In Economic and Management Sciences (EMS) Grade 7, we learn that bartering was the first way humans traded. While it worked for small groups, it became very difficult as communities grew. To understand why we use coins and notes today, we have to look at the specific problems that made people look for a better system than swapping goods.
Disadvantages of Bartering: Why the World Moved Away from Direct Trade
The characteristics of traditional societies show us that people were mostly self-sufficient. By understanding the self-sufficient meaning, we know they didn’t need to trade often. However, when they did, they faced these major “headaches” of bartering:
1. The “Double Coincidence of Wants” Problem
This is a big phrase for a simple problem. To barter, you must find someone who has exactly what you need AND wants exactly what you have. If you have extra fish but need a clay pot, and the potter only wants grain, you cannot trade. This is the main reason why we need money—it is something everyone always wants!
2. Difficulty in Dividing Items
Imagine you have a cow and you only want to buy a small bag of salt. You cannot give the trader “half a cow” and keep the rest alive! Money is easy to divide into small amounts (like cents and rands), which is a huge advantage over trading livestock or large tools.
3. Goods Can Rot or Die (Store of Value)
Many items used in economic activities, like fruits or meat, do not last long. If you can’t trade them quickly, they go to waste. Money allows you to save your wealth for a long time without it rotting. This is a primary reason traditional societies did not need money when they lived day-to-day, but it became a problem as they tried to save for the future.
From Swapping Goods to the Promissory Note
Because of these issues, people began using things like gold and shells. Eventually, banks gave people a promissory note—a written “promise to pay”—which was much lighter and safer to carry. You can read more about this in Promissory Note 101.
While there are still advantages of bartering (like building friendships), our modern society simply moves too fast for it. To see more ways our world has changed, check out traditional society examples or our full guide on the differences between modern and traditional societies.
Even though bartering is hard, some cultures still find it creates a harmonious society. For example, 2 ways African traditional religion contributes to a harmonious society is by focusing on people’s needs rather than just the “price” of an item.
Grade 7 EMS: The Economy & History of Money
Here is the simplified Table of Contents for your Grade 7 EMS module:
| Lesson Heading (Linked) | Topic Summary |
| Characteristics of Traditional Societies | Core features of ancient, self-reliant communities. |
| Can You Imagine a World Without Money? | How ancestors thrived through sharing and nature. |
| Where Does Money Come From? | The transition from physical goods to currency. |
| Exploring the Meaning of Traditional Society in 2026 | Why ancient values still matter in the modern world. |
| Advantages of Bartering | The benefits of trading goods without cash. |
| Why Traditional Societies Did Not Need Money | How survival worked through self-sufficiency. |
| 2 Ways African Traditional Religion Contributes to Harmony | Ubuntu and respect as tools for community peace. |
| Promissory Note 101: How Money is Issued | Understanding the “promise to pay” system. |
| Five Types of Economic Activity in Traditional Society | Hunting, farming, herding, making, and bartering. |
| Self-Sufficient Meaning: Living Without Markets | Providing for all basic needs independently. |
| Traditional Society Examples | Lessons from the San, Inuit, and Yanomami people. |
| Why Do We Need Money? From Bartering to Currency | Why swapping goods became too difficult for trade. |
| Disadvantages of Bartering | Problems like rotting goods and double coincidence of wants. |
| Bartering Meaning: The Complete History Guide | A deep dive into the world’s oldest trade system. |
| What is a Traditional Society? | Full definition and evolution for Grade 7 prep. |
| What is Modern Society? | Features of our current high-tech, money-based era. |
| What is Bartering? (The Tradeless Exchange) | Everything you need to know about trading without cash. |
| Modern Society vs. Traditional Society: 7 Key Differences | A side-by-side comparison for exam revision. |