Sounds Crazy right? This question was asked of me this morning by my newly aged 9 yr old. The conversation went something like this: Daddy, is money made of paper? Yes buddy, why? Well I don't understand. What do you mean? Well.......is there gold inside the money? No buddy......as I laugh and chuckle to my self If money is just paper - Then how is the money worth anything Daddy? Not sure how to answer your question Cole, why don't you ask your teacher today when we get to school? Ok - Daddy I will. Her response ought to be interesting............ I know a good bit about how the monetary system works. How would you answer my 9 yr olds question? For the record this truely happened this morning and Cole had a very puzzled look on his face when I told him their was no gold inside the money.