Purse can refer to two different things:

1. A small bag, usually carried by women, for holding money, keys, phone, and personal items. In Britain, people might call this a handbag, while Americans use both terms. Your mom might search through her purse for her car keys, or keep her wallet tucked inside it. Purses come in countless styles, from tiny clutches barely big enough for lipstick and a credit card to large shoulder bags that hold half your life.
2. A sum of money, especially one offered as a prize or collected for a specific purpose. In boxing or horse racing, the winner receives a purse, which is the prize money for the competition. When people say “control the purse strings,” they mean control over spending decisions. A town might collect money for a new playground, and neighbors would contribute to the public purse.

Purse can also be a verb. To purse your lips means to hold them tightly closed.