Money started with people trading things they needed. Imagine you have a lot of apples, but no bread. You trade your apples for someone else’s bread, that’s bartering. But what if you want something from someone who doesn’t want your apples? That’s when money came in handy! Money is like a special item everyone agrees has value. It makes trading easier because instead of swapping apples for bread, you can just swap apples for coins.
Examples
- Your mom gives you money so you can buy a new book.
- You give coins to a bus driver to ride the bus.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · money,history of economics,barter system