"What kind of an entity is money?"
Money is not an "entity" with any physical properties. It is a "unit of measure" we use to denominate pricing of real entities and services. In most modern economies money creation is a monopoly held by the sovereign state and is self-funding when created.
By demanding its own currency to settle tax obligations the currency-issuing state assures that it will always be able to provision itself without needing "revenue" from any other source. If you owe the state a debt in its currency you are effectively made unemployed until you can satisfy that obligation and subject to whatever punishment the state prescribes for non-payment.
"Both needs and wants are reduced to just one thing, money. This seems more of a doomed strategy for life. A baby doesn’t need money. It needs love."
This falls into the issue of distribution of the state's currency and is not a fault of the currency itself. The baby in question depends upon its parents and society to provide that love, which means that those parents and the general society must be given sufficient resources to allow for the care and development of the baby so it will become productive in the future and able to provide for the next generation's needs as well as sustaining itself.
Recognizing this intergenerational relationship and providing for it as "common welfare" is a responsibility of any civilized society and a good measure of the quality of a society. This requires money to accomplish, but cannot be measured by money alone. Only the results of the money spent can determine if such spending was wise or not. America leads the world in "money" accumulation but falls far short of such leadership in results.
"Our only challenge is the matter of “how will you make money.”
When money is seen as a scarce commodity that must be obtained in a trade for one's time and productivity those who hold more money have power over those who hold less. A society that misrepresents the role of money is doomed to be at the mercy of its wealthiest members and will pass its dysfunction onto future generations. Money cannot be a commodity or it loses its value and denies the natural role of a government, which is to provide for the common welfare of all of its members. In a modern economy that has all resources needed available to it, any suffering that can be mitigated with money by even one of its members is entirely a political decision and not economics.
