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Year 3

Why do we have money?

I know that money has developed over history in different forms.

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New
New
Year 3

Why do we have money?

I know that money has developed over history in different forms.

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Lesson details

Key learning points

  1. Money was invented as trade developed.
  2. Money is more than just coins and notes.
  3. Money can be exchanged electronically.
  4. Banks provide a way to keep your money safe.

Keywords

  • Exchange - To give something to somebody and receive something in return.

  • Barter - To exchange goods or services for other goods and services without using money.

  • Bank - An organisation that provides financial services, for example keeping or lending money.

  • Account - An arrangement with a bank to keep money there and to record what has happened to the money.

Common misconception

Pupils might find it hard to understand the idea of money not being physically represented but still recorded using a bank account.

Ask children to share their understanding of bank accounts first. Try linking the concept of a bank account with videogame points systems or currencies to help children relate.


To help you plan your year 3 financial education lesson on: Why do we have money?, download all teaching resources for free and adapt to suit your pupils' needs...

You might want to consider using some drama here. Roleplay the history of money with your pupils rather than getting them to look through the slides. You could even use some props! You might want to discuss money around the world to reflect different nationalities and cultures in your class.
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Content guidance

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Supervision

Adult supervision recommended

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Licence

This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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6 Questions

Q1.
Tick the items that can be afforded with £5
Correct answer: Toy car £5
Correct answer: Ice Cream £1
Cuddly Panda £7
Q2.
Tick the items that you would need to save up to be able to afford if you only had £5
Sunglasses £5
Correct answer: Cinema ticket £7.50
Correct answer: Feed the alpaca experience £10
Q3.
A ticket to the zoo costs £12 and you have £5 in total. How much more will you need to save to be able to afford to go?
Correct Answer: £7, 7, 7 pounds, seven, seven pounds
Q4.
Which of these describes a bank?
A place you can go to borrow a book.
A public building where you can swim and do other sports.
Correct answer: A place or organisation where you can keep or borrow money.
Q5.
True or false? Money always makes you feel good.
True
Correct answer: False
Q6.
Which of these helps you to buy more expensive things over time?
Correct answer: Saving
Spending
Giving

6 Questions

Q1.
What does the word barter mean?
Correct answer: To swap goods or services for other goods and services without using money.
An organisation that provides financial services, for example keeping or lending
To pay at a till for something.
Q2.
What does the word exchange mean?
To save up enough money to buy something expensive.
An organisation that provides financial services, for example keeping or lending
Correct answer: To give something to somebody and receive something of equal value in return.
Q3.
Why did people start to exchange shells, beads or coins?
Correct answer: Because they were smaller and more portable.
Because they were valuable objects.
Because people liked to collect them.
Q4.
Why were banknotes invented?
Coins were always getting lost.
You can fold and cut banknotes.
Correct answer: Lots of coins could get too heavy to carry.
Q5.
Which type of payment is the oldest?
Banknotes
Cheques
Correct answer: Coins
Q6.
Which type of payment is the newest?
Cheques
Correct answer: Contactless cards
Shells

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