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LESSON
PLAN: WHY MONEY WAS INVENTED
Lesson
Summary
The bell is
ringing - here comes Mr. Bear’s ice cream truck! Join the
Green$treet$ Kids as they try to get some ice cream from Mr. Bear. In
the process they learn all about trade and money. Topics include why
people trade, why trade is sometimes difficult, the history of money,
characteristics of money, and different types of money. Do they end
up getting the ice cream?
Concept: Trade and Money
Definition: People TRADE (exchange) with each other
to get the goods and services they want. To make trade easier,
people use MONEY.
Comprehension Questions:
At the
beginning of the story, why was Short Cut trading so much?
He
wanted the things the other kids had (yo-yo, striped skate laces, popcorn)
more than the items that he had.
Was he
successful at trading? Explain why or why not.
He was successful at
trading for the yo-yo and striped skate laces, but he was not successful
trading for the popcorn. This was because Buck didn’t’ want his
squished sandwich!
What must
be true for a trade to take place?
Each person must want what the
other person has and be willing to trade for it.
Why
couldn’t the kids get any ice cream from Mr. Bear?
Mr. Bear didn’t
want to trade – he wanted money. Small Change had some money, but it
wasn’t enough.
What do we
now use to help us to trade?
Money!
What is
another name for “trade?”
Barter, exchange
What were
some of the problems with barter?
Items spoiled and were difficult
to transport.
When
people traded, did they always agree on prices?
No! People
haggle when they trade. They try to get the best price
possible.
What
things did people use as the first kinds of “money?” Why didn’t these
work?
Shells, beads, feathers. Shells cracked, feathers flew
away, and beads rolled away. (To be effective, money must be scarce,
divisible, portable, and durable.)
What kinds
of metals did people begin to use as money?
Gold, silver, bronze,
copper, iron, lead, tin
What was a
problem with using pieces of metal as money?
It was necessary to
weigh each piece when a trade was made. (People sometimes used
dishonest weights in these transactions! See Proverbs
11:1)
What did
people do to avoid the problem of accurately weighing pieces of
metal?
They made the pieces into coins of uniform weight and size,
stamping them for certification.
Why is
paper used as money?
It is easy to carry, can be divided into any
denomination, and can be reproduced easily. (However, because it can
be reproduced easily, inflation can be a real problem. Monetary
authorities must be very responsible in determining how much money to
create.)
How did
the Green$treet$ Kids finally get their ice cream?
They worked to
earn money to buy it! This is the main way people get money – through
work.
Other
Concepts: Scarcity, Goods and
Services, Specialization | 
