Money, Goods, & Services

Money, Goods, & Services

Money, Goods, and Services Money, Goods, and Services I. Experience 1. Visiting the BEP 2. The Farmer’s Video II. Introduction 1. Money Timeline III. Enrichment 1. Value of Money 2. Supply and Demand 3. Digital Finance 4. Investing 5. Innovation 6. Technology of Money IV. Projects 1. No more Hamilton? 2. Design your own currency 3. Cartoon of Supply and Demand 4. Fashionable Money *All IFW programs are TEKS aligned Experience Enrichment About Us Introduction Projects IFW Donors

Money, Goods, and Services Experience: Visiting the BEP • Students learn about finance by: • Touring the BEP (Bureau of Engraving & Printing) • Watching a film about Fort Worth’s pioneers & bartering • Learning about the history of money, good & services • This program takes a multi-dimensional approach to learning about money. • Students tour the U.S Bureau of Engraving & Printing where U.S. currency is printed. • Learn more about the BEP here: https://www.youtube.com/watch?v=2qjCj8phzaM Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Experience: Visiting the BEP Did you know that U.S. currency is only printed in two locations: Washington, D.C. and right here in Fort Worth? Coins are made at the U.S. Mint. Mint touring facilities are located in Denver, CO and Philadelphia, PA. This tour of the BEP allows students to see first hand how money is printed. It is a rare opportunity to see millions of dollars in one location! https://www.youtube.com/watch?v=-IBHbe-t-X4 Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Experience: Farmer’s Video Students will enjoy an original video presentation featuring the Farmer family, some of Fort Worth’s first residents. George “Press” Farmer and his wife Jane will demonstrate how local residents adapted to changing finances from life on the prairie, to the fort’s period, and eventually to a modern banking system. Watch their video here: http://www.youtube.com/watch?v=jfetkxARz1o&feature=youtu.be Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction • Learn about the history of money, bartering & worth, virtual finances, innovations in finance and future finances. • Also included in this program are a detailed study unit about money in Texas, which will be emailed to each teacher, as well as fun projects to use in the classroom with students to reinforce this knowledge. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money What is money? By definition, it’s something of value. But over the last 10,000 years, the material form that money has taken has changed. In the beginning: Bartering is the exchange of resources or services for mutual advantage. The practice likely dates back tens of thousands of years. Barter among humans certainly pre-dates the use of money. Today individuals, organizations, and governments still use, and often prefer, barter as a form of exchange of goods and services. Watch Schoolhouse Rock! on bartering: https://www.youtube.com/watch?v=J7hNOt2Y0J8 Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 9000 - 6000 B.C.: Livestock - (including cows, sheep, camels, and other animals), are the first and oldest form of money. Useable goods such as furs and animals skins were also an important part of early bartering. With the advent of agriculture also came the use of grain and other plant products as a standard form of barter in many cultures. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 1200 B.C.: Cowrie Shells - The first use of cowries was in China. Historically, many societies have used cowries as money, and even as recently as the middle of this century, cowries have been used in some parts of Africa. The cowrie is the most widely and longest used currency in history. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 1000 B.C.: First Metal Money & Coins -Bronze and copper cowrie imitations were manufactured by China at the end of the Stone Age and could be considered some of the earliest forms of metal coins. Metal tool money, such as knife and spade monies, was also first used in China. These developed into primitive versions of round coins. Chinese coins were made out of base metals, often containing holes so they could be put together like a chain. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 500 B.C.: Modern Coins -Outside of China, the first coins developed out of lumps of silver. They were stamped with various gods and emperors to mark their authenticity. Unlike Chinese coins which depended on base metals, these new coins were made from precious metals such as silver, bronze, and gold, which had more inherent value. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 806 AD: Paper Currency -The first known paper banknotes appeared in China. Then, beginning in 1455, the use of paper money in China disappeared for several hundred years. This was still many years before paper currency would reappear in Europe, and three centuries before it was considered common. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 1500: "Potlach" comes from a Chinook Indian custom that existed in many North American Indian cultures. It is a ceremony where not only were gifts exchanged, but dances, feasts, and other public rituals were performed. The exchange of gifts was important in establishing a leader's social rank. 1535: Wampum -Wampum are strings of beads made from clam shells by North American Indians. Most likely, this monetary medium existed well before 1535; however, this is the date they were first documented by travelers. