Why Do We Have Different Kinds of Money?

Imagine you're playing with toy coins in a piggy bank, some are shiny, some are old and rusty. Just like that, different kinds of money help people trade things more easily. Coins, paper bills, and even money on your phone all work the same way: they let us buy what we want, but each has its own special job.

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Examples

  1. A coin is like a tiny piggy bank you can carry with you.
  2. You can use your phone to buy candy at the store without needing change.
  3. Grandma gives you paper money for your birthday so you can buy more toys.

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Categories: Economics · money· currency· economics· types of money · Text is available under the Creative Commons Attribution-ShareAlike License.