What are cash-based systems?

A cash-based system is like having a piggy bank that you use to keep track of your money when you're shopping or playing games.

Imagine you have 10 candies in your pocket, and you want to buy a toy that costs 4 candies. You take out 4 candies from your pocket and give them to the shopkeeper. That’s like using cash, real things you can touch, instead of counting points on a screen or something invisible.

In a cash-based system, people use actual money, coins, bills, or even candy, to pay for things they buy. There's no need for computers or apps; just simple counting and giving.

If you have 10 candies and spend 4 on a toy, you now have 6 left in your pocket. That’s the same as having $10 and spending $4, you’re left with $6.

Some places use cash-based systems because they're easier to understand and don’t need special tools. It’s like playing a game with real toys instead of imaginary ones, everyone can see what’s happening, and no one needs a magic wand or a screen!