Money as a Store of Value: Definition & Overview

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  • 0:01 What Is a Store of Value?
  • 0:29 Conceptual Framework
  • 1:45 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
Money presents many advantages for economic development. In this lesson, you'll learn about how money can store value, as well as learn of other commodities that act as stores of value as well.

What is a Store of Value?

Money is a type of asset in an economy that you can use to buy goods and services from other people or businesses. One of the functions of money in an economy is that it serves as a store of value. A store of value is something that people use to transfer purchasing power from the present to the future. While money is an asset that can store value, it's not the only type. Gold and silver, for example, act as stores of value.

Conceptual Framework

The ability for people to store value is fundamental for the functioning of a modern economy. Since money is accepted as a store of value, trade is much more efficient because money is accepted by nearly all people in the economy as a store of value. When an individual or business accepts money in exchange for a good or service, the seller can store the money, such as in a bank account, and retrieve it later to purchase a good or service in the future.

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