Say it like this

Swapping something you have for something you want.

For the grown-up

Trade is voluntary exchange. Both sides do it because each values what they are getting more than what they are giving up, which is the quietly remarkable part: a good trade leaves both people better off without anything new being made.

The easy mistake

Careful here. A trade only works if both sides actually want it. Children discover this the hard way in a playground within about a week.

The full explanation

What Is Money?

A glossary entry is the short version. This one has the child explanation, the grown-up explanation, the questions and an activity.

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Words next to this one

Money A way to trade what you have for what you want, without having to find one person who has both. Value How much something is worth to you. It can be different for two people looking at the same thing. Price How much money somebody is asking for a thing. Not the same as what it is worth to you. Business Somebody fixing a problem for somebody else, who says thank you with money.