Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Why Is Money So Important?

Pennies were first introduced in 1793, when the United States established our system of money.
Darren415
Pennies were first introduced in 1793, when the United States established our system of money.

In this episode of But Why we visit a credit union to learn what money is all about and Slate Money hosts Felix Salmon, Anna Szymanski and Jordan Weissman answer questions about why money plays such a big role in modern society. How was money invented? Why can't everything be free? How do you earn money? Why don't kids go to work? How was the penny invented? Why are dimes so small?

Download our learning guides: PDF |Google Slide| Transcript

Loading...

Who invented money? - Luca, 9, Ashland, Ore.

There's no first person we can point to who invented money. The idea of money has evolved as human society got more complicated. In the early days of humankind, people mostly bartered. Bartering is essentially trading.

But over time people realized they needed to have a system for dealing with things when there wasn't an easy trade. If you have something I want but I don't want anything you're offering because I really need something else, how do we work it out? That's where the earliest forms of money emerged. First they were things like shells or rocks. Then pieces of clay with symbols or faces pressed into them. These things don't have much value by themselves, but if everyone agrees that they're going to use them as a symbol of value, you can trade them and start a system of payment.

Eventually these objects became more formalized, turning into coins and paper dollar bills, like the ones we use today. These days there's another method of buying and selling: the credit or debit card.
 

Click listen to hear the episode and get answers to all of our money questions.

Amanda Seeholzer, a financial counselor with NEFCU, says credit unions are great places to learn more about financial literacy.
Credit Melody Bodette / VPR
/
VPR
Amanda Seeholzer, a financial counselor with NEFCU, says credit unions are great places to learn more about financial literacy.

Melody is the Contributing Editor for But Why: A Podcast For Curious Kids and the co-author of two But Why books with Jane Lindholm.
Jane Lindholm is the host, executive producer and creator of But Why: A Podcast For Curious Kids. In addition to her work on our international kids show, she produces special projects for Vermont Public. Until March 2021, she was host and editor of the award-winning Vermont Public program Vermont Edition.
Latest Stories


But Why is a project of Vermont Public.

vermont public logo