Question How did people trade in the past without money?
Before money was invented, people used… Bartering
Problems with Bartering Fixing a rate of exchange Finding someone to swap with Double coincidence of wants = two people can barter when they both want the good that the other person has. Trying to save
The Functions of Money A medium of exchange No need for double coincidence of wants A measure of value Helps to avoid fixing prices of goods and services in terms of all other goods and services. A store of value Allows people to save in order to make purchases at a later date. In times of inflation, money will fail to be such a good store of value. A means of deferred payment
Money Sense ‘Money makes the world go round?’ Do you agree or disagree with this statement? Why?
Money Sense ‘Money doesn’t bring happiness’. Do you agree or disagree with this statement? Why?
Money Matters Money matters! It affects the life choices we make. Money is … a form of energy that tends to make us more of who we already are, whether it’s greedy or loving. By Dan Millman, athlete and author
What Makes A Good Money? Get into groups and discuss which of the items below would make a good money. Record the views and present your arguments to the class. Mountains Cheese Cigarettes Gold
What Makes A Good Money Acceptability – Everyone accepts it. That’s why our present money is a token money – a piece of paper or metal coin worth much less than the face value printed upon it. Durability Portability Divisibility. E.g. a whole car is worth much more than two halves. Hence, we divide money into smaller values. Scarcity
References Clifford, T. (2009). Money through the ages. Vero Beach, FL: Rourke Publishing LLC. Einspruch, A. (2011). Money sense. Managing money. South Yarra, Australia: Macmillan Education Australia Pty Ltd. http://www.historyforkids.org/learn/economy.mone y.htm http://library.thinkquest.org/C004203/economic01. htm http://www.pbs.org/wgbh/nova/moolah/history.ht ml