Money and Credit in the Virginia Colony Money in the Virginia Colony • Money was not often used in the early Virginia Colony. • Money – a medium of exchange – (currency, which includes coins and paper bills). • Barter – trading or exchange of goods and services without the use of money! Money in the Virginia Colony • Credit – buying a good or service now and paying for it later. • Debt – a good or service owed to another. • Saving – money put away to save or to spend at a later time. Money in the Virginia Colony • Few people had paper money and coins to use to buy goods and services. • Bartering (trading) was commonly used instead of money. • Tobacco was used as money! Tobacco Used as Money • A tobacco farmer could use his tobacco to pay for goods and services. • Farmers and other consumers (customers) could also buy goods and services on credit and pay their debts when their crops were harvested and sold. • Colonial Virginia had NO BANKS!