Trade by Barter, Economic Concepts Poster 2008

---

TRADE BY BARTER 

Barter is a type of trade in which  

individuals exchange goods and  

services for other goods and services 

instead of using money. Trade is  

voluntary and results in making us 

better off.  Goods and services may 

also be traded for money.

Artist:  Kala Bailey    •   5th Grade    •   Riverlawn Elementary School    •   Pulaski County

Trade

           Barter

by

---

VCEE is a nonprofit organization providing 

Virginia’s K-12 teachers with professional 

development, quality curriculum and other 

resources to promote economic and financial 

education.  Visit www.vcee.org or contact 

VCEE or one of its affiliated centers to learn 

about specific opportunities. 

VCEE Network Contacts

VCEE

Sarah Hopkins Finley

[phone]  [e-mail]

Christopher Newport University

Gemma Kotula

[phone]  [e-mail]

George Mason University

Rachel Powell

[phone]  [e-mail]

James Madison University

Lynne F. Stover

[phone]  [e-mail]

Longwood University

Diana Shores

[phone]  [e-mail]

Lynchburg College

Cheryl Ayers

[phone]  [e-mail]

Old Dominion University

Ruth Cookson

[phone]  [e-mail]

Radford University

Barbara Taylor

[phone]  [e-mail]

University of Virginia’s College at Wise

Gary Stratton

[phone]  [e-mail]

Virginia Commonwealth University

Suzanne Gallagher

[phone]  [e-mail]

Virginia Tech

Michael Ellerbrock

[phone]  [e-mail]

BARTER – TRADING GOODS

Definition/Background

Barter is the direct trading of goods and services between people. It is the oldest form of exchange 

- trading goods and services with people for other goods and services. People voluntarily exchange 

goods and services because they expect to be better off after the exchange. However, to barter suc-

cessfully, both parties must have the good or service in the quantity that the other desires. Money is a 

more efficient means of exchange. When money replaces barter, this generally makes exchanges less 

costly and easier to do. 

Teaching Ideas

1. Challenge the students to write a haiku that explains the process of bartering; trading without 

money. (A haiku is a three-lined poem containing five syllables in the first line, seven in the middle, 

and five again in the last line.) 

2. Instruct the students to draw and label three of their favorite things on index cards. They are then 

to trade the “pretend” things with other students in the class. Discuss the activity. Was it easy or dif-

ficult to conduct a trade? For those who traded, ask if they were more or less satisfied after trading.

3. Discuss the circumstances under which you might trade one bottle of water for a working cell 

phone.

4. Divide a piece of chart paper in half. Label one side “Reasons to Trade” and the other side 

“Reasons NOT to Trade.” Tell the students that while it is common knowledge that “voluntary trade 

creates wealth” the principal is not so sure that first graders should be trading their food items during 

lunch. Have the students supply statements to both lists. (After the activity, clarify that this situation 

was hypothetical.) 

5. Have the students write a fable with at least three talking animals in it. The moral of this fable 

should be “He who trades last, trades best.” 

Lessons & Resources

Print Lessons

Spotting Economics: From Africa to Ice Cream, Lesson 13: Trading In Mama Provi’s Market 

(elementary)

Master Curriculum Guides in Economics: K-2, Lesson 22: Birthday Barter (elementary)

Online Lessons

Saturday Sancocho (elementary)

http://www.stlouisfed.org/education/lesson_plans/SaturdaySancocho.pdf

Make Me an Offer – Barter and Trade (elementary)

http://www.usmint.gov/kids/teachers/lessonPlans/wjns/2004/01-keelboat.pdf

Rooster and the Bean Seed (middle)

http://www.ncee.net/ei/lessons/lesson1/

Why Do We Need Money? (middle)

http://www.econedlink.org/lessons/index.cfm?lesson=EM629&page=teacher

Fed Resources

Saturday Sancocho - Children’s Literature Lesson (elementary)

http://www.stlouisfed.org/education/lesson_plans/elementary.html

Richmond’s Money Museum (elementary and middle)

http://www.richmondfed.org/about_us/our_tours/money_museum/audio_tour/barter.cfm

On-line activity - Escape from Barter Island (elementary and middle)

http://www.clevelandfed.org/learning_center/online_activities/barter_island/index.cfm

The Story of Money – Comic (middle)

http://www.newyorkfed.org/publications/result.cfm?comics=1

Too Much, Too Little – Comic (middle)

http://www.newyorkfed.org/publications/result.cfm?comics=1

Once Upon A Dime – Comic (middle)

http://www.newyorkfed.org/publications/result.cfm?comics=1

Once upon A Dime – Video (middle)

http://www.stlouisfed.org/education/video_library.html

Literature

 

• We’re Riding on a Caravan: An Adventure on the Silk Road by Laura Krebs. Barefoot Books, 

2005. A caravan of silk traders takes a yearlong journey on China’s Silk Road bartering for various 

products along the way. [Grades K-3]

• The Scarecrow’s Hat by Ken Brown. Peachtree, 2001. Before Chicken can use Scarecrow’s hat as 

a nest, she must barter with Badger, Crow, Sheep, Owl, and Donkey. [Grades K-3]

• The People of Sparks by Jeanne DuPrau. Random House, 2004. When Lina and Doon, (The City of 

Ember), are invited to join the people living in the village of Sparks they quickly learn that this rustic 

community uses barter for the exchange of goods and services. [Grades 4-8]

Contact one of our economic education specialists or go to 

www.richmondfed.org/educational_info for resources on teaching economics and 

the Federal Reserve System. Among these free and easy to use resources you’ll find 

lesson plans, workshop information and publications. 

The Virginia Council on Economic Education, 

in cooperation with the Federal Reserve Bank of 

Richmond, is pleased to provide this poster 

featuring  a  winning  entry  from  the  2007-2008 

Color the Economic Concepts Contest. 

Teachers in Grades K-8:

 Give your students the 

opportunity to illustrate their knowledge of eco-

nomic concepts in a creative and fun way. They 

may be selected for a poster next year! Winning 

students also receive a $50 U.S. Savings Bond.

Entries must be received by April 30, 2009. 

See 

www.vcee.org for more details.

Lis Turner

Economic Education Specialist  

[e-mail]  

[phone]

[phone]

Amanda Gibson

Economic Education Specialist

[e-mail]  

[phone]

[phone]