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Theeconomy, or buying and selling of goods and services, was centered around the barter system. Thebarter systemis the trading of goods or services for other goods or services. For example, say your friend has a new video game that you want and you are willing to trade for it. So, you begin to barter with your friend, discussing back and forth what your friend would like in exchange for the new video game. In the end, your friend decides to trade the new game for three of your older ones. You and your friend just participated in a bartering system. This was the system that the ancient Egyptians used to keep their economy thriving.

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Ancient Egypt was known as a supply state. Basically, all of the food that was harvested was collected and stored in temple- or state-run organizations. These organizations would then distribute the food based on what each person needed. So, if someone could not work, that person wassuppliedwith enough food to survive.

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Ancient Egypt was the land of pharaohs and pyramids and also a land without money! Well, at least not the kind of money we use today. In this lesson find out how ancient Egypts economy thrived.

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When you think about ancient Egypt, what comes to your mind? You may picture mummies in ancient tombs or majestic pharaohs sitting on thrones. What you should picture instead are farmers. Thats right! Because of Egypts location near the Nile River, land was fertile, or good for planting crops, so grain was plentiful! That is why grain was used as money. The ancient Egyptians had no coins or paper money; instead they used things like grain as their money system. To truly understand this we need to take a closer look at Egypts location.

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Ancient Egypt was located on the Nile River and had some of the most fertile land in the ancient world. Ancient Egyptians grew many crops, and because coins and paper money had not yet been invented, their economy depended on using their goods, mostly crops, including grain, in a bartering system.

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All extra food was then used by these organizations to barter for more valuable goods. The organizations would hiremerchants, or businessmen who trade, to travel with their goods up and down the Nile River, stopping at various ports to barter their goods. The merchants would even barter with people from faraway lands who traded goods, such as cedar wood, that could not be found in Egypt.

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Grain was used like we use money today. When workers would work the fields they were paid in grain. They could then take that grain and use it to feed their own family, or if they had extra, use it to barter for other things that they needed. Most of the local bartering happened in the market, where people would meet together to trade bread, grain, fish, fruits and vegetables for things like fish hooks, leather sandals, linen and ceramic pots. However, what happened to the people who could not work? How did they feed themselves and their family?

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Ancient Egypt was located on the northeastern tip of Africa near what we now call the Middle East. The life of ancient Egyptians was centered around the Nile River. Each year the Nile River flooded and made the land around it very fertile and wonderful for growing crops! The Egyptian farmers grew many crops, such as wheat, barley, figs, vegetables and fruits. The most plentiful crops were grain crops.

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