First, people long a go bartered or traded. They traded if one tribe was capable of getting axes or other tools but if they couldn’t get eggs or other foods, they would trade. Tribes could get 6 eggs for an axe, but it always had to be fair.
Slowly we started to trade animal skins, salt, and weapons. In some places the still do that, today.
In about 1100B.C. the Chinese started to trade actual weapons. When they reached into their pockets for the weapons they could cut themselves because of the sharp edges. They made the sharp stones into circles. What a smart idea! Now they wouldn’t get cut! The Chinese created our first coins!
About 700 years before the Chinese created coins, Lydia’s King Alyattes created coins. Those coins were made from a mixture of gold and silver with different stampings. This helped the country of Lydia trade.
Some time after that the Chinese wanted to move on from coins, so they created bills. Those special slips of paper could be brought to the bank at any time and be traded or exchanged for gold or silver coins.
All Right! -Zuzanna