Lesson 8 – Tangible and Intangible Money – PFL.1(G)

Money is generally known as a medium that can be exchanged for goods and services and is also used as a measure of value.  Money can be divided into two types.

  • Tangible and
  • Intangible

To find out what these mean we first have to look at each word separately.  Dictionary.com defines the term tangible as something that is real, capable of being touched, substantial and material.  This means that in order for money to be tangible it has to be in your possession and it must be in the most physical form.  For example, tangible money would be the actual bill and coins that you carry with you.

Intangible means something that is incapable of being touched and exists only in connection with something else.  This means that intangible money still has a value, you just cannot physically touch that value. Examples of this include you bank balance, cheques that you deposit, equity, stocks, bonds, accounts, etc.

The vast majority of people see money as only tangible.  When it’s in our wallets or purses, it’s real yet when its on paper, like a share certificate or bricks and mortar is NOT real, even though it’s part of our asset base which forms a very big part of our compounding wealth growth.

This tangible aspect of money can make us irrational.  If a stranger took $50 bucks out of our wallet, we potentially could get in a fight with them, yet if the value of houses in a street or suburb go down by $10,000 in a month we barely react at all. Just because no one knocked on our door and demanded $10,000 in cash, we just accept it.

In the end remember, tangible is physical and can be touched. Intangible Money has a value that is there, but cannot be touched.

Assignment:

Tangible vs. Intangible Collage

Using magazines and other picture from the internet you are going to make a collage that illustrates the difference between the two concepts that we learned today.  You will research different examples of both tangible and intangible money and provide a rationale for each of them.  Here are your steps:

  1. Take an 11 X 17 piece of paper, make sure it is horizontal and divide it in half and label one half tangible, the other half intangible.
  2. Find examples of the two and find pictures that support your research.
  3. Cut out the pictures and/or words and label them with a number starting at 1.
  4. On the back of the paper or on a separate piece, write the number and provide a rationale as to why you picked those pictures.

Evaluation:

CATEGORY 4   (100 – 90) 3   (89-75) 2   (74 – 60) 1  (59-below)
Specific Words and Images All words and images are related to the topic and make it easier to understand the author’s perspective. All words and images are related to the topic and most make it easier to understand the author’s perspective. All words and images relate to the topic. Words and images do not relate to the topic OR
Design Graphics are trimmed or cropped to an appropriate size and interesting shape and are arranged well, some in front and some behind. Care has been taken to balance the pictures across the collage. Graphics are trimmed or cropped to an appropriate size and interesting shape and are arranged with some items in front and others behind. The collage however does not appear balanced. Graphics have been trimmed or cropped to an appropriate size and shape, but the arrangement of items is not very attractive. It appears there was not a lot of planning of the item placement. Graphics are untrimmed or not cropped OR of inappropriate size and/or shape. It appears little attention was given to designing the collage.
Technical Construction The collage shows considerable attention to construction. The collage is exceptionally attractive in terms of design, layout, and neatness. The collage shows attention to construction. The collage is attractive in terms of design, layout and neatness. The collage shows some attention to construction. The collage is acceptably attractive though it may be a bit messy. The collage was put together sloppily. The collage is distractingly messy or very poorly designed. It is not attractive.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s