Money is more than just paper and coins. It has a fascinating history. From the reason behind using green ink to the legacy of In God We Trust, the financial world is full of surprises. Let’s dive into the facts about money that might change how you see your wallet.
Paper Money Is Not Made Out of Paper
Despite the name, U.S. bills aren’t paper. They are 75% cotton and 25% linen, making them stronger than regular paper. The Bureau of Engraving & Printing has handled currency production since 1862, but the special material used comes from Crane Currency in Massachusetts, the sole supplier since 1879. It’s even illegal for anyone else to possess this unique paper.
The U.S. once made a $100,000 bill
The largest U.S. bill ever printed was the $100,000 gold certificate featuring Woodrow Wilson, issued in 1934. It was used only for transactions between Federal Reserve Banks and the U.S. Treasury; never for public circulation. High-denomination notes like this played a key role in large-scale financial operations but are now a relic of a different era in American money history.
The Costly Penny
Producing a penny costs 3.69 cents in 2024, nearly four times its actual value. In 2022, the U.S. lost $110 million just making them. Pennies are made primarily of zinc with a thin coating of copper, but rising costs of these metals, along with inflation and shortages, have driven up production expenses.
U.S. Bills Last Up to 22.9 Years
The lifespan of U.S. bills depends on their denomination and usage. The $5 bill has the shortest lifespan at 4.7 years, while the $100 bill lasts the longest, averaging 22.9 years. Smaller denominations like $1, $5, and $10 bills wear out faster due to frequent transactions, while larger bills like $50 and $100 are often stored rather than spent, giving them a longer life.
The Iconic Greenback
U.S. currency has been green for practical reasons rather than design preference. In the 19th century, green ink was chosen because it was plentiful, durable, and difficult to counterfeit, especially when early cameras could only capture black-and-white images.
By 1929, the government standardized bill designs and kept green as the primary color since it symbolized stability and growth. Over time, the iconic “greenback” became a staple of American money.
Why Coins Have Ridges
Coins have ridges to prevent fraud. In earlier times, when coins were made of gold and silver, people shaved small amounts off the edges to collect and sell the metal. The U.S. Mint began adding ridges in the 18th century to stop this. While modern coins aren’t made of precious metals, the tradition of ridged edges continues.
The Uncommon $2 Bill
The $2 bill is often considered rare, but it’s more uncommon than truly scarce. With about 1.7 billion in circulation, it’s far less common than the $1 bill, but still produced occasionally—over 100 million were printed in 2022. Despite its lower usage, most $2 bills hold no extra value, as people tend to save rather than spend them.
Most Money Doesn’t Exist Physically
Only 8% of global currency exists as physical cash, while 92% is digital. This shift reflects how money has evolved with technology, financial systems, and the internet.
From physical currency to digital transactions, the evolution of how people store and exchange money continues to reshape financial interactions in our increasingly connected world.
The Legacy of “In God We Trust”
The phrase “In God We Trust” first appeared on U.S. coins in 1864, gradually becoming a standard feature. In 1956, it was officially adopted as the national motto, replacing “E Pluribus Unum,” and was added to paper bills in 1957.
Inspired by The Star-Spangled Banner, the motto gained significance during the Cold War, emphasizing American values. It remains a prominent symbol on coins and bills across the United States.
Only 2 Non-Presidents appear on U.S. currency
Among U.S. paper currency, only two figures—Alexander Hamilton ($10) and Benjamin Franklin ($100)—never served as president. Every other denomination features a former president, including George Washington ($1), Thomas Jefferson ($2), Abraham Lincoln ($5), Andrew Jackson ($20), and Ulysses Grant ($50). While other historical figures have appeared on past currency, none remain in circulation today.
No Living Person on U.S. Currency
Since 1866, U.S. law has prohibited living individuals from appearing on currency. This rule was prompted by a printing mishap when National Currency Bureau Superintendent Spencer M. Clark mistakenly placed his own face on a five-cent note instead of William Clark of Lewis & Clark.
Congress passed legislation to prevent similar incidents, ensuring only historical figures would be featured on U.S. bills and coins.
America Once Had 8,000 Currencies
Before the Civil War, private banks issued paper money, resulting in an unwieldy system with nearly 8,000 different types of currency. These banknotes, backed by gold and silver, varied across jurisdictions, complicating trade and fueling counterfeiting.
The National Banking Act standardized U.S. currency, introducing a single national system and helping finance the Civil War, while the Federal Reserve later solidified the unified monetary structure.
Damaged Currency Also Holds Value
Damaged or torn U.S. currency can still hold full face value if enough of the bill remains. The Bureau of Printing and Engraving evaluates mutilated notes and reimburses their full worth if at least 51% is intact. The process can take 6 to 36 months, but it ensures lost or damaged money can be recovered instead of discarded.
Foreign Coins Once Circulated in the U.S.
Before the mid-1800s, the U.S. struggled with a shortage of precious metals for minting coins. A 1793 law allowed Spanish dollars and other foreign coins to circulate as legal tender. This practice continued until 1857, when foreign currency was officially banned from the American monetary system.
The $ Sign Has Spanish Origins
The dollar sign may have originated from the Spanish peso, commonly used in colonial America. The peso, known as “peso de ocho reales” or “pieces of eight,” was abbreviated as “PS,” which may have evolved into the $ symbol. Another theory suggests the U.S. initials were superimposed, with the lower part of the U was removed to create a shape similar to the modern dollar sign.
