💰 Money Skills for Kids & Teens · Lesson 1 of 7
What money is and where it comes from
Bartering, dollars and cents, and how people earn money.
Before there was money
Long ago people traded things: a farmer gave a sack of wheat and got a pair of shoes in return. That is called bartering. The problem: what if the shoemaker does not need wheat? That is why money was invented. Everyone agrees it has value, so you can trade it for anything.
Money in the United States
| Dollar ($) | The money of the US. One dollar = 100 cents |
|---|---|
| Coins | Penny 1¢, nickel 5¢, dime 10¢, quarter 25¢ (and the rarer half-dollar and $1 coin) |
| Bills | $1, $2, $5, $10, $20, $50 and $100 |
| The Federal Reserve | The central bank; bills are printed by the Bureau of Engraving and Printing and coins are made by the U.S. Mint |
Where your family’s money comes from
Most money at home comes from work. Adults work and get paid a wage or a salary. Taxes come out of each paycheck — federal income tax, Social Security and Medicare, and often state tax — and what is left goes into the bank. Today most money is invisible: it moves by card, by transfer or by app, but it is the same real money that someone worked for.
Tip
💡 Ask your parents what they do at work and how many hours. Suddenly you see that a $40 toy is worth hours of somebody’s work.
✏️ Practice: your turn
- Empty a piggy bank or wallet and sort the coins by value
- Count how much money there is, in dollars and cents
- Play barter: everyone brings 3 things and tries to trade
- Interview a parent: what is your job, and what do you like about it?
🧠 Quick quiz
Answer all 4 questions correctly to mark this lesson as done.
0 of 4 correct
All lessons in Money Skills for Kids & Teens
- 🪙 1. What money is and where it comes fromBartering, dollars and cents, and how people earn money
- ⚖️ 2. Needs or wants?What you must have, what is nice to have, and how to decide
- 🫙 3. Allowance and a budgetThree jars: spend, save, give
- 🎯 4. Saving for a goalHow many weeks until I can buy it, with a full example
- 🛒 5. Smart shoppingComparing prices, unit price, and the tricks of sales and ads
- 🏦 6. Banks and interestAccounts, debit cards, interest and compound interest in dollars
- 🔐 7. Money online, safely — and a final projectIn-game purchases, scams, card details and a family budget