Is that i cannot spend my money from paypal?

i believe, you can still spend your money from paypal if you don't have credit card attached or without upgrading the account. you can ask for money transfer to any us bank from your paypal account in free of cost, you can ask for check too, you can also do your shopping from those sites who accept paypal.

You have to have a credit card or bank account linked to your Paypal account so you could transfer the money that you receive in your Paypal account. Just follow the instructions, not hard.

I am also not sure and I am also a bit lost about it and cannot help you much

You can't receive money on any paypal account unless it is verified with a credit card (their buyer protection policy I believe) but you can send money and withdraw to your bank account (across the world, my account is UK)