American money

The American money system is logical and very easy to use. It is based on the dollar ($1.00), on which all cash and coins are dependent. There are 100 cents in a dollar. Coins are fractions of a dollar, for example: a quarter ($0.25) is 1/4 of a dollar, a dime ($0.10) is 1/10th of a dollar, and so forth. Paper bills are multiples of a dollar: for example, a $5 bill.

US paper currency
The twenty, ten, five, and one are the most frequently used bills.



When speaking about money, $1 is referred to as "a one", "a dollar", "a dollar bill", or "a buck"; $5 is "a five", "five dollars", "a five dollar bill", or "five bucks"; etc. Another way to refer to money is to call it "cash."

The five, ten, twenty, fifty and hundred dollar bills have been recently redesigned to incorporate new security features. Both the new and old versions are in circulation. The one is not being redesigned as it is not considered as likely to be counterfeited. Also in use but not as frequently seen are the $2, $50 and $100 denominations. The two dollar bill is rare - people seem to collect, rather than spend, them. $50 and $100 bills are not as commonly used and many places may not accept them for small purchases. You probably won't ever see any larger-value denominations such as $500, $1,000, $5,000, and $10,000. People not familiar with these bills should probably not accept them, because counterfeit, or fake, currency does exist, especially in the higher and more unfamiliar denominations. For pictures of the new and old American paper currency, visit the Bureau of Engraving and Printing.

Shop clerks sometimes consider the use of very large bills to pay for very small purchases to be an annoyance. For example, try not to use a $20 to pay for a 35¢ pack of gum! It would be better to pay with a smaller bill or some coins. If you don't have anything smaller, it is polite to say so to the clerk.

The Canadian currency system is similar to the American. Canadian paper money typically needs to be converted into American before use in the United States. For more about Canadian money, including pictures of the new bank notes, see the Bank of Canada website.

US coins
The most commonly used coins are the quarter, dime, nickel, and penny.



Each type of coin has a unique size and design, usually with the image of a president or other famous American person on the front. Quarters have been made with varying images on their back sides, honoring the 200th anniversary of the USA, and honoring each state. Coins that are not used as often include the Susan B. Anthony dollar coin, and the Kennedy half-dollar, also known as the 50-cent piece.

Canadian coins are seen in the northern United States and are also available in quarters, dimes, nickels, and pennies. However, not all stores and restaurants accept them; typically, the closer you are to Canada, the more accepted they are. Canadian coins may be accepted as equal in value to US coins, but the exchange rate usually places a higher value on the US versions, so be careful not to accept too many.

Practical use
The quarter is one of the most useful coins. If you are a student, be sure to save these! They can be used in almost any coin-operated machine: clothes washers & dryers, arcade games, pay phones, and vending machines dispensing food, drinks, stamps, tickets, newspapers, etc. Dimes and nickels can usually be used in pay phones and vending machines. Many vending machines will take small bills, such as ones, fives, and tens, but the change you get back will all be in coins. Often there will be a dollar changer near coin-operated machines which dispenses quarters in exchange for small bills. One word of caution: vending machines do not take dollar coins, half-dollars, pennies, or Canadian coins.

Credit or charge cards are being used more and more, even for buying small items. Many Americans don't like to carry much cash, and the cards are convenient and safe to use. They are accepted almost everywhere, but not at fast food restaurants! Traveler's checks are a good idea for visitors also. You won't have to carry large amounts of cash with you, and the checks can be replaced if they get lost or stolen.


In a related article, we discuss automatic teller machines, or ATMs. These machine are a popular and convenient way to access cash.

Visit our ESL Corner to learn about "making change"!

By Susan Ernenwein and Alice Hoover