The very informative book gives a brief history of the development of money and explains how it is used in our economy. Follow the movement of money - in earning, saving, spending and giving - in a clear and simple way. Terms such as interest, saving, and credit cards are explained. In addition, learn how money - both paper and metal - is made. The currencies of other countries are also identified.
Interested in using this resource in your classroom? Check out the posters that go along with this book: Trade & Money.
What are some goods that you often buy or would like to buy?
Answers will vary
How do people typically pay for the goods they buy?
With money! This is often in the form of cash, a check, or a debit card. (Credit cards are not really money. Credit cards provide you with a loan, which you must pay back with money.)
A long time ago there was no money. How did the people pay for goods?
They bartered with each other, trading potatoes for cloth, fish for meat, firewood for animal skins, etc.
When do people trade with each other, who gains from the trade?
Both parties expect to gain from voluntary trade. Voluntary trade is not a zero sum, "win-lose" event.
Why is barter often difficult?
You have to find someone who wants what you have and vice versa. Also, it is sometimes difficult trading items of greatly differing values - like the cow for a coat in the story.
What is money?
Money is anything commonly traded for goods or services.
What were some of the earliest forms of money?
Shells, beads (wampum belts), lumps of salt (Africa); beans (Mexico), huge stone rings (Yap Islanders), red feathers (Santa Cruz islands), metals such as gold, silver, copper, and iron.
What is the primary function of money?
It helps people to trade.
What are two other primary functions of money?
Unit of account (helps people measure value of products), store of value (helps people to save)
Why were gold and silver commonly used as money?
These metals were relatively scarce/valuable, did not wear out (durable), could be made into different sizes (divisible), and were fairly easy to transport (portable).
Why did people often prefer to use paper notes instead of gold and silver coins?
The metal coins were big and heavy.
Name the currency used by five different countries.
Answers will vary. The currencies could be the pound from England, the peso from Mexico, the euro from Italy, the yuan from China, the yen from Japan, etc. See pages 18-19.
How are the dollar bills and the coins produced?
The dollar bills are printed on special paper with ink and secret chemicals, engraved with hundreds of thin lines, marked with tiny red and blue threads in the paper, etc. Coins are cut from strips of metal, then punched with a design.
What are different ways to receive money?
Work to produce a good or service, receive money as gifts, get an allowance, etc.
What do people typically do with their money?
Specific answers will vary. There are three basic things that people do with their money: spend, save, or give it away (friend, church, charity, etc.).
What is the major purpose of a bank?
Banks help transfer money from savers to investors/borrowers. Banks pay interest to savers, but charge a higher rate of interest to borrowers.
Extra Credit Question: The basic United States M1 money supply is made up primarily of what kind of money?
Checking accounts! (also known as demand deposits).
Author: Melvin and Gilda Berger
Grade Level: K-4
Accelerated Reader Level/Points: .5
Publisher: Ideals Childrens Books