Pocket Cents Home Pocket Cents: My life. My money. Brought to you by NCUA - the National Credit Union Administration Dig in and Learn more! Start Your Savings The Power of Dividend The Value of a Dollar Money 101 How Money is Made Why Money is Used Foreign Currencies What's a Credit Union? History of Credit Unions Credit Unions in Schools Credit Unions in Schools Page ContentWHY MONEY IS USED Before the invention of money, people traded what they had for other goods and services they needed. What if money wasn’t invented and you needed to figure out how to trade a cow to buy a new backpack? You can see money was needed to make it easier for people and countries to buy sell goods to each other. Over time money became more important than bartering. Because we have a single economy, in the United States money is how we pay for goods and services. Imagine how confusing it would be if every state had its own currency. That was the case in the early colonial days. Today all 50 states - and several other countries, including Ecuador, El Salvador, and Panama - use the U.S. dollar. The dollar is also an international currency that is accepted around the world.