1. The Origins of Money and Banking

2. Lesson Objectives
Describe the main characteristics of money and explain why it is important for money to have these characteristics
Explain the idea of a bartering system and compare its advantages and disadvantages
Describe the evolution of coins and paper money
Describe the evolution of banking and its role within the finance industry

3. Key Vocabulary Barter Commodity Money Credit Money Fiat Money Money
Paper money
Representative money
Wampum

4. What is Money???
Money is something we take for granted, and although we use it every day we seldom think about what it is—only what it does
The goal of the lesson’s activities is to explore the origins and development of banking and related financial services and that to do so, you will begin with an investigation of money

5. Characteristics of Money
We will now talk about everyone’s favorite subject…money
Please list some characteristics of money on a sheet of paper or on the computer
Now share your list with a partner
Now let us create a class list of the characteristics of money

6. Characteristics of Money
We will be focusing on the following four characteristics of money, which have been culturally identified as important.
Money is durable: it lasts a long time
Money is divisible: it can be divided into smaller units
Money is portable: it can easily be carried
Money is generally acceptable: people will accept it as money

7. Characteristics of Money

8. A World Without Money Overall, what is the purpose of money?
If, without warning, you learned that in exactly one hour you would and everyone else would lose access to all their money, what would you do?

9. A World Without Money
How could you meet your basic needs in a world without money?
What needs could be met in this new environment?
Which needs couldn’t be met?

10. Let’s Barter What would you be willing to trade for this item? Why?
As with all things there is no consensus to how much this item is worth when bartering
How can you decide how much something is worth when bartering?

11. History of Bartering Clam shells Tobacco Jewelry Knives Rice Rocks
Bread
Silver
Chocolate
Coffee
Salt
Animal skins
Grain
Silk
Cows
Sheep
Corn
Copper
Fish
Which of these items were used at one time or another as a form of money?

12. History of Bartering
ALL of the items were once used as a form of money
Bartering is the exchange of goods and services without the use of money.
Now assess each item using the characteristics of money
durable, divisible, portable, and generally accepted

13. History of Bartering
Based on the characteristics which items would best be described as a form of money?

14. Let’s Barter Form groups of 4-6 people
Each student will receive a role card and MUST fulfill the trade on your card
Download- Role Cards: Trade Restrictions
You will have 5 minutes to complete your trades to acquire the goods that you need
You may NOT trade outside of your group

15. Let’s Barter
What difficulties did you encounter in trying to make the exchanges?
Could there have been an easier way to conduct the exchanges in their trades?
Reflection on bartering
Was it a frustrating or enjoyable experience?

16. The History of Money Money first evolved from the bartering system
Download- Anticipation Guide: The History of Money
Read each statement, agree or disagree and write a sentence as to why
After the presentation you will be able to see if your answers are correct.

17. The History of Money Presentation
Download- Note-Taking Guide: Timeline
This will assist you in your note taking during the presentation
After the presentation, form groups and discuss what your filled out in your timeline

18. The History of Money
Refer back to the Anticipation Guide: The History of Money
Were you all correct or were you surprised by some of the answers?

19. Origins of Money
You are about to create a timeline that will represent the six or seven of the most important aspects of the history of money
Download- Assignment: Timeline
Download- Example: Timeline
Download- Assessment Criteria: Timeline

20. Origins of Money
How does this example meet the requirements for the assignment?
What would you improve if this example was a draft you created?

21. Timeline Project
Okay now that your timelines are complete please place them around the room so each group can view them
Download- Worksheet: Self-Evaluation and Reflection
Complete individually

22. The Origins of Banking Download- Reading: The Origins of Banking
Read the first page of the reading
Now at your tables read only one section of the reading which will be assigned
Read the entire section individually
Ask any questions they have about the reading
Summarize the section

23. The Origins of Banking
Now after your section is complete move to a group that has not read your section
Summarize your section for the new group
With all new groups members each summarizing their section

24. The Origins of Banking
Answer the following questions and turn into classpress.
Three important facts that they learned from the lesson
Two things that they found interesting about the reading and/or the lesson
One question that they had after the reading and/or lesson

25. Enrichment
Even though we now live in a world where there is paper currency, bartering is still prevalent. In fact, craigslist.org has a whole category for bartering
For example, 100 paperback mysteries for a computer hard drive or dental work needed in exchange for house cleaning
Create their own craigslist posting where you think of a want that you have and a good or service that you can offer to create a trade.

26. Enrichment
Write an essay containing basic information about the origins of banking, using the background information you have on the earliest banks
Address such topics as why we as a society needed a bank and how early banks met people’s needs
Include personal observations about today’s banking practices and how they connect to early banking practices.

27. Cross-Curricular Integration
Language Arts: Throughout history, successful entrepreneurs have decided to start a bank
Write biographies on famous businessmen and businesswomen who have started banks (Ernest Woodruff, Alexander Hamilton, etc.).