What is Money?

Cash, Greenbacks, Moola, Dead Presidents, Bucks…we call it many different things, but by definition, money is anything commonly accepted by a group of people for the exchange of goods and services. Simply put, it is a medium of exchange. When we think about money, we think about the metal coins and paper bills we use today. Our current monetary system dates back to 1877 when the United States Treasury was created to supply a uniform system of currency. However paper money in general is known to exist since 1300AD, and there is evidence of coins dating back as early as 5000 BC. Now that’s old!

Is there another way to pay for goods and services without money? What about trading one good or service for another? This is called bartering. Have you ever bartered? If you have ever traded baseball cards or stickers, then you have bartered. But what happens when you have a card or sheet of stickers to barter that no one else wants? This is why money is a good idea. Everyone likes money!