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline 1816: The Gold Standard- Gold was officially made the standard of value in England in 1816. Guidelines were made to allow for a non-inflationary production of standard banknotes which represented a certain amount of gold. Banknotes had been used in Europe for several hundred years before this time, but their worth had never been tied directly to gold. Part I: The History of Money In the United States, the Gold Standard Act was officially enacted in 1900, which helped lead to the establishment of a central bank. Gold Standard: https://www.youtube.com/watch?v=LdyHso5iSZ I Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money 1930: End of the Gold Standard- The massive Depression of the 1930s, felt worldwide, marked the beginning of the end of the gold standard. In the United States, the gold standard was revised and the price of gold was devalued. This was the first step in ending the relationship altogether. The British and international gold standards soon ended as well, and the complexities of international monetary regulation began. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline Part I: The History of Money Currency continues to change and develop, as evidenced by the recently redesigned $100 bill featuring Ben Franklin. This bill is printed right here in Fort Worth! The current push is to replace the founder of our treasury department, Alexander Hamilton, on the $10 bill. Learn more about this in the project pages of this PowerPoint presentation. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Introduction: Money Timeline The future, electronic money- in our digital age, economic transactions take place electronically, without the exchange of any physical currency. Digital cash in the form of bits & bytes will likely continue to be the currency of the future. Part I: The History of Money Video on understanding banking: https://www.youtube.com/watch?v=fTTGALaRZoc Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Value of Money Part II: What is it all worth? Money doesn't have any inherent value. A car has value because it can help you get where you need to go. Water has a value because it has a use; if you don’t drink enough of it you will die. Money has no more use than any other piece of paper. It didn't always work this way. The value of the coins was roughly based on the value of the metals they contained. Until a few decades ago, paper money was based on the gold standard or silver standard or some combination of the two. The gold standard lasted until 1971 when President Nixon announced that the United States would no longer exchange dollars for gold. So these pieces of paper in your pocket are nothing but pieces of paper. Or are they? Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Value of Money Part II: What is it all worth? So why does a 5-dollar bill have value and other pieces of paper don’t? Money is a good with a limited supply and there is a demand for it because people want it. I can use my money to get goods and services. Goods and services are what ultimately matter in the economy. People sell their labor (work) to acquire money to then purchase goods and services that they want or need. Our system of money operates on a mutual set of beliefs. It is unlikely that money will be replaced in the near future. If one currency is to be replaced by another, there will be a period in which you can switch your old currency for new currency. This is what happened in Europe when countries switched over to the Euro. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Supply and Demand Part II: What is it all worth? Supply & Demand Demand refers to how much (quantity) of a product or service is desired by buyers. The relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is set to reflect a certain product’s supply and demand relationship. Fun video about demand and supply: https://www.youtube.com/watch?v=RP0j3Lnlazs Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Supply and Demand Part II: What is it all worth? Let’s look at an example to show how a business owner uses supply and demand to determine price. Pete owns a tree farm. Each year, when it comes time to plant new seedlings, he takes a look at how many trees he sold the last season. Based on his research, he makes a prediction about what people will want to buy this season. Pete knows that he must pay for running a tree farm. He must buy his seedlings and be able to pay workers (including himself) to plant and cultivate the trees. Here’s another great example: https://www.youtube.com/watch?v=WPy-QKXofQs Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Supply and Demand Part II: What is it all worth? Pete has to purchase or repair machinery necessary for his crop. He must purchase the supplies needed to keep the business running and advertise his trees! Pete must think of all of these factors and costs when making decisions about what to plant, how much to plant and what the final cost will be. This final cost must be reasonable for his customers to keep buying from him and it must meet his costs to stay in business. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Supply and Demand Part II: What is it all worth? Supply and demand are closely connected. They cause the prices to go up and down. When the supply is greater than the demand, prices go down. When the demand is greater than the supply, prices go up. When prices for goods or services are high, consumers will purchase fewer of them. Producers, however, will be motivated to make more products when prices are high and they can get more money for them. Video about supply/demand and price: http://vimeo.com/35080845 Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Supply and Demand Part II: What is it all worth? Sometimes people can't get the goods or services they want because the supply is not available. When this occurs, the prices often go up. Then people must make decisions. When this happens, they must often choose to buy less. When the prices are low, consumers purchase more of those goods or services. Producers will then make fewer of these products to sell because they do not make much money from them, and the supply will decrease. