What is Money?

Money is a mode of payment accepted by both sellers and buyers for goods and services. Money is what we give in return when we buy stuff like food, clothes, house, groceries, etc. 

BARTER

Before people used money, they did barter, or traded things they had for the things they wanted. The history of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia tribes. For example, a person may have traded five goats for one cow. Rule for barter is: Each person had to agree that the items being traded had an equal value. Give and Get, that's barter.

Cowry Shells

Many years ago, cultures worldwide used different items to represent money. 

In China, about 3000 years ago, cowry shells were used as currency.

Coin

The earliest evidence of coins used as money can be found in ancient Greece. Soon after, many other cultures began making their own coins. These ancient coins were usually made of precious metals such as gold, silver, copper, bronze, and often featured images printed on them.

Paper Money

It is believed that the Chinese were the first people to begin using paper money. Paper use made it a lot easier for the Chinese merchants to “carry” their money. 

Even though we refer to non-coin-based money as paper money, it wasn’t always based on paper. Some cultures used different materials, such as cloth or leather, as an easy-to-carry

Money Nowadays..

Today, online payments are one of the most popular ways to pay. Most of us don’t even use paper or coin money. With online payments, you can simply tap or swipe and get charged. In our digital era, economic transactions regularly take place electronically.

Credit card

Credit allows people to pay for stuff even when they don’t have the money right now. So, instead of buying things with your own money, you will borrow the money from another person, usually a bank, promising to pay it back at another time. It’s pretty cool, but pretty dangerous.

When you use borrowed money (also known as credit) to buy something, you will eventually have to return the money. It’s kind of like borrowing a book from a library. Every time you take a book, you make a promise to the library to bring it back after an amount of time. Same like credit card.