The Adventures of Penny Hi, I'm Penny! I bet you've seen a lot of me... at the store, in your dad's pocket, or even between the cushions of the couch. I'd like to tell you a little bit about myself and some of my friends. All together, we make up something called Money! The Adventures of Penny Money is what people use to buy the things that they need. A long time ago, people didn't use money. They would trade something they owned for something that they needed. If the shoemaker needed some bread, he would give the baker some shoes, and the baker would give him some bread. This was called "bartering." The Adventures of Penny Bartering worked fine for a while…until the baker had too many shoes, but the shoemaker needed more bread. The solution to this problem was Money. The baker and the shoemaker agreed to accept money for the things that they made. The Adventures of Penny with the Professor • The word money comes from the Latin word "moneta". Moneta was the name of the place where money was made in ancient Rome. • Early forms of money included beads, shells, stones and gems, and even whales teeth. Furs, cattle, tea and tobacco have also been used as money. • Early money was weighed, not counted. Coins, which have their value stamped on them, became popular because they allowed money to be counted. • As trading between countries increased, so did the use of money. It was a convenient way for people to purchase goods in large quantities. The Adventures of Penny There are 2 different kinds of money... coins and paper money. I'm a coin. I'm made of metal, and stamped so that people know how much I'm worth. My friend Dollar Bill is paper money. The Adventures of Penny It says right on him how much he's worth. Different types of money are worth different amounts. The Adventures of Penny with the Professor • The first coins were made around 700 B.C. by the Lydians, a group of traders who lived in what is now Western Turkey. The use of coins quickly spread to civilizations in Greece and Rome. • The first paper money was made in China around 800 A.D. • Paper money can either be "representative" or "fiat." Representative money is money that can be traded for an equal amount of either gold or silver. An example of representative money is a Silver Certificate. Fiat money is the type of money that we use every day. It cannot be traded for gold or silver. It is valuable because it is backed by the government, and people trust its worth. The Adventures of Penny Little money adds up to big money. I'm a penny, and I'm the smallest amount of money you can have. If you have five of me, you can trade me for a nickel. If you have a hundred of me, you can trade me for a dollar. If you have five dollar bills, you can trade them for one five dollar bill. • The different values of • George Washington $1 - One money are called Dollar "denominations." You can tell • Abraham Lincoln $5 - Five what denomination a coin is Dollars by its size, its color, and of • Alexander Hamilton $10 - course by what it says on it. Ten Dollars Paper money is a little trickier, because it's all the • Andrew Jackson $20 - same size and color. Reading Twenty Dollars the bill will tell you what it's • Ulysses S. Grant $50 - Fifty worth…but there's another Dollars way too. Each denomination • Benjamin Franklin $100 - One of paper money has a Hundred Dollars portrait of a famous American on it: The Adventures of Penny Not just anyone can make money. In fact, only the government can make money. Coins, like me, are made at a place called the United States Mint. There are big pieces of metal at the Mint. They stamp the metal with a big heavy machine called a press, and out pops a perfect penny….or nickel…or dime….or quarter…or half dollar. The Adventures of Penny • The Bureau of Printing and Engraving makes paper money. Paper money is printed on big sheets of paper, and then cut into the size that fits in your pocket. • Every coin or bill that the government makes has the year it was made stamped or printed on it. This afternoon when you go home, ask an adult if you can look at the money in their pocket and see if you can find the year it was made. The Adventures of Penny with the Professor • Coins are made in Philadelphia, Pennsylvania; Denver, Colorado and San Francisco, California. Paper money is printed in Washington, DC and Texas. Pennies are made of zinc covered with copper. Nickels are a mixture of copper and nickel. Dimes, quarters, half-dollars and dollar coins are three layers of metal. The center layer is pure copper (you can see it on the edge), the top and bottom layers are a mixture of copper and nickel. • 48% of the paper money printed each year is $1 bills. • What happens to money when it gets old? Coins that are bent and unusable are melted to make new coins. Paper money is shredded and recycled. It is estimated that over 15 million pounds of paper money are shredded each year!