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Digital Finance Part III: Virtual World of Money Automatic Teller Machines (ATMs)- In 1967, a Scottish inventor named John Shepherd-Barron was sitting in the bathtub when he had a flash of genius: if vending machines could dispense chocolate bars, why couldn’t they dispense cash? Unlike modern ATMs, it did not use plastic cards. Instead, it used paper vouchers printed with radioactive ink so that the machine could read them. The customer entered an identification code to get cash. History of ATMS: https://www.youtube.com/watch?v=6so_y6Bd36E Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Digital Finance Part III: Virtual World of Money Automatic Teller Machines (ATMs)- The first automated banking machine in the U.S. was devised in 1969 by a Dallas engineer and former professional baseball player named Donald Wetzel. Wetzel’s machine used plastic cards like the ones we use today. ATM inventor Don Wetzel visits the Sprinkles cupcake ATM in Dallas Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Digital Finance Part III: Virtual World of Money Credit cards are plastic cards issued by a bank or company allowing the holder of the card to purchase goods and services without using cash, also called buying on credit. When you use a credit card, the credit company that issued the credit card pays the store. Later, you will get a bill from your credit card company for the amount you purchased. At that time, you can either pay the bill in full or only pay part of the amount, with an additional charge of interest owed on the amount that you do not pay. This additional cost of interest can vary from 10% to over 20%. Understanding interest rates: https://www.youtube.com/watch?v=GHHesANT6OM Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Digital Finance Part III: Virtual World of Money Dangers of Credit Cards They make it effortless to Spend Money- We tend to purchase things without thinking of how we’re going to pay for them. Only spend what you can afford to pay the end of each month. Everyone else is using them - 72% of Americans credit cards. This makes it easy for us to use; however, if you want to build wealth and save, you need to understand your own spending limits. Interest charges - One of the biggest ways to keep drowning in debt is to not pay the full balance on a credit card. If you carry a balance you’re actually paying 15% - 20% in interest charges. They block you from pursuing other goals- When you rely strictly on credit cards to make all your monthly purchases, it can be difficult to stick to a budget, thus making it easier to incur debt. Understanding credit: https://www.youtube.com/watch?v=ijQTqa0no18 Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Investing Part III: Virtual World of Money The stock market is a major part of the economy. Here are some stock market basics to understand. Investment- This is how a business raises money -by giving investors a piece of the company and as the value of the company rises or falls so will the value of the money invested. Here’s an example- if you want to start a lemonade stand, but don’t have the money to buy the lemons, sugar, cups, and equipment, what should you do? You can borrow money and offer your investors a quarter for every dollar of profit that the lemonade stand makes. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Investing Part III: Virtual World of Money Stock MarketShares - “pieces” of the company that a person can own if they invest in the company. These shares go up and down in value based on how well the company is performing. The laws of supply and demand we learned about earlier apply to the stock market as well. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Investing Part III: Virtual World of Money Remember that investing in the stock market, although common today and beneficial to many, is a calculated risk. The Stock Market Crash of 1929 that sent the world into the Great Depression reminds us about what can happen when markets collapse. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Innovation Part IV: Innovation What is…entrepreneurship? Entrepreneurship - pursuit of opportunity beyond resources controlled. “Pursuit” implies a singular focus. Entrepreneurs perceive a short window of opportunity. Thus, entrepreneurs have a sense of urgency that is seldom seen in established companies, where any opportunity is part of a portfolio and resources are more readily available. “Opportunity” implies an offering that is novel in one or more of four ways: 1) pioneering a truly innovative product; 2) devising a new business model; 3) creating a better or cheaper version of an existing product; or 4) targeting an existing product to new sets of customers. “Beyond resources controlled” implies resource constraints. Many entrepreneurs keep expenditures to a bare minimum while investing only their own time and personal funds. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Innovation Part IV: Innovation-What’s the difference between a small-business and an entrepreneur? Small-business owners have a great idea. They solve a problem in their community. They know their business and target audience. They serve their customers. Entrepreneurs have big ideas. They dream big. They come up with ideas that haven’t been tested. A lot of times they don’t even know if their ideas are possible. Small-business owners hold steady. They like to know what’s coming and make calculated decisions. The result may not be huge, but it will typically keep them moving forward. Entrepreneurs love risk. They step out on a ledge. They jump in with both feet knowing that if they put in their full effort, the risk will be worth it more often than not. