What money is and where it comes from

AngieAside from being fun to have, money helps you get through everyday life. Money is how we measure value and the cash and coins — also called currency — are what we use every day to pay for goods and services.

Most countries have their own currency. In North America alone, there’s the Canadian dollar in Canada, the U.S. dollar in the U.S., and in Mexico, the peso.

Map showing Canada, United States and Mexico

AngieEver wonder where all those coins and bills come from in the U.S.? Well, it’s created, or “minted,” by the Treasury of the federal government. The Treasury carefully controls how many dollars and coins are distributed.

When you think about it, money is the glue that binds products, services, and people together in our economy. The engine of our economy runs on the things and ideas people create, but money is what allows people to create — and then buy — those creations.

Money moves through lots of hands in the economy. As you’ll see next, money moves in sort of a circle, and it always passes through banks.

Click the Next button to learn how money moves through the economy.