Primary History Labs Template: Grade 3

Primary History Labs Template: Grade 3

Name: ______Date: ______

Essential Question: What are the characteristics of money?

Source 1 Bartering and Money

Source 1 Bartering and Money

Long before money was used, people would barter. They exchangedgoods and services to meet their needs. For example, a shoemaker might have traded a pair of shoes for some chickens from a farmer. Adoctor would provide medical services to a tailor who wouldpay him back with some clothing. Bartering worked most of the time, but what if the shoemaker did not need chickens? Would the farmer not be able to have new shoes? Bartering was not a perfect system but it was an early form of exchange for goods and services.

In time, in countries all over the world, money was made and used.
At first, different items such as shells, wheat, silver and goldwere used as money. Later on, countries began to make currency in the form of paper money and coins. Each country developed its own system of currency. It became easier for people to buy and sell goods and services.

Using money improved the exchange of good and services because people understand and accept its value. When bartering, people could disagree on the value of merchandise or services. Sometimes,this made it difficult to get what they needed. For the farmer and the shoemaker, it may not have been so easy to determine a fair exchange between chickens and shoes. Since money can be divided into smaller values, giving change helps to make these exchanges smoother. After all, giving change from a ten or twenty dollar bill is easier than trying totrade just one shoe!

Source 2 The Characteristics of Money

Source 2 The Characteristics of Money

What makes money special? We can spend it, save it, and work to earn it. When we need a new book or a haircut, we trade money for them. But, there is more to learn and understand about money. Four characteristics about money areimportant to know – it is recognizable, divisible, portable and durable. Do you know what these terms mean?

First, money is recognizable. People know a dollar bill, a quarter or other unit of money because money is uniform. For example, bills have the same look and size. Since money is recognized, then it is accepted as a reliable means of exchange. Another important characteristic about money is that it is divisible into smaller amounts. A dollar can be divided into four quarters, ten dimes, twenty nickels or one hundred pennies. We can effortlessly make change when paying, making it easy to pay for goods and services.

A third characteristic of money is that it is portable. We can take money around to use it whenever we need. The size and weight make it easy to carry. Think about the barter system used before money existed. If trading a cow for bushels of wheat, neither are easily carried around. Lastly, money is durable, it lasts a long time. This is important because it changes hands or circulates among many people. Bills are made of a strong paper that does not tear easily and coins are solid. Consider the barter system again. A farmer’seggs could quickly get old or break. Fortunately, this does not happen as easily with money because it is made to last.

The characteristics of money are good reasons why our money system is successful. People and businesses can easily trade goods and services because money is recognizable, divisible, portable and durable.

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