This document provides an overview of a 6th class financial education textbook. It covers the following topics: the history of barter systems and the evolution of money; the differences between needs and wants; the importance of requesting bills for purchases; an introduction to domestic and foreign trade and the benefits of trade; the importance of saving money; the different types of taxes and why paying taxes is important.

1. Financial Education
Class VI

2. Contents
1. History
• Barter System
• Evolution of Money
2. Civics
• Needs and Wants
• Bill/ Cash Memo
3. Geography
• Trade
• Benefits of Trade
4. English
• Radha and the Frog
• Grandfather’s Coins
5. Mathematics
• Taxation
• Nurturing the Money Plant

3. Barter System
 The exchange of goods
and services by one
person in return for
goods and services
from another person is
called barter system.
 This system existed
when there was no
money.
 Difficulties existed
under the barter
system; like double
coincidence of wants.

4. Evolution of Money
 People were engaged in barter.
 The goods to be exchanged were not
necessarily of the same value.
 It was also difficult to store goods,
particularly perishable ones like fish.
 The discovery of metal solved many of these
difficulties and it begun to be used as money.

5. Long evolution process
 Small metal pieces, with fixed weight and
value and bearing an official seal appeared
in 6th century B.C.
 Predominantly gold and silver were used to
mint coins.
 During the Mauryan period copper was also
used to mint coins.
 King Sher Shah Suri issued a silver coin and
termed it as ‘Rupiya’. The word is said to be
derived from the Sanskrit word ‘Rupya’
which means a coin of silver.

6. Rupee as we see today
 The earliest issue of rupee in the form of
paper currency was by the Bank of
Hindustan.
 After independence, followed by accession of
princely states to the new union, Reserve
Bank of India issued Indian National Rupee
(INR) notes on behalf of the Government.
 Indian rupee now has a universally
recognized symbol since the year 2010.

7. Symbol: Major Currencies

8. Needs and Wants
 Needs are things that we must have in order
to survive - things we truly can’t be without.
 Wants, on the other hand, are things that we
would like to have, but that are not
necessary for survival.
 Some needs and wants don’t cost any money
at all: like air. Many needs and wants,
however, cost money.
 You should cater to your needs first, before
you can buy the things you want.

9. Ask for a bill
 A bill offers protection and benefits to both
buyer and seller.
 If you don’t have the bill and the item you
have purchased turns out to be faulty, you
lose the right to complain.
 Some shopkeepers on their own won’t insist
on giving you a bill as they want to avoid
paying taxes.
 Every time you make a purchase or make
any payments ask for a bill.

11. What is Trade?
 Transfer of goods and services from one
person or entity to another in exchange for
something is called trade.
 Broadly, there are two types:
 Domestic trade
 Foreign trade
 Trade within the geographical boundary of a
country is called domestic trade.
 Foreign trade happens between two or more
countries.

12. Benefits of trade
 Opportunity for trade arises because:
 A country can produce goods at a lesser cost than
the other.
 Also, a country can produce goods which the other
country is unable to produce.
 In our country, Punjab is known for wheat
farming where as Kerala predominantly
produces rice.
 Farmers in both these states have developed
expertise in their area of farming.
 If Kerala needs wheat, instead of doing
wheat farming it can buy wheat from Punjab
or can exchange it with rice.

13. Importance of saving
 In simple terms, savings is not spending
money.
 Put aside a part of the money you have now
for future.
 You don’t need a large amount to start
saving.
 Put a little money aside regularly and it will
grow.
 You must spend less to save more.
 Saving will help you meet unexpected money
requirements in future.
 You can also set a goal and save for it, like
buying your favorite book or toy.

15. Types of taxes
 Tax is a fee charged by the government on
income or price of a good.
 If tax is charged on income it is called direct
tax and if it charged on the price of goods
and services its known as indirect tax.
 Have you wondered from where government
gets money to spend on building roads and
bridges, parks, schools, hospitals, etc.?

16. Why do we need to pay taxes?
 Our government has the responsibility to
improve the standard of living of our
citizens.
 They need money to build roads, hospitals,
parks and bridges etc. in our country.
 Taxation generates this revenue which is
used for all the above mentioned purposes.
 By paying taxes responsible citizens help
their country grow and develop.

17. Thank You
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