Money and How We Earn It

1A hoe for a basket of beans

Long ago, before people used money, Niyonzima's great-great-grandfather needed a new hoe. He carried a basket of beans to the blacksmith. "I don't need beans," said the blacksmith. "I need a goat." So the old man walked to find someone who had a goat and wanted beans. It took him all day!

2From barter to money

Exchanging goods for other goods, without money, is called barter. Barter was hard:

• You had to find someone who wanted exactly what you had.
• It was hard to agree on value: how many baskets of beans is a hoe worth?
• Some goods cannot be divided. You cannot cut a cow in half to buy a small thing!
• Goods like bananas go bad if you keep them too long.

So people started to use money: something everyone accepts in exchange for goods and services.

3What money does for us

• We use it to buy and sell.
• It shows the value of things. The price tells us how much something costs.
• We can keep it to use later, and it does not go bad like bananas.

4Rwanda's money

Rwanda's money is the Rwandan franc, written Frw (or RWF). Rwanda began making its own francs in 1964. Today the money is issued by the National Bank of Rwanda (BNR).

Many people also pay with mobile money on their phones, or with a bank card. Look after money: do not tear it, write on it or leave it lying around.

5Activities that increase money

An activity that brings money into a family is called an income-generating activity. For example:

• Selling crops, such as beans, bananas and vegetables.
• Selling animal products, such as milk, eggs and meat.
• Running a small shop or a stall at the market.
• Making and selling crafts: baskets, pots, clothes or furniture.
• Working for pay as a teacher, nurse, builder, driver or tour guide.
• Renting out a house or a piece of land.
• Keeping savings in a bank or SACCO that pays extra money, called interest.

Children can help too, for example by caring for a kitchen garden or rabbits at home, without missing school.

Try it yourself