What is a Barter System?

Dinero learned that The history of bartering dates all the way back to 6000 BC. Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians. Phoenicians bartered goods to those located in various other cities across oceans. Babylonian's also developed an improved bartering system.

Hi Kids I'm Dinero

the Smart Money Owl

That is going to take

you kids on a journey on

how money really works.

A barter system is an old method of exchange. This system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. 

Dinero learned that even Today, bartering has made a comeback using techniques that are more sophisticated to aid in trading; for instance, the Internet. In ancient times, this system involved people in the same area, however today bartering is global. 

Birth of Money

 If Dinero went to the shoemaker with candy bar and he already had enough candy bars, then Dinero will be out of luck. 

Dinero could not get a pair of shoes.

To solve this problem, the next logical thing Dinero had to do was to learn a type of system that anyone could use, all of the time. This system , was our current 

system of money.

      The First Coins

Dinero found out that the first coins date back to 700 B.C. by the Lydians, a group of people that lived in what is now Turkey. Coins then spread to Greece and Rome.

But the worldwide use of paper money and coins took a long time to occur. Even into the early days of the United States, bartering or trading was still a popular way to exchange goods and services.

U.S. Money Trail

Dinero also learned that Before the early settlers won the Revolutionary war that created the United States there was Spanish, English and French money used. But, in order to pay for the war, we needed to develop one common currency for all the colonies. In fact, the famous Paul Revere designed the first coins for the “Continental Currency.

The “Greenbacks”

  Dinero found out that The use of paper bills did not begin until the mid 1800’s! In 1861, when the Civil War began, the U.S. was in great need for money.

So, on July 17th, 1861, the Treasury Department was allowed to print and circulate paper money, which was nicknamed, “Greenbacks.”

Now Whats Next?

Dinero learned that people have been using paper money ever since! Sure, some of our currency has changed its appearance here and there, but the concept is still the same. Now, what good you do with all that money you going to get is up to you.

Dinero is going to teach you how to save your money and make more money now!

. So far Dinero learned that the Barter System

began in the early 6000 Bc but it became popular in the 1930's during the Great Depression which was a very bad  economic crisis that began in the 1920's.

. The first Greenback.

So, on July 17th, 1861, the Treasury Department was allowed to print and circulate paper money, which was nicknamed, “Greenbacks.”

But Dinero was a very smart curious owl that he wanted to learn How and why Money works and how he can save money and make money? 

Dinero found out that During the Civil War, the National Banking Act of 1863 was passed. Abraham Lincoln signed what was originally known as the National Currency Act, which for the first time in American history established the federal dollar as the sole currency of the United States.

    Now our Money is Called 

                     FIAT Fiat money 

Dinero learned that Fiat Money started to dominate in the 20th century. Since the decoupling of the US dollar from gold by Richard Nixon in 1971, a system of national fiat currencies has been used globally, often with freely floating exchange rates between the national currencies.

USA Dollar Is Backed By The Federal Reserved .

Dinero also found out that Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money that for the first time had no currency with any gold or silver backing. This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. Government.