What is money?
Let’s find out where money comes from, what it’s made of, and why it matters to you.
It didn't start with dollars...
A long time ago, there was no money, no coins, no bills, no apps.
People got what they needed by trading: shells for salt, cocoa beans for clothes, or grain for tools. Everyone had to agree on the value, such as five shells for a sack of rice.​
But this system had a big problem.
What if you wanted salt, but the salt seller didn’t want your shells? Trades often fell apart because people didn’t always have what the other person wanted.
To fix this, communities started using currency—special items like metal coins or carved stones that everyone agreed had value.
With currency, trades became simple, and buying and selling could finally grow into the money system we use today.
So what gives currency power?
We do. A dollar bill is just paper and ink—but it works because everyone agrees it has value.
Instead of trading goods directly, we trust that our government’s currency represents a certain value, which makes buying and selling simple.
Think of it like this:
If you give someone a $5 bill for a slice of pizza, the pizza shop accepts it because they know the next person will also accept that $5 bill.
Money works because we all believe in it together—and that belief keeps our whole economy moving.