What Is Money?

Activity TypeDiscussion

Description

Participants decide whether to trade a piece of candy for a US$1 bill or a $1 Monopoly bill, then explain the difference in their choices. The discussion examines what gives money value, how money is issued, who controls the supply, and why people may value one form of money more than another.

Objectives

Participants compare why people value different forms of money and consider what gives money value.

Materials

Monopoly bills or counterfeit bills of the country’s currency
One piece of candy per student

Preparation Notes

Place a piece of candy on each student’s desk.

Setup

Ask participants not to eat the candy yet.

Procedure

Step 1

Ask who would trade their candy for a US$1 bill, then who would trade it for a $1 Monopoly bill.

Step 2

Ask why or why not.

Step 3

Discuss what makes one bill desirable and another worthless, what gives money value, where money comes from, who decides how much to print, and why more money is not printed and distributed equally.

Discussion Questions

What gives money its value?