By Miss O.

Colonial Economics

A medium of exchangeCurrency, which includes

coins and paper billsFew people had paper money

and coins to use to buy goods and services.

Share the 2 sentences you wrote down about your colonial character and what he or she might have bartered to get what he or she needed to live on.

Money

Trading/exchanging of goods and services without the use of money

Barter was commonly used instead of money.

Barter

Buying a good or service owed to another

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

Credit DebtA good or service

owed to another

Money put away to save or to spend at a later time.

Colonial Virginia had no banks.

Saving

Tobacco was used as money.

A tobacco farmer could use his tobacco to pay for goods and services.

Tobacco = $$$$