Do you have a pet? Would you trade something for your pet? If someone gave you money for your pet, would you trade your pet for money? Would you trade your pet for food if you were hungry? Would you trade your pet for five beans? In the story we'll hear in our lesson, that is just what happens!
In this lesson you will identify that barter is trading without money. You will also explain that people voluntarily exchange goods and services because they expect to be better off after the exchange.
If you want a new pair of shoes, how do you go about getting them? You have to EXCHANGE something for the shoes. Exchange means to trade something for something else. What would you trade the store clerk for the pair of shoes? Would you give the clerk money for the shoes? Could you trade a hamburger for a pair of shoes?
If you wanted a pair of shoes that your sister or brother had, could you trade something with your sister or brother for the shoes? Can you think of something your sister or brother might want--other than money-- that you could trade for the shoes? Trading of this sort is called BARTERING. BARTERING is trading without money.
When you make a trade, both people should be satisfied after the trade. Why?
In this lesson you will be given a series of opportunities to exchange one item for another. Only exchange items when you think you will be satisfied with the trade. You will need to be prepared to explain which exchanges are examples of barter and which ones involve the use of money.
Listen to your teacher read the story about "Jack and the Beanstalk" or read it on your own . Be sure to listen to the part where Jack trades his pet cow for beans.
|Was the old man satisfied he got the cow? Was Jack satisfied that he got the magic beans? When you trade you should both be satisfied. Was Jack's mom satisfied? What did she want Jack to get in trade for the cow?|
But Jack and the old man traded the cow and beans. The old man bartered the beans for the cow.
Do you think Jack's mom was satisfied about the exchange of the cow for beans at the end of the story? Do you think Jack got Milky White back from the old man?
When you exchange one thing for another, the trade should make both people satisfied. You should not trade for something you do not want. When you trade and you don't use money, it is called barter.
Try The Trading Game to practice trading with others.