unit 3 understanding money unit 3. learning outcomes at the end of this unit, students should be...
TRANSCRIPT
![Page 1: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/1.jpg)
Unit 3Understanding Money
Unit 3
![Page 2: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/2.jpg)
Unit 3
Learning Outcomes
At the end of this unit, students should be able to:
Understand the history of money Describe the form that money takes in
today’s society Understand saving Understand compound interest and how
it works
![Page 3: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/3.jpg)
Barter Barter preceded the use of
money System for exchanging goods Number of issues
Inefficient Items many not have similar
value Coincidence of wants – if
nobody wants what you have to barter = no deal
![Page 4: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/4.jpg)
History of Money
1000 BC – China began to manufacture copper cowrie shells
600 BC - First minted coins – Lydia (not western Turkey). Made from electrum (mixture of silver and gold)
118 BC – Leather money used in China – believed to be early form of banknote
![Page 5: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/5.jpg)
History of Money
30 BC – Cesar Augustus reformed the Roman monetary system. Issued gold, silver, brass and copper coins
800 AD – China started using paper money Easier to carry and could not use metals for
making essential objects Called 'fei qian‘ - 'flying money' 1200 AD – The Florin, minted in Florence, Italy
became a widely accepted currency in Europe
![Page 6: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/6.jpg)
History of Money 17th Century – Paper
money was first used when Sweden began printing own paper monetary certificates
Move to paper helped to increase and facilitate international trade
![Page 7: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/7.jpg)
Ireland – Notes and Coins
Ireland introduced first notes and coins in 1928
Original notes featured Lady Lavery
Coins featured Irish animals and fish
‘Pegged’ to sterling until 1979 when one-to-one exchange rate was finally broken
![Page 8: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/8.jpg)
History of Money
January 1999 – Eurozone came into existence
11 Member states signed up UK opted to retain sterling currency Exchange rate IR£1 = €1.27 Euro Notes and Coins officially
introduced on 1st January 2002
![Page 9: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/9.jpg)
How do we use Money? Irish people – heavy users of cash and
cheques Average 36 withdrawals from ATMs each year
– 50% higher than EU average Cheque usage declining but still very high 2013- National Payments Plan aims to
increase usage of electronic payments Estimated that Irish economy could save €1bn
if switch from paper to electronic
![Page 10: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/10.jpg)
New Developments
Bitcoin introduced in 2009
Virtual Currency No central authority –
controversial Peer-to-peer payments Future?
![Page 11: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/11.jpg)
The Euro
Legal tender in 18 countries (2014)
Notes – 7 denominations Coins – 8 denominations. Coins have common side
and national side
![Page 12: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/12.jpg)
What is Money?
“Money is anything that is generally accepted as payment for goods and services and repayment of debts…”
What forms are available? Can you think of a few examples…
![Page 13: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/13.jpg)
What are Savings?
“Savings are the process of setting aside money until a future date instead of spending it today. The goal of saving is provide funds for emergencies, short term goals and investments”
OR“A fund of money put as a reserve for the future”
![Page 14: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/14.jpg)
Uses of Money
Students understand 4 main uses on money from communion to birthday presents:
1. Saving (10%)2. Giving (10%)3. Investing (10%)4. Spending (70%)
Example: allowance €/£ 10 per week but put €/£1 in savings for Christmas, holidays, birthdays, college, debs etc.
![Page 15: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/15.jpg)
1. A customer deposits savings in a bank / credit union.
2. Added to the pool of savings held 3. The bank / credit union uses these funds to fund
loans to other customers.4. The bank / credit union gets income from the
interest that customers pay on their loan. 5. This income is used to run the bank / credit union
and it is also given back to customers in the form of interest on their savings.
How do savings work?
![Page 16: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/16.jpg)
How do savings work?
A depositor / investor will look at the options on how interest is calculated and credited?
He / she will assess the A.E.R.( Annualised Equivalent Rate of Return)
![Page 17: Unit 3 Understanding Money Unit 3. Learning Outcomes At the end of this unit, students should be able to: Understand the history of money Describe](https://reader036.vdocument.in/reader036/viewer/2022081603/56649d705503460f94a53238/html5/thumbnails/17.jpg)
Compound Interest
This is the interest added to the principal so you get interest on interest.
The COMPOUND ANNUAL RATE ( c.a.r.) is the rate you get when calculating your interest. Example: how much will you receive if you invest €/£500 @ 4% per annum for two years?