Recommended for: Elementary School Students
What is Money? What are the different modes of payment? Who creates money? Do banks create money?
Watch the video and review the key takeaways below! Try quizzing your parents, it will show how smart you are!
Questions for the kids!
What is money?
Money is an exchange! Money is something everyone is willing to accept in exchange for goods and services. Although money has taken many forms over time, currently it’s most commonly seen as bills and coins.
What are credit & debit cards, and apps like Apply Pay, Google Pay, Venmo?
They are not the money by themselves – they are used to electronically pay money, without using physical money like bills and coins.
Who creates money?
The government of each country creates money that’s used in that country, and that is the currency for that country.
For example, the US Department of Treasury prints dollar bills and mints coins that are used in the US.
Do banks create money too?
No, only governments can create money.
Banks help circulate the money throughout the economy. Banks also store money on behalf of people and businesses.