The evolution of money

The evolution of money

We’ve all had our fair share of dreaded subjects at school. Whether it was physics, math, or history, many of us would watch the clock, waiting for the class to end. However, we can't deny that every subject covers essential information, especially history, which traces the events that have shaped our current way of life.

The history of money is critical but unfortunately overlooked. For example, did you know that bartering, which is still used today, was the earliest form of money?

Get ready for a history lesson, folks. It’s not about World War I or II, so boredom won't be an issue this time.

The barter system

Back in 6,000 BC, when money didn’t exist, the barter system was the only mode of exchange. It involved trading one good for another among Mesopotamian tribes and Phoenicians. For example, if you had apples but needed oranges, you only had to find someone with oranges who wanted apples. Simple as that!

Applying this to modern-day scenarios, many people offer their services in exchange for another. We vividly recall a teacher offering a writer in our team free singing lessons in exchange for her copywriting skills!

The transition to money

Coins: Around 770 BC in China, coins became the focal point that shifted exchange from bartering to using bronze and copper metals. The Chinese sought to create a tangible and valuable means of exchange, leading to the creation of circular coins. These coins were easily pocketed and exchanged, paving the way for economic advancement.

Paper money: To avoid taking you back to ninth grade history class, we’ll skip ahead and cut to the chase. After some time, the Chinese continued using coins but decided to create paper money. Although it took some time for the market to warm up to this new currency, it was eventually accepted as a valid means of exchange. Did you know that this form of currency started a whole war? That’s right! A currency war erupted as leaders and empires tried to devalue each other's currencies to stimulate their own economies.

Modern-day money: Getting right to the good stuff. Money has evolved tremendously! While we still use coins, like the American cents, and paper money, such as the Jordanian dinar, the euro, and the dollar, money has become more than a tangible resource.

Today, we have many cards and digital and cashless payments at our disposal. While we don’t always see or feel money, it remains a valuable means of exchange.

Bottom line?

While money has evolved tremendously over the years, and its future course remains uncertain, it continues to be an important means of exchange with a significant impact on how we live and do business. That's why it’s important to know the right way to manage it!

The key to financial success is understanding the value and history of your money. Now that you have some insight into how these currencies came to be, we hope you find effective ways to manage your money through saving, investing, or spending more wisely. And we hope you managed to keep your eyes open throughout this brief history lesson!

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