How Did Money Become Digital?

Imagine you have a piggy bank full of coins. One day, instead of taking out coins to buy candy, you just tap your phone on a machine and get the candy. That's how digital money works, it's like magic coins in your phone!

The Magic of Digital Money

Instead of carrying real coins or paper bills, we use apps and cards that let us send and receive money instantly. Banks and companies help make this possible by connecting our phones to the money world.

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Examples

You tap your phone to buy a soda machine instead of using coins.
Your mom sends you $10 through an app so you can buy lunch.
You use a card at the store and get candy without handing over cash.

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Categories: Economics · Digital Money· History of Finance· Technology and Economy · Text is available under the Creative Commons Attribution-ShareAlike License.