You will learn

  • Say what money is for.
  • Compare barter and money.
  • Name problems of barter.
  • Say what makes money useful.

Version 0.2 · expanded edition · built from cited public sources Content is based on the official frameworks and sources listed under Sources and standards. No official endorsement is claimed. Written in the style of common primary school assessments. No exam result is promised.

Student lesson

The lesson in 60 seconds

  1. Money is used to buy goods and services.
  2. Barter swaps things without money.
  3. Barter can be hard to arrange.
  4. Money makes exchange easy and fair.

Words to know

money
coins and notes used to buy things
barter
swapping goods or services without money
value
how much something is worth
exchange
to give one thing and receive another

1. Discover: The swap that failed

Long ago, Sorie’s great-grandfather had too many yams. He wanted salt, so he took yams to the salt seller. But the salt seller did not want yams. He wanted cloth. So Sorie’s great-grandfather walked far to find a cloth seller who wanted yams. “Today we use money,” says Sorie’s grandmother. “You sell your yams for money, then buy any salt you want.”

Think: Why is money easier than barter?

2. Understand: Money

Idea 1: Barter

Barter means swapping goods or services without using money. It only works if each person wants what the other has. This is called a double match, and it is often hard to find.

Idea 2: Money

Money is coins and notes that people accept in exchange for goods and services. You can sell your goods for money, keep the money safe, and later spend it on anything you need.

Idea 3: Good money

Money works well when it is accepted by everyone, easy to carry, hard to copy, lasts a long time and can be divided into small amounts. It also shows the value of things as prices.

Remember: Money makes exchange easier than barter.

3. Worked examples

Example 1 (I show you): Barter

What is the problem?

  1. Think.
  2. Check.
  3. Say.

Answer: Both must want what the other has.

Example 2 (We do it together): Use

What can money do?

  1. Think.
  2. List.
  3. Say.

Answer: Buy, save and show prices.

Example 3 (You try): Judge

Is a lump of cheese good money?

Show the steps and answer
  1. Think.
  2. Check.
  3. Say.

Answer: No, it spoils.

Did you know?

Long ago, people in different places used shells, beads, salt and metal pieces as money before coins and notes were invented.

Why this matters

Money lets people trade easily and fairly.

4. Explore: Barter or money

Play a barter game with pictures of goods. Try to swap. Then use play money. Compare and write what was easier.

  1. Barter.
  2. Use money.
  3. Compare.
  4. Write.
Think about it: what did you notice?

What did you notice? Money was quicker.

Safety first: Use play money or pictures only. Never touch or handle real money belonging to others without permission.

5. Practise

Say it in a sentence

Use these starters when you talk about the lesson. Say them out loud.

  • Money is ___.
  • Barter is ___.
  • Value is ___.
  • Exchange is ___.

Guided practice

Question 1. What is money?

Coins and notes for buying.

Question 2. What is barter?

Swapping without money.

Question 3. What is value?

How much worth.

Independent practice

Level 1: Start

  1. What is money?
  2. What is barter?
  3. What is value?
  4. What is exchange?
  5. Name an old money.

Level 2: Grow

  1. Why use money?
  2. Why is barter hard?
  3. Why divide money?

Level 3: Stretch

  1. Barter game.
  2. Money game.
  3. Compare.

Answers are in the answer key below. Try first, then check.

6. Apply: Social Studies in everyday life

Say one problem of barter and one use of money.

Show a sample answer

Double match; buying.

Another one. Ask how money is used in your home.

Show a sample answer

Share.

7. Common mistakes

Mistake: “Barter is easier than money.”
Fix: Money is easier.
Another mistake: “Money is only for rich people.”
Fix: Everyone uses money.

8. Lesson summary and revision card

I can…

  • I can say what money is for.
  • I can compare barter and money.
  • I can name problems of barter.
  • I can say what makes money useful.

9. Check and master

Answer all 14 questions. You will see feedback after each one.

1. Money is coins and notes used to …

2. Barter means swapping without …

3. Value is how much something is …

4. Exchange means give one thing and … another

5. Barter needs a double …

6. Money should last a long …

7. Long ago people used … as money

8. Money shows prices for …

9. We can keep money …

10. Money can be divided into … amounts

11. Cheese would be bad money because it …

12. We use play money or … in class

Challenge 1. Which is barter?

Challenge 2. Why use money?

Your result appears here after you answer every question.

10. Key takeaways

  • Money is used to buy goods and services.
  • Barter swaps things without money.
  • Barter can be hard to arrange.
  • Money makes exchange easy and fair.

11. Next lesson

Next lesson: Recognising local currency. Keep going with the next idea in this course.

Exam practice

These questions are written in the style of common school and international primary assessments. Try them on your own, without looking back. Then check your answers in the marking guide. The marks are shown in brackets.

  1. Say what money is for. [3 marks]
  2. Say what barter is and one problem. [3 marks]
  3. Say what makes good money. [2 marks]
  4. Say how to be safe with money. [2 marks]

Total: 10 marks.

Marking guide and model answers
  1. Buy [1]; save [1]; prices [1]
  2. Meaning [1]; problem [2]
  3. Two qualities [2]
  4. Permission [1]; safe [1]

Score guide: 9 to 10 = secure. 6 to 8 = nearly there, revise the parts you missed. Under 6 = work through the lesson again with a grown-up.

