2. Key Words
Self-sufficient
Specialization
Division of labour
Bartering
Double coincidence of wants
Deferred payment
Token money
Face value
3. What is Money?
Bills and coins
Used to exchange for goods or services, or to pay a
debt
4. Why Do We Need Money?
We are not self-sufficient.
The need for specialization and exchange.
Specialization was the first step towards a wealthier
society.
Division of labour = Specialization
11. Problems with Bartering
Fixing a rate of exchange
Finding someone to swap with
Double coincidence of wants = two people can barter when
they both want the good that the other person has.
Trying to save
12. The Functions of Money
A medium of exchange
No need for double coincidence of wants
A measure of value
Helps to avoid fixing prices of goods and services in terms of
all other goods and services.
A store of value
Allows people to save in order to make purchases at a later
date.
In times of inflation, money will fail to be such a good store of
value.
A means of deferred payment
13. Money Sense
‘Money makes the world go round?’ Do you agree or
disagree with this statement? Why?
14. Money Sense
‘Money doesn’t bring happiness’. Do you agree or
disagree with this statement? Why?
15. Money Matters
Money matters!
It affects the life choices we make.
Money is … a form of energy that tends to make us
more of who we already are, whether it’s greedy or
loving. By Dan Millman, athlete and author
16. What Makes A Good Money?
Get into groups and discuss which of the items below
would make a good money. Record the views and
present your arguments to the class.
Mountains
Cheese
Cigarettes
Gold
17. What Makes A Good Money
Acceptability – Everyone accepts it. That’s why our
present money is a token money – a piece of paper or
metal coin worth much less than the face value
printed upon it.
Durability
Portability
Divisibility. E.g. a whole car is worth much more
than two halves. Hence, we divide money into
smaller values.
Scarcity
18. References
Clifford, T. (2009). Money through the ages. Vero
Beach, FL: Rourke Publishing LLC.
Einspruch, A. (2011). Money sense. Managing
money. South Yarra, Australia: Macmillan
Education Australia Pty Ltd.
http://www.historyforkids.org/learn/economy.mone
y.htm
http://library.thinkquest.org/C004203/economic01.
htm
http://www.pbs.org/wgbh/nova/moolah/history.ht
ml