You and Your Money

1. You and Your Money Business and Personal Finance Chapter 5

2. What is Money? Money is how we measure economic value. The cash and coins we use, called currency, are what we use in our society to pay for goods and services.

3. Before there was money… The barter system The barter system dates back many centuries. In most cultures the barter system was used before money was created. People who had specific items or services would exchange them with others for the things they needed.

4. Money Around the World Australia dollar Brazil real Chinayuan Franceeuro (formerly French franc) Germanyeuro (formerly Deutsche mark) Greeceeuro (formerly drachma) Haitigourde Indiarupe Italy euro (formerly lira) • Japanyen • Mexicopeso • Polandzloty • Russiaruble • SaudiArabiariyal • Spain euro (formerly peseta) • UKpound sterling • USAdollar

5. Money in the US In the U.S., the federal government prints money and regulates the amount. All the coins and bills in the U.S. are created, or “minted,” by the Treasury of the federal government. The Treasury carefully controls how many dollars and coins are distributed.

6. Money in the US:Whose faces do we see? George Washington $1

7. Money in the US:Whose faces do we see? Thomas Jefferson $2

8. Money in the US:Whose faces do we see? Abraham Lincoln $5

9. Money in the US:Whose faces do we see? Alexander Hamilton $10

10. Money in the US:Whose faces do we see? Andrew Jackson $20

11. Money in the US:Whose faces do we see? Ulysses S. Grant $50

12. Money in the US:Whose faces do we see? Benjamin Franklin $100

13. Money in the US:Whose faces do we see? Abraham Lincoln 1 cent

14. Money in the US:Whose faces do we see? Thomas Jefferson 5 cents

15. Money in the US:Whose faces do we see? Franklin D. Roosevelt (FDR) 10 cents

16. Money in the US:Whose faces do we see? George Washington 25 cents

17. Money in the US:Whose faces do we see? John F. Kennedy (JFK) 50 cents

18. Money in the US:Whose faces do we see? $ 1 coin Presidential Coin Program

19. Money….. Money is the glue that binds products, services, and people together in our economy. Our country’s economic engine is fueled by what people create, and money allows people to both produce and buy what is created. People earn money by working and being paid for their work. Aside from being fun to have, money helps you handle the necessities of everyday life.

20. The Money Cycle • Money changes hands frequently – it’s exchanged everyday between people, businesses and banks. • Money may come to a bank from many sources. • It starts at the Treasury, which keeps banks supplied with the money they need for their customers. But money that’s already in the economy also goes to banks – from individuals and businesses who keep their money in banks. • People put their money in a bank for safekeeping. Banks pay interest on the money people put in the bank for extended periods of time. • Banks lend the money to borrowers and investors. Banks charge interest on the money they lend. • Money leaves the bank, goes through the economy, and comes back again. Money recycles!

21. The Money Cycle Consumers Stores/ Retailers US TREASURY Banks Wholesalers Manufacturers

22. What are the main services that banks provide? • Banks and similar financial institutions provide a number of helpful services to help you manage your money: • Savings accounts enable you to keep your money safe and make it grow with interest. • Checking accounts allow people to make purchases and pay bills using paper checks instead of cash. • Loans help people to purchase expensive items, such as cars, and then pay the money back over time, plus interest. • Credit cards can be a convenient way to buy things and pay for them over time, but the interest rate is frequently higher than with loans. • Investment accounts can help people make their money grow over time, and be prepared for large expenses, for example college education.

23. Banks Once you’re set up with accounts at a bank, how do you manage your money? How do you put money into your accounts and take money out? How do you keep track of it? Banks help you to do all of these things, and make money management easy.

24. Banks When you work with a bank, you can get cash, add cash, and transfer money between accounts, either at a bank store or at an automated teller machine, or ATM. At some ATMs, you can get cash 24 hours a day. Some bank stores are even located in grocery stores! At some banks, you can manage your accounts by phone or online. It all adds up to a lot of convenience!

25. 1st Bank The 1st bank was called: First Bank of the United States and was needed because the government had a debt from the Revolutionary War, and each state had a different form of currency. It was built while Philadelphia was still the nation's capital. Alexander Hamilton visualized the bank to handle the huge war debt — and to create a standard form of currency.

26. Alexander Hamilton Facts that you must know: • Born in Charlestown, British West Indies. (not American born, in the Caribbean Sea) • Was an orphan and later moved to US for education. • Became a founding father, soldier, and was close to George Washington. • Helped establish the Federalist party. • Early political parties where Federalist or Democratic/Republican. • Established 1st bank of New York. • A signer of the US Constitution.

27. Alexander Hamilton Facts that you must know: 1st Secretary of the Treasury and established the US Mint. Died in a duel with Vice President Aaron Burr. Face is on the $10 bill. One of 2 people whose face is on money, but was not a President. Face is carved in Million Dollar Staircase in NY.

28. Interesting Fact:(no, you are not responsible to study this information!) • Dueling was common up until the 1830s • In a typical duel, each party acted through a second. The seconds' duty to try to reconcile the parties without violence. An offended party sent a challenge through his second. • If the recipient apologized, the matter usually ended. If he elected to fight, the recipient chose the weapons and the time and place of the encounter. • Up until combat began, apologies could be given and the duel stopped. After combat began, it could be stopped at any point if there was an apology. • Had to shoot within 3 seconds (wasn’t common to “take aim”). • Guns at this time were not very accurate.