Citizen-created money helps town (Photo: Darren McCollester/ Getty Images via Newscom)

In Great Barrington, Massachusetts, many people spend BerkShares instead of dollars when they go shopping in the town. The BerkShare is Great Barrington's local currency. It is named after Berkshire, the county in which Great Barrington is located. A group of Great Barrington citizens began printing the money last year to encourage local people to spend their money within their community. This boosts the town's local economy by increasing the circulation of money among local residents, and among small businesses owned by residents.

Money is what societies use to obtain goods and services, and to pay off debts. Local currency, like the BerkShares, has existed since America's early days. Citizen groups–but not cities or states–have the right to make their own money. The money cannot look anything like regular dollars and can be used only within a specific area. For example, BerkShares can be used only in local shops in Great Barrington, as well as in surrounding Berkshire communities. The money used is made of paper because federal law bars citizens from making coins.

Communities in eight other states, including California, Kansas, and New York, have their own local money. Great Barrington's BerkShares, however, are unique because they can be exchanged for regular money. For example, 100 BerkShares can be exchanged for $90 in regular money at local Berkshire banks.

Thousands of years ago, people would trade goods or services for other goods or services in a system known as bartering. In addition, beads, shells, or even livestock like cattle were used as money. Eventually, societies developed paper money and coins.