Where does money come from?

Where does money come from? (2 min 06 s)

Added on October 12, 2021


The flow of money is a cycle in which everyone plays a role.

Where does money come from? (2 min 06 s)

Added on October 12, 2021 | Desjardins Group

Note: The information in brackets describes the audio and visual content of the video that is not dialogue or narration.

[Light, upbeat background music playing]

Where does money come from? Pretty big question, right? Let's answer it together!

[A young girl on a swing comes down from the top of the screen.]

You've probably already heard the expression, "Money doesn't grow on trees" …

[Greenery and some coins appear. A coin falls to the ground and rolls.]

… which means it doesn't just magically appear.

[A circular arrow with 3 bubbles on top of it appears. The bubbles show an umbrella under the rain, a sea mammal doing a pirouette and a seagull floating on the water.]

It's part of a cycle.

[The sea mammal dives into the water and does another pirouette.]

Kind of like the water cycle.

[A seagull floating on the water enters the image from the right before taking off.]

And just like water—which evaporates to form clouds before it comes back down as rain …

[A cartoon character holds up an umbrella underneath rain pouring from the clouds above.]

… money is also part of a cycle; one in which we all play a role.

[A taco with a face and a chef's hat appears.]

Let's look at an example. Say, of a chef.

[The cartoon character is now wearing the chef's hat and holding a pan into which some coins are falling.]

Every week, he gets paid a salary to come up with tasty dishes.

[A padlock opens to let the coins in and then closes again. Next, we see a safe.]

He deposits his salary into an account at a financial institution.

[Cash is dispensed from an ATM.]

When he needs money, he can take out cash at the ATM.

[The ATM is now in a shopping basket. Coins come out of the top of the ATM.]

He can then use that cash or his payment card to pay for things …

[A pineapple, button, bowl of popcorn and the cartoon character, who's looking at an electronic device on a sofa, appear.]

… like groceries, clothes and movie tickets, and pay different bills, like his internet.

[Three stacks of coins pile up in front of a safe on the left-hand side of the screen. A sofa leg breaks, and the stacks get smaller.]

But he also keeps some of his money in his account so he can save for future goals or be prepared for the unexpected.

[A new sofa with 2 cushions appears onscreen.]

This is what we call savings.

[Coins roll like cars in front of a cityscape in the background.]

The financial institution is where lots of people keep their money to make sure it's safe …

[The cartoon character with the chef's hat appears.]

… like the chef!

[The coins roll from left to right on the screen and turn into tires. When they stop, a car body appears on the tires.]

The financial institution will also lend this money to someone who wants to buy, say, a house or a car.

[The car starts and exits the screen to the right.]

This is what we call a loan.

[The car enters the screen from the left and crosses it.]

And that's how money circulates.

[In a bubble, a forklift moves a stack of coins. Three other bubbles appear on a circular arrow: a piggy bank with coins dropping in, stacks of coins that are piling up and a car coming to a stop.]

Then, one day, it comes back to the financial institution in the form of someone else's salary or savings. It's just like the water cycle! This money cycle is the foundation of the economy.

[A rabbit comes out of an upside-down black hat.]

It may not be magical, but it sure is impressive!

[A shopping basket fills up with coins. Two coins are placed under the basket so it can roll like a car.]

The next time you see your parents paying for groceries or taking out cash at the ATM, you'll know that they're also helping circulate money.

[The cartoon character is shot out of a cannon with confetti.]

Well done! You've now finished watching our video on the money cycle.

End of transcript