Long ago, people did not need money. They lived on wild animals, fruit and other plants.
As time went by, people learned to raise animals and crops. Sometimes, families produced more than they needed, so they started to trade with other families. However, it was not the kind of money we use today. They used shells, rice, salt, large stones, etc.
During 1st century BC. people began using coins as money. They soon found that coins were easier to carry than goods and lasted a long time. Later, countries began to make their own coins. The Chinese were the first to use paper money. The Italian traveler Marco Polo saw the Chinese using money when they visited China in the 1200s. However, European countries did not start using paper money until the 1600s.
Today, we have many ways to pay for things. We don't often use coins or paper money. People often prefer to pay for things by card or through their mobile phone. These ways are easier and safer than carrying around lot of "real" money.