This is the first part of a series of articles that I will be writing on the basics of money. It is important to teach value of money at a young age. I will be sharing tit bits and various means by which we can inculcate the value of money in the minds of kids at a young impressionable age. This will help them in the long run.
What is Money ?
Money is a medium of exchange in the form of coins and banknotes collectively. In simple words, money is that which is generally accepted as payment for goods or services. Money has evolved over time and today virtually money is a unit of account and need not be physical as long as it performs the functions of money,
History of Money
The history and evolution of money over time from barter to bitcoin is fascinating to read !! Money has been a part of human civilization for atleast 3000 years. Before money came into existance, man depended on barter system. As a medim of exchange money removes all the disadvantages of the barter system.
Initially, commonly traded goods like salt, weapons and animal skins acted like money. Then coins evolved in various metals like bronze, silver and gold. Around 700 B.C the Chinese introduced paper currency.
Today mobile payments and virtual currency is the order of the day. Bitcoin, a cryptocurrency invented in 2008 is a decentralized digital currency without a Central Bank.
All around the world, different countries have their own currency. Some of the major world currencies include US Dollar, European Euro, Japanese Yen, British Pound and Swiss Franc. There are 180 different currencies in the world.
As far as history goes, India was one of the early countries along with Greece and China to issue coins. Paper money was first introduced in 1861. Since then, many iterations have taken place and many denominations have been introduced or discontinued. The Reserve Bank of India is the Central Bank in India. The current set of bills in circulation is from the Mahatma Gandhi series that was introduced in 1996.