DEVELOPMENT OF MONEY
FOR GRADE 8
BY LIHLE KHANYILE
Just as humans have evolved –
money has evolved.
First it was Barter
Then leather money
Most money today is paper money
Barter is when people trade or exchange (swap) goods for
other goods without the use of money, like for instance
trading seeds for apples.
Barter trade continuing
In the beginning, barter trade was the way of life.
It is a system people used to satisfy their needs and
Bartering predates the use of money. As a matter of
fact, money derived from bartering.
Commodities was the basic term of money and things
like tea, salt, cattle and seeds among others were used
for the exchange
Became the first medium of exchange.
Shells prototype of money.
For the reason that barter was unfair
‣After the use of shell the first mental money was
developed and introduce.
‣The coins had holes in the middle so that they
could be carried on strings, making it easier to
control large sums of money.
After the introduction of the first mental money, sliver
coins where introduced.
They were imprinted with the faces of emperors and
gods to show the value.
The after other metals started being used such as
bronze and gold.
leather was used as banknotes.
They were made form deerskin.
Beginning of paper money
Paper money was developed after all the other medium of
exchanged where introduced one after the other.
up to this day notes (paper money) is used as evidence of
ability to pay.
As money has changed over the years and today we
have coins and paper notes.
Value has also started to change too.
Definition of money
A medium that can be exchanged for goods and services
and is used as a measure of their values on the market.
Medium of exchange (item accepted for exchange)
Store of value (value stored over time)
Unit of Account (common measure of
Advantages of money
Portability (easily transported)
Durability (lasts when handled)
Divisibility (divisible into smaller units)
Limited Availability ( available in limited supply.
In the future coins and notes may be taken over by cards or even better
microchips in jewelry that can just be scanned.
Considering the advantages of money as compare to the
other forms of medium exchange used previously, one
can understand the reason why money has lasted longer
than the others.
This is the reason why the government only make a few
E.g South African notes now have Mandela’s face.
Johnson, K. N (2014). The history of money. http://www.slideshare.net/Kaynijo/the-
bac072105342&v=qf1&b=&from_search=1#btnPrevious accessed 06/03/2014
SDU (Strategic Dynamics International). (2013). The history of money.
Vita, A. (2011). History of money.
a85e-46a1-985b-e4072ac473b5&v=default&b=&from_search=4 accessed 06/03/2014
Worthington, C. (2011). History of money.