What is money?
In this lesson you'll learn:
- Understand why people use money instead of swapping things
- Spot different forms of money: coins, notes, and digital UPI
The Great Invention of Humans
Money isn't just paper or coins — it is a universal superpower that lets anyone trade goods, measure value, and store hard work for the future.
A long, long time ago — before there were coins or apps or even paper notes — people would trade things they had for things they needed. If a farmer had extra rice and wanted a goat, they had to find someone with a goat who wanted rice. Tricky, right?
To make swapping easier, humans invented money. Money is just something that almost everyone agrees has value, so you can use it to get the things you need.
The three jobs of money
1. Medium of Exchange
You give money to the shopkeeper and receive books, toys, or food.
2. Store of Value
Save today's money safely in a bank, and spend it next month or next year.
3. Unit of Measure
A pencil costs ₹10 while a bike costs ₹5,000 — we know exact worth.
Money in different shapes
Today, money comes in three main shapes: coins, paper notes, and digital money (the kind that lives in a phone, card, or UPI app). They all do the same job — they all let people trade.
Quick check
1. Why did people invent money?
2. Which of these is NOT one of the three main jobs of money?
3. Which of these is digital money?
Checkpoint locked
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