I'm really not sure how I could have been clearer in the game, but money for new equipment is gained by visiting the treasurer in the throne room and selling the items that you gain from monsters. When you get your initial funds, the treasurer explains this. Another way to get better equipment is to take your Star Fragments that you gain each time you relight a star to the blacksmith on the right hand side of the town. This can be discovered either by talking to the blacksmith, or talking to the man outside of the blacksmith (who complains that the blacksmith won't make him anything because he doesn't have a star fragment.)
Balance was exactly as I meant it to be. It's supposed to be a challenge. You're supposed to have to think about your party composition and which skills to use. I find that many of those who have complained about balance expect to simply charge through the game mashing "Z." Each class is unique. The Star Knights are tanks, Laura is a healer, Fitz is a support character that makes bosses die really easily if used properly, Leah is a spell caster and elemental damage dealer that is great for crowd controlling random encounters once you recruit her. The hardest part of the game SHOULD be the first dungeon, when you haven't really developed your skills. After that, your characters should be around level 5, and totally dominating anything they come against provided you are careful about how you use your skills (especially not wasting your MP, which is limited specifically to force you to think about how much you're using.)
Dialogue... I really didn't mean to make dialogue repetitive. I suppose some things would be that way, though, if you're doing a lot of grinding.