What affects money?

Money is like a special kind of cookie that people use to buy things they want or need.

Supply is like how many cookies are in the jar. If there are lots of cookies, each one isn’t as valuable, it's easier to get a cookie than if there were only two. That means money might be worth less.

Demand is like how many people want those cookies. If everyone wants a cookie but there aren't enough, people might have to trade more of their favorite toys or snacks for a cookie. That makes the cookie, and the money, more valuable.

Sometimes, new cookies are added to the jar, like when a bakery makes more. Other times, people take cookies out to buy things, like candy or games. These changes can make the value of each cookie go up or down, just like how the value of money changes over time.

Also, if everyone starts using a different kind of cookie, say, chocolate chip instead of sugar, it might affect how much each one is worth too!