Hello, my name is Mr. Tajiman, and today I'm gonna be teaching and learning with you about financial education.

That's all about money, how it makes us feel, and where we might see it and use it.

I hope you enjoy the lesson.

Let's get started.

This is the outcome for the lesson today then.

By the end, we want you to be able to say, "I know that money has developed over history in different forms." These are the key words that you are gonna hear today.

I'd like you to repeat them back to me so you can get used to saying them.

I'll say my turn, say the word and then I'll say your turn and you repeat it back.

Ready? Okay then, my turn.

Exchange.

Your turn.

My turn.

Barter.

Your turn.

My turn.

Bank.

Your turn.

My turn.

Account.

Your turn.

It's really important for us to know what each of these words means, especially because some of these words can mean different things in different contexts, but today we are thinking about financial education.

Exchange is to give something to somebody and receive something in return.

Barter is to exchange goods or services for other goods and services without using money.

Bank is an organisation that provides financial services, for example, keeping or lending money, and an account is an arrangement with a bank to keep money there and to record what has happened to the money.

This is the outline for today's lesson on why do we have money then? We're gonna start by thinking about a brief history of money.

Should be good fun.

Then we're gonna think about modern money.

In the lesson, you are gonna meet Jun and Sophia.

Hi Jun.

Hi Sophia.

They're gonna help us along the way by telling us the history of money in a fun way.

Here we go then.

Jun starts by saying, "I'll swap one of my cards for your shiny." Do you have cards that you ever trade? Do you have special ones like shiny versions? "Is that a fair offer?" So Jun is offering to swap one of his cards for Sophia's shiny.

"No way," says Sophia, "My shiny is worth two of your cards." "Okay, I'll give you two cards," says Jun.

Sophia and Jun have bartered and exchanged.

So they chatted about what the value of the cards that they had were, but they weren't using money to do a swap or an exchange.

Sophia and Jun discussed their exchange.

"I got something new without money." "I think money was involved.

The cards we exchanged were paid for with money." Ah, I think Sophia might be right.

You get hold of trading cards by paying for them in the shops in the first place.

You might then start to trade them, but actually money was what you used to get them originally.

Okay, let's check your understanding so far.

Think of a time that you have swapped or exchanged.

Was it fair? How did you know? Pause the video and consider those questions.

Welcome back.

Did you think of any examples? Were they fair? How can you make sure that an exchange is fair? Well, it is fair when you exchange things that are of the same value.

So that's a really crucial point.

If you are making an exchange or a swap, you need to make sure that the items you're swapping or exchanging are the same value.

Then it stays fair.

Okay, we've got Sophia and Jun and it looks like they've put on some hats.

I think they might be playing a bit of a role here.

Let's see.

Money developed over time.

Before money existed, people just traded, swapped, or exchanged things.

We can see there, Jun's got a chicken and Sophia's got two sacks of something.

I wonder if we'll find out what she's got.

Agreeing on a fair exchange was called bartering.

"I'd like two sacks of flour, please." Aha, that's what Sophia's got.

"That'll be one chicken, says Sophia." So they exchange what they've got.

Sometimes this was problematic.

Jun says, "I'd like one sack of flour, please." Sophia says, "That'll be half a chicken." Oh, dear.

How are they gonna get half a chicken? What's the problem here? Hmm.

I don't think you can give over half a chicken.

Some items did not divide up into smaller amounts.

"Here you go.

Five apples for one sack of flour." "Erm," says Sophia.

I'm not sure she's happy with that exchange.

What is the problem there? I wonder.

Some items didn't last very long.

You can see the apples that Jun is offering are very old.

They're rotten.

There's even a worm living in one of them.

I'm not sure that Sophia thinks that that's a fair deal.

"Here you go," says Jun, "Five cows for a new hut." There's the five cows.

Sophia says, "Erm, have you got a bag I can use?" What's the problem here? Well, some items weren't very easy to carry around.

It's not easy to take five cows home with you, is it? "Where am I going to put all these?" Says Sophia.

What's the problem here? Well, some payments were difficult to store.

Unless you are a farmer and you have space for cows, you can't very well keep five of them easily.

People started to use small things that they could exchange for things they wanted.

Some people started using shells, some used beads, and some used coins.

Coins were made from a certain mass of metal and had a fixed value.

Everyone agreed how much they were worth.

So we've got a similar situation to what we had earlier here, except instead of bartering, we are now starting to actually use money.

Jun says, "I'd like two sacks of flour, please." and Sophia replies, "That'll be four coins then." Now we've got a new situation.

Jun says, "Here you go, 1000 coins for a new hut." And Sophia says, "How can I lift all of those?" 1000 coins would be quite heavy.

