Barter

Barter is trading one thing for another without using money. 

Barter is useful when two people each have something the other wants, so they agree on stuff to trade and then swap it. This can also happen with services, for example a plumber can fix a tap in a winery and be given a crate of wine.

Barter and money have been around longer than recorded history has, so we don't know which came first.   

The traditional idea has been that barter came earlier, and money arose to solve a problem: One person may not want what the other person has. For instance, Bob needs a new pair of shoes and John has those shoes. But Bob has eggs and John needs milk. This is where money would become useful, because anything can be traded for a set amount of money. Bob could pay John for the shoes and John could go to the store and buy some milk.  

 References 

Category:Commerce
Category:Money
Category:Simple living