← Back to Session 1

Session 1 Study Guide: What Is Money?

Money, Values & You — A Financial Literacy Course for 6th Graders

Key Vocabulary

TermDefinition
BarterThe direct exchange of goods or services without using money.
Double Coincidence of WantsBoth people in a barter trade must want exactly what the other has. This makes barter difficult.
MoneyAnything a group agrees to accept in exchange for goods and services. Works because of shared trust.
Intrinsic ValueValue that comes from the thing itself (e.g., water quenches thirst).
Assigned ValueValue people agree to give something (e.g., a $20 bill is just paper but agreed to be worth $20).
HyperinflationWhen money loses value very quickly because trust in it collapses.
Tool (money as)Money helps you accomplish purposes, like a hammer helps you build. It is not the goal itself.
AmanaIslamic concept of trust/stewardship. Everything we have is entrusted to us and we must care for it wisely.
StewardshipTaking care of something responsibly, knowing you will be accountable for how you used it.

Key Concepts

Money is a human invention, not a natural resource. It was created to solve the problems of barter.
Money works because of shared trust. Without agreement, paper money is just paper.
Money is neutral — not good or bad. What matters is how and why you use it.
Amana teaches that we are caretakers of wealth, not ultimate owners. This changes how we spend, save, and give.

Lesson Summaries

Lesson 1: Origins of Money

Before money, people used barter (direct trade). Barter broke down because of the double coincidence of wants. People invented money — from shells to coins to paper to digital — as a shared agreement that solved these problems.

Lesson 2: What Gives Money Its Value?

Money has value because of trust and agreement, not because of what it is made of. Intrinsic value comes from the thing itself; assigned value comes from agreement. Governments back currency and maintain trust.

Lesson 3: Money as a Tool

Money is a tool that helps accomplish goals. It is neutral — not good or bad. When money becomes the goal instead of the tool, people lose sight of what matters. Purposeful spending means asking "why" before you buy.

Lesson 4: Amana — We Are Caretakers

Amana is the Islamic concept that everything we have is a trust. We are stewards, not ultimate owners. This means spending wisely, saving, giving, avoiding waste, and being grateful.

Review Questions

  1. What is barter and why did it break down as communities grew?
  2. Explain the double coincidence of wants in your own words.
  3. Why is a $20 bill worth $20 even though the paper costs almost nothing?
  4. Give an example of intrinsic value and an example of assigned value.
  5. What does it mean to say "money is a tool, not a goal"?
  6. What is Amana and how does it change the way we think about money?
  7. What is the difference between an owner mindset and a steward mindset?
  8. Name three ways you can practice stewardship with your own money.
Did You Know? The word "salary" comes from the Latin word "salarium," which is related to salt. Roman soldiers were sometimes paid in salt because it was so valuable for preserving food!
Did You Know? The first known coins were made around 600 BCE in Lydia (modern-day Turkey). They were made of electrum, a natural mix of gold and silver.