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Description
Flashcards by cecilia valente, updated more than 1 year ago
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Created by cecilia valente
over 3 years ago
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| Question | Answer |
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* Money is a
kind of technology that allows us to get what we need
Image:
Logo (binary/octet-stream)
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* In the modern world money looks like coins, banknotes, cards or even apps. |
| * In the modern world you can use the internet and technology to spend or even save and invest money | * But the word 'money' involves much more than what we use and know these days |
| * In this class we go back in time to shop like cave children. They did not have cash, cards or apps but they still got what they needed and liked by... | ...trading something they had with something someone else had. This trade off is called 'barter'. |
| *Barter seems an easy way to pay for goods and services but it can be tricky because it depends on two chances (or coincidences) | 1) Chance #1: I have right now something you want right now 2) Chance #2: You have right now something I want right now |
| * When cave dwellers could not barter they gave credit to people they trusted | * Credit is a Latin word that means 'to trust/ to believe' * we give credit ONLY to people we trust |
| * If you give credit, you are the 'creditor'. A creditor gives a good or a service and accepts to be paid later | * If someone gives you credit, you are in debt to the creditor and you are expected to pay for the goods and services at a later date * you are a debtor |
| * In small communities, like prehistoric villages, people knew each other very well | * This made it easy to decide who deserved credit. The villagers who behaved honestly were trusted and got credit when they could not barter |
| *Today we still use credit to pay for goods and services and trust is still key to getting credit | *If you pay for the goods and services you got credit for, it will be easier to get credit again in the future. |
| * CREDIT and BARTER ARE OLDER THAN MONEY, WRITING OR EVEN NUMBERS | * Next time you barter or you trust someone to pay you later, remember: it was cave dwellers who invented these payment methods. |
| * So, give them credit for their intelligence and resourcefulness... | * Which reminds me: 'credit' is not just about money. To give someone credit for something also means to recognise their achievements and to praise them for those achievements. |
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