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The Scoop on Money

People didn't always use bills and coins, and they might not in the future!

By Mara Grunbaum
From the October/November 2022 Issue
Lexile: 930L; 730L

Money has taken many forms over human history. People have used everything from rocks to cheese as currency! But most societies eventually switched to some form of coin or bill.

The first coins were used in Asia around 700 B.C. Paper bills were invented in China around 1000 A.D. Paper made money light and easy to carry.

Credit cards, which allow people to buy something and pay for it later, started being widely used in the 1950s. Debit cards, which take money directly from a person’s bank account, became popular a few decades after that. Today, apps like Venmo and PayPal allow people to make payments with their phone.

Kenneth Rogoff, an economist at Harvard University, thinks Americans will use even less cash in the coming decades. China and India now have systems where people can pay with a fingerprint or face scan. “You don’t bring a card. You just put your finger down,” says Rogoff.

Money has taken many forms in human history. People have used everything from rocks to cheese as currency! But most societies eventually switched to some form of coin or bill.

The first coins were used in Asia around 700 B.C. Paper bills were invented in China around 1000 A.D. Paper made money light and easy to carry.

Credit cards started being used in the 1950s. They allow people to buy something and pay for it later. Debit cards became popular a few decades later. They take money directly from a person’s bank account. Today, people use apps like Venmo and PayPal. They allow people to make payments with their phone.

Kenneth Rogoff is an economist at Harvard University. He thinks Americans will use even less cash in the future. China and India now have systems where people can pay with a fingerprint or face scan. “You don’t bring a card. You just put your finger down,” says Rogoff.

Most-Used In-Store Payment Methods IN U.S., 2021

Credit Card: 40%

Debit Card: 30%

Digital/Mobile Wallet: 11%

Cash: 11%

Other: 9%

 

Note: Numbers do not add up to 100% because of rounding.
Source: Statista

Which method of payment was used most often in U.S. stores in 2021?

Which method of payment was used most often in U.S. stores in 2021?

A. credit card

A. credit card

B. debit card

B. debit card

C. cash

C. cash

D. digital/mobile wallet

D. digital/mobile wallet

Paper Money Life Spans

Unlike digital currency, physical bills eventually wear out with use. Here are the estimated life spans of U.S. bills as of 2018.

 

Source: U.S. Federal Reserve

Which bills wear out faster than $1 bills?

Which bills wear out faster than $1 bills?

True or false: The life span of a $100 bill is more than twice that of a $20 bill.

True or false: The life span of a $100 bill is more than twice that of a $20 bill.

Floortje/Getty Images (Salt); Dorling Kindersley ltd/Alamy Stock Photo (Clam Shells); Isabelle Plasschaert/Alamy Stock Photo (Cheese); Shutterstock.com (All Other Images)

Strange Cash

Not all money is coin or paper bills. Here are some currencies that have been used throughout history.

 

Clockwise from left to right:

Salt

1200 B.C.—1900s
Salt was used as money in many ancient societies, including ancient Rome.

 

Rai Stones
1200 B.C.—Present
Yap, an island in Micronesia, uses huge, doughnut-shaped stone discs as money.

 

Parmesan Cheese
1953—Present
A bank in northern Italy accepts wheels of cheese as security for loans.

 

Shells
1200 B.C.—Present
Across Asia and Africa, cowrie shells were used as money. Native Americans used clamshells.

 

Tea bricks
1800s—1940s
In parts of Asia, including Tibet, bricks of tea were used as payment.

Which type of currency was used in 1850s Tibet?

Which type of currency was used in 1850s Tibet?

A. Parmesan cheese

A. Parmesan cheese

B. tea bricks

B. tea bricks

C. shells

C. shells

D. rai stones

D. rai stones

Which of these was commonly used as money by ancient societies?

Which of these was commonly used as money by ancient societies?

A. credit cards

A. credit cards

B. shark teeth

B. shark teeth

C. cheese

C. cheese

D. salt

D. salt

Most-Used In-Store Payment Methods IN U.S., 2021

Credit Card: 40%

Debit Card: 30%

Digital/Mobile Wallet: 11%

Cash: 11%

Other: 9%

 

Note: Numbers do not add up to 100% because of rounding.
Source: Statista

Which two forms of payment were equally common in U.S. stores in 2021?

Which two forms of payment were equally common in U.S. stores in 2021?

Paper Money Life Spans

Unlike digital currency, physical bills eventually wear out with use. Here are the estimated life spans of U.S. bills as of 2018.

 

Source: U.S. Federal Reserve

Which U.S. bill has the longest life span? Why do you think that’s the case?

Which U.S. bill has the longest life span? Why do you think that’s the case?

What does your class think?

What form of money are you most excited to use?

Please enter a valid number of votes for one class to proceed.

What form of money are you most excited to use?

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What form of money are you most excited to use?

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