Social Studies - 2018-19

VS.4d - Money, Barter, and Credit

The student will demonstrate an understanding of life in the Virginia colony by

d) describing how money, barter, and credit were used.


Adopted: 2015

BIG IDEAS

  • People have needs and wants that often exceed the limited resources that are available to them.
  • Resources are distributed unequally.
  • Due to the unequal distribution of resources, individuals must determine ways to meet their needs and wants. Money, barter, and credit are ways individuals try to obtain the resources they need.


UNDERSTANDING THE STANDARD

Money was not often used in the early Virginia colony.

Because farmers could not pay for goods until their crops were harvested, credit was important in Virginia.


ESSENTIALS

Terms to know

  • money: A medium of exchange (i.e., currency, which includes coins and paper bills)
  • barter: Trading or exchanging of goods and services without the use of money
  • credit: Buying a good or service now and paying for it later
  • debt: A good or service owed to someone
  • savings: Money put away to save or to spend at a later time

Few people had paper money or coins to use to buy goods and services.

Barter was commonly used instead of money.

Tobacco was used as money. A tobacco farmer could use his tobacco to pay for goods and services.

Farmers and other consumers could also buy goods and services on credit and pay their debts when their crops were harvested and sold.

Colonial Virginia had no banks.


KEY VOCABULARY

Updated: May 18, 2018