Money, explained for curious kids

Chapters

1. 0:24 Swapping things: barter
2. 0:48 Shells, salt and stones
3. 1:17 Lydia invents the coin
4. 1:44 China prints the first paper money
5. 2:13 Gold, and then just trust
6. 2:42 Money becomes numbers

Money words

• Barter Trading goods directly, with no money
• Medium of exchange Something everyone accepts in a trade
• Coin A metal disc with a stamped, guaranteed value
• Banknote A paper promise that can be swapped for value
• Fiat money Money that has value because a government says so
• Digital money Money that lives as numbers in a bank's computer

Chapters

1. 0:17 The first bankers sat on benches
2. 0:48 What happens when you deposit money
3. 1:09 Banks lend your savings to others
4. 1:34 How a bank makes money
5. 1:59 The bank for banks: central banks
6. 2:26 What if everyone wants their money back?

Money words

• Bank A business that keeps money safe and lends it out
• Deposit Money you put into the bank, which it owes you back
• Loan Borrowed money that must be paid back, with interest
• Interest The price paid for using someone else's money
• Central bank The bank that runs a country's money system
• Bank run When many savers rush to take money out at once

Chapters

1. 0:23 The marshmallow test
2. 0:52 Needs, wants and a budget
3. 1:18 Pay yourself first
4. 1:44 Interest on your interest
5. 2:12 Benjamin Franklin's 200 year gift
6. 2:42 The rule of 72

Money words

• Delayed gratification Waiting for something better later
• Budget A plan for how you will use your money
• Savings Money you keep instead of spending
• Compound interest Earning interest on money you already earned as interest
• Long term Many years into the future
• Rule of 72 72 divided by the interest rate equals years to double

Chapters

1. 0:21 What is a share?
2. 0:47 Amsterdam, 1602: the first stock market
3. 1:12 Under a buttonwood tree
4. 1:38 Why prices go up and down
5. 2:03 Crashes, and why patience matters
6. 2:33 Don't put all your eggs in one basket

Money words

• Share A small piece of ownership in a company
• Stock exchange A market where shares are bought and sold
• Broker Someone who buys and sells shares for other people
• Supply and demand Prices rise when more people want to buy than sell
• Risk The chance that you lose some of your money
• Index fund One fund that owns small pieces of many companies

Chapters

1. 0:23 Supply and demand, and a tulip craze
2. 0:50 Adam Smith and the pin factory
3. 1:19 Why your things travel the world
4. 1:47 Inflation, and money as building blocks
5. 2:19 Where do taxes go?
6. 2:47 What will money look like next?

Money words

• Supply and demand Scarce things people want cost more
• Specialisation Each person does the job they are best at
• Trade Buying and selling between people and countries
• Inflation When prices go up and money buys less
• Tax Money everyone pays to fund shared things
• Mobile payment Paying with a phone instead of cash or cards