Introduction

     Have you ever wondered how money has changed over time? Well this is the right website for you. If you stick with me we’ll learn all about money.

How has Money Changed Over Time

   Through time wasn’t always easy. In the beginning of time people traded goods which were used like money. Sometimes people couldn't agree on what items were worth in trade value.

     The modern currency or cash bills that are used today are not the same as they were many years ago. Today money isn’t made of or backed by silver or gold as it was in the past. It's a lot different from the first coins that were made by Lydians in 600 BCE.

Coins

     The first metal coins were made between the years 550 and 600 BCE. That's more than 2,600 years ago. The first coins were made in Lydia, an ancient kingdom located where the country of Turkey is today. The Lydians used a metal called electrum to make coins. Electrum is a mixture of mostly gold and silver, with small amounts of copper and other metals.

    King Croesus, the last king of Lydia, was responsible for creating the first coins made of pure gold and pure silver. Also, images of lions were put on the coins. The bigger the size of the lion, the more value the coin had.

Paper Money

     Paper money was first made and used in China between the years 600-700. Compared to using coins, it was an easier and more efficient way of making trades.

    Paper money was not used in Europe until about one thousand years later, starting in Sweden in the 1600's. By the 1700's paper money was used all across Europe and even in the American colonies. 

Shells

    Cowrie shells have many qualities that made them a perfect fit for money. They were able to last a long time, easy to identify, easy to transport,  and almost impossible to counterfeit. Counterfeit means to make a fake copy of something. Also, cowrie shells have a uniform size that makes them easy to count or weigh. 

    Cowrie shells reached a high point in being used in the 1700's, but continued to be used into the 1900's. Shells were used by Europeans when trading slaves in West Africa.

   Also, Iroquois people made wampum belts out of white and purple quahog shells. Quahog is a type of clam. Wampum was used for many reasons, such as messages, peace treaties, and to record important events. Wampum was also used like money. 

Credit Cards

     The first credit card came out in 1950. It was called the Diners Club Card. This was followed by the American Express Card which first came out in 1958. The American Express Card is still used today. Other popular credit cards that are used include Visa card and MasterCard.

     Magnetic strips were invented to store information on the cards. Later, chips were also invented to make the cards safer and harder to steal information or counterfeit.

    When people use a credit card, it is like taking out a loan that needs to be paid back. The average American has four credit cards and owes $6194 in credit card debt.

Electronic, Digital, and Mobile Payments

     Electronic, digital, and mobile payments changed the way people paid for things. The first digital payments used the website PayPal in 1998. Other apps that people use include Apple Pay, Google Pay, Cash App, and Venmo. 

    Venmo came out in 2009 and is still used today. Venmo is an app for your phone that lets you send and receive payments using your phone instead of cash. 

    In this way people can use their phones or the internet to pay for bills or services instead of cash, checks, or credit cards. 

    Cryptocurrency, such as BitCoin, is a modern form of money that uses digital encryption technology which cannot be copied or counterfeited. BitCoin and other cryptocurrency is not actual physical money like coins and paper bills. It is entirely digital, but it can be sold or traded for actual money.

How Much Money Can a Bank Hold

    There are two types of banks: big and small banks. The small banks can only hold about $50,000 in cash. The bigger bank might hold $200,000 in cash. 

    Most banks will deposit most of their cash reserve funds with their federal bank. A bank may have millions or billions of dollars in funds, but only a very small part of the bank's funds is actually cash. Usually cash is used for smaller transactions (trades), but bigger transactions might use credit cards, checks, or electronic transfers instead of actually paper money.

    For example, if you buy a soda you might pay for it with a dollar bill. But if you buy a car, you would not take a giant bag stuffed with $30,000 in paper bills to the car dealer. Instead you would use some combination of credit cards, checks, electronic money transfers or loans to pay for the car.

Where Does Old Money Go

     The process of recycling old money isn't an easy job. One dollar bills get worn out the fastest because they get used the most. Money might get dirty, ripped, wrinkled, folded, or even run through the washing machine. It gets worn out and faded by touching a lot of people's hands. 

     Did you know that money is recycled every week? The United States banks make their own decisions about money and if it needs to be replaced. When bills get too worn out, a bank may request that old bills be replaced with new ones.

Conclusion

    In conclusion, money has changed a LOT over the years, from coins and shells and paper bills, to using credit cards and electronic payments. And money will continue to change as new technologies are invented and used to make trading faster, simpler, and more safe and secure.

     Can you believe that we came from using gold coins with lions more than 2,000 years ago to just tapping your phone?