The life of money is an interesting and intricate cycle. Currency, whether electronic or physical, is constantly moving throughout our economy, our bank accounts, and our wallets. Everyone participates in this cycle by spending money. Learning about the life cycle of a dollar bill or the 12 Federal Reserve banks in the United States provides an inside look at how currency works.
From the time the Bureau of Engraving and Printing (BEP) prints a dollar bill, it remains in circulation for an average of only six years. During that time, however, dollar bills go on a long journey, so it’s no wonder they need to be replaced so often. Despite the billions of Federal Reserve notes in our economy today, digital transactions are extremely prevalent, and most people are more used to swiping plastic than they are to spending physical money. Indeed, although the BEP delivered 6.6 billion paper bills in 2014, many monetary transactions took place electronically, never using physical money from the Federal Reserve.
However, even if you’re using virtual instead of tangible money, you’re still helping money circulate through the national and global economy. Visualizing the life cycle of a virtual dollar might be more difficult, but these digital transactions allow people to spend money in faraway places, to send money online via International Money Transfer, and to keep track of their finances in real time. Learn more about the life cycle of paper money and virtual transactions by checking out this infographic on how money moves!