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Innovation Part IV: Innovation Small-business owners think about the things they need to finish this week. They have daily and weekly to do lists. They manage employees, work with customers, and keep everything going. Entrepreneurs are thinking ahead six months. They tend to skip the now and focus on the future. Small-businesses owners are sentimental with their businesses. They never plan on selling or handing their business off to someone else unless it's family. They like making the decisions and running the day-to-day. Entrepreneurs focus on scaling. They want to grow and grow. America needs small-business owners to hold the economy and entrepreneurs to propel it forward. One isn’t better than the other. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Technology Part V: The Future of Money Today, the technology of money is racing to catch up to social changes that have radically altered how people interact and therefore how, why, and when they use money. It’s impossible to say what the unintended consequences of these innovations in financial technology will be. The mobile phone and virtual finance: recently Apple has introduced digital pay methods with their devices but soon most banks and mobile service providers will offer some type of digital payment utilizing wearable technology or cellular phones like Google Pay and Apple Pay. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Technology Part V: The Future of Money Will biometrics replace banks cards or even money? Put hand in front of a bright light and you’ll see a web of blue veins. That delicate lattice of blood vessels is unique to you, just like the striations in your irises or the swirls of skin on your fingertips. Thanks to biometric systems, about 80,000 ATMs in Japan are as close to being as theft proof as it’s currently possible; however, backers of biometrics have grand plans. One bold bank in Japan is preparing to let its customers ditch their bank cards all together in favor of biometrics. Understanding biometrics: https://www.youtube.com/watch?v=eZTfgNIiNUA Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Technology Part V: The Future of Money These advances are pushing researchers towards futuristic visions, where you’ll be able to buy a candy bar by flashing your hand at a sensor. Such a scheme is still sci-fi for now, but the fact that engineers are starting to tackle those challenges is yet another sign that we’re approaching another milestone in human culture: a new level of abstraction in the centuries-old virtualization of money. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Technology Part V: The Future of Money The currency of the future may be virtual, it may be digital, bartering may again gain prominence or it may remain in the physical realm such as paper money. As young people the future is largely in your hands. What do you think the future of currency will be? Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Money Facts Fun Money Facts: • The Bureau of Engraving and Printing produces approximately • 26 million notes a day, with a face value of approximately $1.3 billion. • Currency is actually made of fabric which is composed of 25 • percent linen and 75 percent cotton. • Currency paper has tiny red and blue synthetic fibers of various • lengths evenly distributed through out the paper. • The largest bill ever printed by the Bureau of Engraving and Printing was the $100,000 gold certificate. • The U.S. Secret Service was created during the Civil War to fight counterfeiting. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Enrichment: Money Facts Fun Money Facts: The Bureau of Engraving and Printing uses approximately 9.7 tons of ink per day. The approximate weight of a bill is one gram. Since there are 454 grams in one pound, there are 454 notes in one pound. About 4,000 double folds (forward and backward) are required before a note will tear. • The average life of a Federal Reserve note depends upon its denomination: • $1-note - 5.9 years • $5-note - 4.9 years • $10-note - 4.2 years • $20-note - 7.7 years • $50-note - 3.7 years • $100-note - 15 years Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Project: No More Hamilton? Project: New $20 Bill Current Events: Treasury Secretary Jack Lew announced Alexander Hamilton will be replaced on the $10 bill in favor of the first woman on American currency in over 100 years. Previous women to be featured on American currency were Martha Washington & Pocahontas. However he faced a backlash from fans of Hamilton and now Harriet Tubman will replace Jackson on the $20. http://www.politico.com/story/2016/04/treasurys-lew-to-announce-hamilton-to-stay-on-10-bill-222204 Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Project: No More Hamilton? Project: New $20 Bill Current Events: Why was there controversy about replacing Hamilton? Because he founded the American financial system, establishing a national bank, a system of tariffs, and friendly trade relations, ensuring our newly formed union would survive. Jackson who is on the $20 is now being replaced with much less disagreement due to his controversial past and actions. Learn more about the men on our currency. Which would you like to replace? Write a paragraph about who you would replace on our currency and why. Then create a new version of the money you feel should be updated. Learn more about Hamilton: https://www.youtube.com/watch?v=NP2a1xkbLgU Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Project: Design Currency Money Projects: Design, Innovate & Invent Design your own currency. Think about the symbolism in currency: the leaders shown on the front, the type of lettering on money, the images that represent our nation. Now re-invent money to represent who you are as an individual instead of the country in which you live. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Project Cartoon Demand Money Projects: Design, Innovate & Invent Create a cartoon to help explain supply and demand. You can use any aspect of supply and demand or price setting. Enrichment About Us Experience Introduction Projects IFW Donors

