East Exchange
You scratch my back…and I’ll give you a dollar.

Money is everywhere, and it plays a role in just about everything you do. But why are pieces of paper and discs of metal worth anything at all?

Money is different from plain paper because it represents value. Before the world had money, people traded goods they had, or services they could offer, in exchange for goods and services they wanted.

But trading sometimes became complicated when one person had something to trade, but nothing he or she wanted to trade it for. And when the goods they were trading could rot or spoil, waiting to trade wasn’t really an option.

What was missing was a way to save the value of what was traded until the trader was ready to spend it. So money was invented because it wouldn’t spoil or go moldy. Money represents the value of what we’ve traded so that we can spend it on something we really want — when we want it.

Let’s say that you open your lunch bag and find ants eating your sandwich. I have an extra slice of pizza for lunch, but let’s face it: I’d have to be pretty crazy to trade my pizza for your sandwich. But what if you could give me something that guarantees I’ll get a sandwich — or its equivalent — tomorrow or the next day? You can — if you have money in your pocket.