What Is Money?

What is money? For kids, it is one of the best first questions in financial education, and it is the first lesson on Money World. In this lesson, Goldie explains why people invented money, what jobs money does and how money changed from shells and coins to the digital dollars we use today.

What is money for kids of every age?

This lesson comes in three versions. Ages 4 and up hear a short story about trading toys and snacks. Ages 8 and up explore barter, the three jobs of money and how cash and bank money work. Ages 13 and up dig deeper into what makes something work as money, how most money is held in banks and why trust matters so much.

Each version includes learning objectives, an illustrated explanation, an everyday example, an activity, a quiz and a summary. Choose an age level below to begin. When you finish, press the complete button to earn XP and move toward the Money Explorer badge.

Why this lesson matters

Kids use money long before they understand it. As a result, they may think money simply comes from a wallet or a card machine. Knowing what money really is helps children make sense of prices, saving, banks and, later, investing. It is also the foundation for every other planet in the Wealthonauts universe.

After this lesson, continue to Gold, Silver and Paper Money or practice spending choices in Build a Budget.

How to use this lesson at home or in class

Start with the level that matches your learner, then try the next level up when they are ready. For example, a family can read the Junior story together, while an older sibling works through the Advanced version. Because every level covers the same topic, this what is money for kids lesson works well for mixed-age groups, homeschool co-ops and classrooms. Finally, the quiz shows what stuck, and the summary makes a quick review the next day.