The big ideaBarter swaps goods for goods. Coins make trading easy for everyone.
How it works
Long ago there were no coins at all. People swapped, which means handing over one thing and getting another.
Swapping goods for goods is called barter.
Barter only works when each person wants what the other has.
A coin is worth the same to everyone, so everyone takes it. That makes trading easy.
Why Ben got stuck.Barter or a coin.
Example 1: Ana and Ben swap
Ana has grain and wants fish.
Ben has fish and wants grain.
They swap grain for fish.
That is barter.
Example 2: Ben and Cy get stuck
Ben has fish, and he wants new shoes.
Cy the shoemaker wants eggs, not fish.
Ben has no eggs, so he cannot swap.
Swapping only works when each person wants what the other has.
Example 3: A coin fixes it
Ben sells his fish for a coin.
He takes the coin to Cy and pays for new shoes.
Cy takes it because the coin can buy eggs from anyone.
Nobody had to want fish.
Example 4: Is it barter?
A snack for a snack between friends is barter.
Paying a coin for a snack is money, not barter.
A gift with nothing coming back is not barter either.
Words to know
swap
To hand over one thing and get another.
barter
Swapping goods for goods.
coin
A small shiny piece that everyone agrees to take.
Watch out
Barter needs both people to want what the other has.
Paying with a coin is not barter. A coin is money.
A gift is not barter, because nothing comes back.
Barter did not stop: friends still swap cards and snacks.
Try it
Ana swaps her grain for Ben's fish. What is that called?
Why would Cy not take Ben's fish for shoes?
What did the village agree to use?
Is paying a coin for a snack barter?
Answers: 1. Barter · 2. He wanted eggs, and Ben had none · 3. A coin · 4. No
Try at homeWith a grown-up, think of something you could swap with a friend, like a sticker for a sticker.
For grown-upsAsk your child what they have swapped with a friend, like stickers or cards. Did both children want what the other had? Talk about why one money that everyone takes makes trading easier.
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