💵 What Is Money?

Money is something people agree to use when they trade. Long ago people swapped goods — a basket of apples for a jug of milk. That is called bartering, and it only works if both people want what the other has.

Money solves that problem. Coins, notes and numbers in a bank app all stand for value everyone accepts, so you can sell apples to one person and buy milk from another.

A bank is a safe place to keep money. Banks store your savings, keep records, and can pay you a little extra called interest for keeping money there.