* • *NY Federal Reserve Bank The Adventures of Penny • After my friends and I are made, we get sent to a place called the Federal Reserve Bank. This is a really big place, where there is lots and lots of money. We wait at the Federal Reserve Bank until local banks and credit unions need us. • When we're needed, we jump on a truck and go to the same bank or credit union that you go to. The Adventures of Penny with the Professor • There are 12 Federal Reserve Banks in the United States. They are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Local banks order money from the Federal Reserve Bank when they need it. Demand for money increases at certain times of the year. For example, in November and December, when people are using cash for holiday shopping, local banks order "extra" money from the Federal Reserve Bank. The Adventures of Penny Look! Billy and Sally were playing on the couch and found me! Have you looked in your couch? You might find some of my friends. The Adventures of Penny What should we do with this penny? Don't spend me! Save Me! My friend Dollar Bill can tell you how! We could spend her. Take the Penny Trivia Quiz! Take the Professor Trivia Quiz! Penny’s Quiz Bartering was • a) when the baker and shoemaker would trade bread for shoes • b) a circus act • c) a summer holiday a) when the baker and • d) a special magic shoemaker would ring trade bread for shoes Penny’s Quiz There are 2 different kinds of money... • a) pebbles and twigs • b) rocks and leaves • c) coins and paper money c) coins and paper • d) flowers and money pictures Penny’s Quiz Five pennies make • a) a dollar • b) a nickel • c) a jingle • d) a fortune b) a nickel Penny’s Quiz Different coins are • a) all the same size and color • b) square and red • c) round and blue • d) different sizes and colors d) different sizes and colors Penny’s Quiz Who can make money? • a) it falls out of the sky • b) it grows on trees • c) the government can make money c) the government can make money • d) the bank Penny’s Professor Quiz Money was named after: • a) Lord Henry Monert, who used it to pay his servants • b) Moneta - a Latin word for money • c) Shiny rocks Pre- Historic men found along riverbanks b) Moneta - a Latin • d) The King of the word for money Leprechauns Penny’s Professor Quiz The famous American who appears on the $10 bill is: • a) Benjamin Franklin • b) Ronald W. Reagan • c) Alexander c) Alexander Hamilton Hamilton • d) John F. Kennedy Penny’s Professor Quiz Lydians were the first people to: • a) use coins • b) barter for goods • c) accept Lord Monert’s new system • d) name their a) use coins children Lydia Penny’s Professor Quiz A Silver Certificate is: • a) representative money • b) worthless • c) fiat money • d) very shiny a) representative money Penny’s Professor Quiz About how many pounds of paper money are shredded every year? • a) 15 lbs. (Fifteen) • b) 15,000 lbs. (Fifteen Thousand) • c) 15,000,000 lbs. (Fifteen Million) • d) 15,000,000,000 c) 15,000,000 lbs. lbs. (Fifteen Billion (Fifteen Million) Penny’s Professor Quiz Coins are made at the: • a) Federal Reserve Bank • b) Bureau of Printing and Engraving • c) Internal Revenue Service d) U. S. Mint • d) U. S. Mint Penny’s Professor Quiz Paper money was first used in • a) China • b) Mesopotamia • c) Florida • d) Egypt a) China Penny’s Professor Quiz The word 'denomination' means: • a) where a coin was minted • b) different values of money • c) Lord Monert’s system of payment • d) shredding worn out b) different values paper money of money Penny’s Professor Quiz Until banks need it, money is kept: • a) at the White House • b) at Fort Knox • c) at the Federal Reserve Bank c) at the Federal • d) Money isn’t made Reserve Bank until it’s needed Penny’s Professor Quiz Pennies are made of a) copper • b) copper and zinc • c) silver • d) gold b) copper and zinc Penny’s Professor Quiz Now let’s see what you remember. Take the quiz your teacher hands out and then on another day, come back and meet my friend, Bill.
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