Thanksgiving is a time for reflection, gratitude, and feasting—a moment to pause and appreciate what sustains us. As we gather around our tables, it’s worth considering what might have been on the minds of the Pilgrims and Native Americans during that legendary “First Thanksgiving” in 1621. Beyond the food and camaraderie, there’s a less discussed but equally fascinating topic: money.
But wait—what kind of “money” did they use back then? And more importantly, what can we learn about the concept of money from those early interactions? Let’s dive in.
What Is Money, Anyway?
Before we explore the historical context, let’s get clear on the basics. At its core, money is anything people accept as a medium of exchange for goods and services. It serves three primary functions:
- Medium of Exchange: It allows us to trade without bartering.
- Store of Value: It retains purchasing power for future use.
- Unit of Account: It provides a standard measure for pricing goods and services.
In modern times, we use coins, paper bills, and digital currencies. But what about in 1621?
The Native American Perspective: A World Without Coins
For the Native Americans, “money” didn’t look anything like the dollars and cents we use today. Instead, their economy was largely barter-based, supplemented by items of intrinsic or symbolic value. Common forms of “money” included:
1. Wampum
Wampum—beads crafted from shells—served as a medium of exchange, a record of agreements, and a symbol of status. The beads were meticulously crafted and strung together, making them labor-intensive and valuable. Over time, wampum even gained widespread use as a form of currency among both Native Americans and European settlers.
2. Trade Goods
Items such as animal pelts, food, tools, and weapons functioned as money because they held practical value. A beaver pelt, for example, was not only a trade item but also a highly desired commodity for making warm clothing.
3. Social Reciprocity
Beyond physical items, the Native American economy relied heavily on reciprocity—a system where goods and services were exchanged based on mutual need and social bonds. While not “money” in the traditional sense, this system fostered trust and community cohesion.
The Pilgrim Perspective: An Economy in Flux
The Pilgrims brought their own ideas about money, rooted in European traditions. At the time, gold and silver coins were the primary forms of currency, but these were scarce in the New World. Instead, Pilgrims often relied on:
- Barter: Trading goods like tools, clothing, and livestock.
- Commodity Money: Items such as tobacco, which held value and could be traded.
- Credit Systems: Trust-based exchanges where debts were recorded and settled later.
Thanksgiving and the Role of Money in Trade
The First Thanksgiving wasn’t just a feast; it was the culmination of an alliance between the Wampanoag tribe and the Pilgrims. This partnership involved more than food; it included trade and cooperation. The Pilgrims needed the Wampanoags’ knowledge of farming and the land, while the Wampanoags valued European goods like metal tools and firearms.
In these exchanges, both sides relied on a mix of barter, wampum, and commodity items as their “money.” This system highlights an essential truth about money: it’s a tool we create to facilitate exchange.
Lessons from Thanksgiving: What Is Money to You?
As we reflect on this historical moment, here are some timeless lessons about money:
- Money Evolves: Whether it’s wampum, beaver pelts, or cryptocurrency, the form of money changes to meet the needs of the time.
- Value Is Perception: Money is only as valuable as the trust people place in it. Wampum had value because it was widely accepted within Native American and settler communities, just as a $20 bill is today.
- Barter Still Exists: Even in modern times, barter and trade systems thrive in some communities, proving that money doesn’t always have to be cash.
- Money Is About Relationships: For Native Americans, reciprocity wasn’t just an economic practice; it was a way of building and sustaining relationships. Similarly, how we use and share money reflects our values and priorities.
A Modern Thanksgiving Thought
As you gather this Thanksgiving, take a moment to reflect on how money shapes your life. Is it a source of stress or a tool for achieving your goals? Are you using it to build relationships or to isolate yourself?
Understanding money starts with recognizing its role as a human invention—a tool that has been evolving since the days of wampum and beaver pelts. And just like the Pilgrims and Native Americans who exchanged goods and ideas, we can use money to create partnerships, share resources, and improve our collective future.
This Thanksgiving, let’s be grateful not just for what we have but for the systems that allow us to share, trade, and thrive together.