The first coins were made around 700 B.C. by the Lydians, a group of traders who lived in what is now Western Turkey. The use of coins quickly spread to civilizations in Greece and Rome. The first paper money was made in China around 800 A.D. Paper money can either be "representative" or "fiat." Representative money is money that can be traded for an equal amount of either gold or silver. An example of representative money is a Silver Certificate. Fiat money is the type of money that we use every day. It cannot be traded for gold or silver. It is valuable because it is backed by the government, and people trust its worth.