Money, Goods, and Services Project: Fashionable Money Money Projects: Design, Innovate & Invent Design your own fashion currency. Money is made of fabric (25% linen, 75% cotton) just like clothes and shoes. Use the template links below to design money clothing. You can draw your money designs on the clothes or collage on to clothes forms. T-Shirt: http://vectorclothes.com/img/clothes/t-shirt_w_m_line.jpg Men’s Clothes: http://cache4.asset-cache.net/xc/115958103.jpg?v=1&c=IWSAsset&k=2&d=B53F616F4B95E553F39D1758FBE6C4DBD61B46D2158A0E1C1AF7937D6D50B200 Ladies Clothes: http://thumbs.dreamstime.com/z/women-s-fashion-clothes-vector-set-6951304.jpg Tennis Shoe: http://www.clker.com/cliparts/O/4/1/3/E/1/shoe-outline-white-hi.png Converse Shoes: http://4.bp.blogspot.com/-eovLCM3MzMI/TdWwZJNMc8I/AAAAAAAAAIg/4ht6rG1CyTo/s1600/Converse%2BOutline.PNG Enrichment About Us Experience Introduction Projects IFW Donors

About Us: Imagination Fort Worth Imagination Fort Worth sparks the imaginations of Texas kids through transformational experiences. Over the past 25 years, more than five million students have participated in our programs—programs that combine the creative thrill of the arts with the critical educational goals outlined by local and state guidelines. Through art, dance, music, and theater, students engage with history, science, math, and language in ways that enhance learning and awaken creativity. Enrichment About Us Experience Introduction Projects IFW Donors

About Us: Imagination Fort Worth Imagination Fort Worth is an independent non-profit organization. We partner with local schools to create field trips and in-school programs that target specific educational needs, as well as with local arts and cultural institutions to introduce students to a diversity of mind-opening experiences. Visit us at: http://imaginationfortworth.org/ Enrichment About Us Experience Introduction Projects IFW Donors

Imagination Fort Worth would like to thank the all of our donors, partners, and volunteers for their continued support. Check out the link below for a comprehensive list of donors and partners! http://imaginationfortworth.org/get-involved/partners-sponsors/ Experience Enrichment About Us Introduction Projects IFW Donors

Enjoy your tour of the Bureau of Engraving & Printing!

Money, Goods, & Services