Kid’s Embarrassing question

I know I know I’m an grown up consultant, I know things of the world but there are some questions that still drive me crazy.

The nightmare is when your kids can ask you question you have really hard time to explain: the toughest?

“Dad, what’s money?”

seems an easy question right? and anyone would be able to answer in a few words right?

“…money are the things that are used to buy things…”

er is all we know about money? what is really an euro, and a dollar? and what is the exchange rate? and why the hell this exchange rate is so variable?

When I was younger i were thinking that the money were sort of note that say: you government hold the same value amount of gold and just to not make you walk with all that gold it gives you this sheet, or coin).

I was so naive, money is a lot more complicated than this, the value of your euro is…er  well i don’t know it depend when where and who you are mainly.

and who decide the value is somewhere but nobody can tell where. the market? your government? the world? god? the aliens?

I know I know this is because i’m not an economist and if I would have had a formal education in economics stuffs I would be probably able to say what money is… but since I’m not is someone out there that can help me to tell to a kid what money really is?




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