Think about a full piggy bank, and that probably won't have 1000 coins inside it.

What's the problem then? Well, coins could also be problematic.

So people invented bank notes, which were worth lots of coins.

"Much easier to carry," says Sophia, Why are bank notes much easier to carry? Hmm.

Ah, because they're made of paper, they're much lighter.

Okay, let's check your understanding so far.

Why were bank notes invented? Was it A, coins were very fiddly and kept getting lost? B, coins were made of metal and bank notes were made of paper so they could be cut in half.

Or was it C? Multiple coins could get too heavy and be difficult to carry.

Pause the video here and consider your answer.

Welcome back.

The answer was C.

Multiple coins could get too heavy and be difficult to carry.

Let's do the first task then.

Number one, you've got to order the following payment types from oldest to newest.

We've got A, coins, B shells, C, bank notes, D, bartering and exchanging.

For number two, you're gonna use the cards, shuffle them and turn them over one at a time.

Act out the use of the payment type that you reveal.

That should be fun.

Okay, pause the video here and have a go.

Welcome back.

Here are the answers for the first one, bartering and exchanging was the oldest.

Then shells, then coins, and then bank notes were the newest.

And for number two, I hope you enjoyed it.

You can see that Jun says, "The hats were very useful in the end." And Sophia replies, "Yes, I knew they would work." Did you use hats whilst you were doing it? Maybe.

Let's move on to part two then.

Modern Money.

Banks developed to keep money safe for people.

They keep a record of how much money has been put in and how much has been paid out.

This is called an account.

The money isn't always in sight, but it is kept safe.

Cheques are a note to the bank from the buyer instructing the bank to pay the seller a certain amount from their bank account.

So you can see on this check here, that £10.

99 has been spent and it's been spent at the supermarket.

So what is this check doing? It's instructing the bank to pay supermarket £10.

99, but it has to be signed, and you can see a signature has been included there.

That check can now be used to make a payment.

Lots of adults don't use coins, bank notes or Cheques anymore, they use electronic money.

Sophia says they use a contactless card.

My mom even uses her watch or phone.

Maybe you've seen this, you might have seen adults using some of this form of payment.

How do you think it works? Hmm.

Well, Jun says the phone or watch lets the bank know what they have spent.

Okay, let's check your understanding so far, true or false, electronic money isn't real.

Have a think about that, and I'll be back in a moment to reveal which of those answers is correct.

Pause the video now.

Welcome back.

That is in fact false.

It is real money, but it isn't represented by coins or bank notes, it is just shown as a number of pounds and pence that a person has.

Okay, it's time for the second task then.

I'd like you to complete the below by ticking true or false against each statement, and I'll read them now.

Electronic money has replaced coins, bank notes and Cheques.

Contactless cards, send instructions to a bank computer for payment.

Smartwatches can be used to make payment.

What do you think? True or false for each of those? That's number one.

Here's number two.

I'd like you to play a game using the cards below.

Turn them face down and pick them out one at a time.

Describe them to a partner without saying what they're called.

You can either act them out or describe.

So for example, I might find smartphone as the one that I've picked out, and I might describe that by saying, it's an electronic device that adults use to make a payment without having to use coins or bank notes.

Okay, that's one example.

It's over to you now to play that game.

Pause video here and enjoy.

Welcome back.

Let's mark the table to begin with.

Electronic money has completely replaced coins, bank notes and Cheques.

Well, that's false.

Lots of people still use coins or notes.

In fact, you may well have used coins or notes at some point.

They're often used at things like school, discos, or perhaps at cake sales.

The second one is true.

Contactless cards send instructions to a bank computer for payment.

And the third one is also true.

Smartwatches can be used to make payments as well.

Did you have a go at the game? Well, let's see what Sophia and Jun did.

Sophia got coins and she said, "Round discs of metal used to pay for stuff." That makes sense.

Jun got Cheques, "Notes of paper that instruct the bank to pay for something." Brilliant, Jun.

Brilliant, Sophia, well done.

Did you play the game? Did you enjoy it? I hope so.

Okay, let's summarise then.

We were thinking today about why we have money.

Well, money hasn't always existed.

There have been several ways to pay for things throughout history.

People used to barter and exchange things to get what they needed, but this didn't always work brilliantly, so coins were invented.

Later on, people started to use bank notes and cheques as well as keeping their money safe by giving it to a bank to look after.

Nowadays, lots of people pay for things electronically using contactless cards, smartphones, or even smartwatches, and I've no doubt that in the future there'll be some even newer ways to make payments.

We'll have to wait and see, I suppose.

Thanks for your learning today.

I really enjoyed it, and I hope you did too.

Maybe I'll see you again for another financial education lesson.

Bye for now.