The Characteristics and Functions of Currency
This section highlights the concept of currency—its definition, its various forms, and the role it plays in present-day society. The material presented is designed to help you meet the following objective.
- Compare and contrast characteristics and importance of currency.
According to AP Economics teacher Brian Page, sometimes elementary students have trouble conceptualizing what money is and understanding its functions: their experience with handling money is just beginning. However, kindergarten is not too early to start teaching about money and related topics like budgets, credit, savings, and interest. The reasons for doing so are outlined by Page at the following link.
http://www.edutopia.org/blog/financial-literacy-elementary-students-brian-page?page=1
Money, or currency, basically takes the form of coins or paper notes issued by a government. It functions as a means of exchange for goods and services. Credit cards, debit cards, and checks can also be used as exchange mediums. Before coins and paper notes became the basic form of currency, other physical items were used as currency.The Akan people of Ghana in West Africa used a currency based on gold dust and a system of weights to determine currency value (as well as moral values, depending on the type of weights employed). Explore Akan currency at the link below.
http://mau.rs/en/past-exhibitions/akan-goldweights.html
The Federal Reserve Bank of Kansas City offers an activity for grades 4-8 that explores how the coins and currency we use today developed from earlier forms of money.
https://www.kansascityfed.org/documents/2863/teachingresources-early-money.pdf