Printable worksheet

  1. What is money?
  2. What is barter?
  3. What is value?
  4. What is exchange?
  5. Name an old money.
  6. Why use money?
  7. Why is barter hard?
  8. Why divide money?
  9. Barter game.
  10. Money game.

Homework

Draw a barter swap and a money purchase.

Answer key and marking scheme

Question Expected response Marks
1. What is money? Coins and notes for buying. 1
2. What is barter? Swapping without money. 1
3. What is value? How much worth. 1
4. What is exchange? Give one, get another. 1
5. Name an old money. Shells. 1
6. Why use money? Easy trade. 1
7. Why is barter hard? Need a double match. 1
8. Why divide money? Small amounts. 1
9. Barter game. Game. 1
10. Money game. Game. 1
Total 10

Independent practice answers. Level 1: 1 Coins and notes for buying.; 2 Swapping without money.; 3 How much worth.; 4 Give one, get another.; 5 Shells.. Level 2: 1 Easy trade.; 2 Need a double match.; 3 Small amounts.. Level 3: 1 Game.; 2 Game.; 3 Compare..

Quiz answers: 1 B, 2 C, 3 A, 4 B, 5 C, 6 A, 7 B, 8 C, 9 A, 10 B, 11 C, 12 A, Challenge 1 B, Challenge 2 C.

Mastery and remediation

Objective Bronze (Developing) Silver (Proficient) Gold (Advanced)
O1 Say what money is for Shows this with help from an adult or a picture Does this independently and explains how they know Explains it clearly and uses it in a new situation
O2 Compare barter and money Shows this with help from an adult or a picture Does this independently and explains how they know Explains it clearly and uses it in a new situation
O3 Name problems of barter Shows this with help from an adult or a picture Does this independently and explains how they know Explains it clearly and uses it in a new situation
O4 Say what makes money useful Shows this with help from an adult or a picture Does this independently and explains how they know Explains it clearly and uses it in a new situation

Courseversity badge thresholds (overall quiz score): Gold = 90–100%; Silver = 80–89.9%; Bronze = 70–79.9%. A badge is never a full record of progress.

If a learner struggles

  1. Find the misconception: “Barter is easier than money.” Money is easier.
  2. Explain another way: use real objects, pictures or actions first, then words.
  3. Show a simpler example: Make a barter game.
  4. Guided practice: work through one example together and let the learner try the next one.
  5. Reassess: use the quiz again or the worksheet.
  6. Move on when the learner shows Silver-level evidence independently.

For parents and guardians

In this lesson your child learns why we use money. Please talk about how money helps your family. You do not need to be an expert to help.

  • Talk about barter.
  • Use play money.
  • Show how money is used.
  • Ask “how do you know?” after each answer, and listen.
  • Praise effort, not only right answers. Mistakes are how we learn.
  • Ten to fifteen minutes a day is better than one long session.

Teacher package

1–5. Objectives, prerequisites, materials, preparation, duration

Lesson objectives. Learners will: say what money is for; compare barter and money; name problems of barter; say what makes money useful.

Prerequisite knowledge. Grade 2 ideas: needs and wants, goods and services, producers and consumers.

Materials. Picture cards, play money. Low-resource options: use chalk or charcoal on a board or wall, drawings in the sand, and objects from the classroom instead of printed materials.

Preparation. Prepare goods cards.

Suggested duration. 45–60 minutes. It can be split into two shorter sessions.

6–9. Teaching procedure, explanation notes, guided and independent activities

Introduction (5 min). Tell the swap that failed story.

Explanation (10 min). Teach money.

Guided activity (10 min). Barter or money.

Independent activity (10 min). Discuss.

Assessment and reflection (5 min). Ask each learner to say one thing they learned and how they know it.

Key questions. Why do people use money?

Teacher explanation notes. Start with a picture, story, map or local example. Then talk about what was seen, then draw and write. Always ask “how do you know?” and invite more than one view. Treat every family, culture and community with respect, and never ask learners to share private information.

10–12. Differentiation, formative assessment, common misconceptions

Support. Use pictures, maps, real objects and short sentences, and let learners work with a partner. Let learners point, show, act or draw instead of writing. Extension. Ask learners to find a new example from their own community and explain how they know.

Formative assessment. Listen to learners read and explain, ask “how do you know?”, and check the independent work.

Misconceptions. “Barter is easier than money.” Money is easier.

13–15. Assessment questions, answer keys, marking scheme

Use the quiz, the 10-mark exam practice and the worksheet on this page. All answers and marking guides are in the answer sections above. Re-check every answer before use.

16–19. Remediation, enrichment, homework, teacher reflection

Remediation. Make a barter game. Enrichment. Find one new example near your home or school, draw or write about it and explain it to someone. Homework. See above.

Teacher reflection. After teaching, record: which ideas learners understood; which misconceptions occurred; which activities worked; which learners need more practice; and what to improve next time.

Sources and standards

This lesson is based on the sources below, and no official endorsement is claimed. Reference starting points: NCSS standards and C3 Framework, Cambridge Primary Humanities and the IB Primary Years Programme. Where a standard code is named, it points to the official framework.

Research used to shape this lesson. Courseversity Social Studies curriculum, Grade 2 Unit 7, topic 1; NCSS C3 Framework, economic decision making and exchange; Cambridge Primary Humanities, people and work; IB Primary Years Programme, how we organise ourselves. These sources informed the lesson.

Scroll to Top