One of the most important things that anyone can learn at an early age is about currency and how to make change in both their local currency as well as the big international currencies. All the big commodities of the world including oil, gold and other metals are all priced in dollars this is why this is one of the most important currencies in the world today and also why it is important for the young to learn about it and other currencies across the world.
There are lots of different currencies used across the world. The most traded currency in the world being the US dollar. This is used in lots of countries across the world especially in the locality of the US. Other big currencies include the Euro the currency used across the European Union, Yen used in Japan, the British Pound used in the United Kingdom, Swiss Franc used in Switzerland & the Canadian Dollar used in Canada. There is also a new rising star currency in the way of the Chinese Renminbi. All of these currencies are backed by their own Central banking body. The Central Banks job in general is to maintain financial stability via controlling inflation with interest rates and more recently by quantitative easing. All the Central Banks are supposed to be independent from political interference.
All currencies across the world can be exchanged for one or another. For most of the general public this is carried out via one of the local banks or currency exchange companies. However the exchange rate is usually set by the market know as FOREX. When you generally try and change money. The company providing the service requires a commission to be paid on top of this they will usually not give the rate from the FOREX market but will change the currency with a mark up or spread to provide them with a way of making a profit from providing this service. This spread is usually different from company to company.
The FOREX market can be traded via a trading account however unless you are a very confident experienced investor and only invest what you can afford to lose as it has been known for people to lose their initial investment very quickly and because of the wide spread use of leveraging your initial investment and more could be wiped out almost immediately. Once this happens you will very quickly be contacted by the broker with what is known as a margin call. This is when the broker will ask for a bigger payment to cover the losses that have incurred. When this happens you are usually in serious trouble. You can also make a lot of money but you have to be confident in your abilities.
The Normal Person