Money constantly moves in a cycle from consumer to business to employee. Every time you send or receive money, you take part in that cycle. Money can move an impressive distance as these transactions happen. On average, a dollar bill moves two miles per day and changes hands 55 times per year. And that’s just printed for currency — digital transactions help move money even farther and much more quickly.
The lifespan of a $1 bill is less than six years, so new money is constantly printed to replace old. As a matter of fact, 90 percent of all new money merely replaces currency already in existence. Moreover, new money is getting more advanced, including measures to prevent counterfeiting.
U.S. dollar bills are printed in Washington, D.C., and Fort Worth, TX, by the Bureau of Engraving and Printing, and U.S. coins are minted in Philadelphia, San Francisco, and Denver. Then the money travels across the United States to Federal Reserve Banks, where many smaller banks have accounts allowing them to pay for cash withdrawals.
Most people no longer carry much money on their person, preferring to use credit and debit cards in digital transactions, but new money will still need to be made until the economy becomes entirely digital — something coming ever closer to reality as more and more people learn how to send money online.
Discover where your money goes in this infographic depicting the many paths of currency.
Dividend Diplomats says
Nice diagram – I think for individuals who do not know the transactions of money/currency can get a huge benefit from your simplified chart. Thanks for sharing!
The Millennial Budget says
Interesting article that most people do not think about. Having worked in the banking sector it is very interesting to see how money flows through the economy. You make a good point about the digital age and how it has affected transactions. I was really surprised to see how much longer the $100 bill survives than other bills. Any reason why?