, unit of account, store of value)

A.) Medium of exchange - Here money is used for doing transaction and therefore, this example is under the medium of exchange.

B.) Store of value - Here, a person store or deposits his money into a bank and therefore, this shows the store of value characteristic of money.

C.) Medium of exchange - Here, one of my friend utilize money for helping me mowing lawns which shows that money is used as a medium of exchange.

D.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his net earnings for the year on the tax return in terms of money.

E.) Unit of account - The unit of account characteristic of money is reflected here because a person easily calculated his new lawn mower value.

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cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.