Updated February 2020.
Can you separate cash facts from common myths? See how much you really know about cash with this updated and expanded quiz.
1. There are more $1 notes in circulation than any other denomination.
Demand for U.S. currency has grown steadily since the 1980s.
In February 2017, the number of $100 notes in circulation exceeded the number of $1 notes for the first time. At the end of 2019, there were 14.3 billion $100 notes and 12.7 billion $1 notes in circulation.
Demand for U.S. currency has grown steadily since the 1980s.
In February 2017, the number of $100 notes in circulation exceeded the number of $1 notes for the first time. At the end of 2019, there were 14.3 billion $100 notes and 12.7 billion $1 notes in circulation.
2. The $1 note has the shortest lifespan.
The $5 note has the shortest lifespan.
While the $1 note is the second most used denomination after the $100
note, it does not have the shortest lifespan. The $5 note’s
lifespan
is only 4.7 years, followed by the $10 note at 5.3 years, and $1 note at
6.6 years.
The $5 note has the shortest lifespan.
While the $1 note is the second most used denomination after the $100
note, it does not have the shortest lifespan. The $5 note’s
lifespan
is only 4.7 years, followed by the $10 note at 5.3 years, and $1 note at
6.6 years.
3. There is more U.S. currency (in value) abroad than in the United
States.
As of February 2020, more than half of the $1.76 trillion of U.S. banknotes in circulation is held overseas.
For many years, the demand for U.S. banknotes from foreign markets has
been the primary driver of the steady increase in the total value of
U.S. banknotes in circulation.
As of February 2020, more than half of the $1.76 trillion of U.S. banknotes in circulation is held overseas.
For many years, the demand for U.S. banknotes from foreign markets has
been the primary driver of the steady increase in the total value of
U.S. banknotes in circulation.
4. Consumers use cash more frequently than any other payment instrument.
Consumers use debit cards most frequently.
According to the
Diary of Consumer Payment Choice, debit cards were the most frequently used payment instrument in 2018,
overtaking cash for the first time since the first Diary in 2012. In
2018, cash came in second, accounting for approximately 26 percent of
all payments, and about 35 percent of in-person payments.
Consumers use debit cards most frequently.
According to the
Diary of Consumer Payment Choice, debit cards were the most frequently used payment instrument in 2018,
overtaking cash for the first time since the first Diary in 2012. In
2018, cash came in second, accounting for approximately 26 percent of
all payments, and about 35 percent of in-person payments.
5. Consumers use debit cards for most small-value purchases.
In the small-value purchase category, cash is still king.
The average consumer uses cash for about half of purchases under $10. As
the purchase amount increases to between $10 and $25, cash and debit
cards are used about equally at 33 and 32 percent respectively.
In the small-value purchase category, cash is still king.
The average consumer uses cash for about half of purchases under $10. As
the purchase amount increases to between $10 and $25, cash and debit
cards are used about equally at 33 and 32 percent respectively.
6. Demand for U.S. currency is growing.
Demand for U.S. currency has grown steadily since the 1980s.
Although the transactional usage of cash fluctuates with the business cycle, the amount and value of U.S. currency in circulation has grown steadily for decades. As of December 2019, U.S. currency in circulation reached 45 billion notes valued at $1.76 trillion. Since 2011, the value of currency in circulation has grown an average 7 percent per year.
Demand for U.S. currency has grown steadily since the 1980s.
Although the transactional usage of cash fluctuates with the business cycle, the amount and value of U.S. currency in circulation has grown steadily for decades. As of December 2019, U.S. currency in circulation reached 45 billion notes valued at $1.76 trillion. Since 2011, the value of currency in circulation has grown an average 7 percent per year.
7. Young people use cash more than any other payment instrument.
Young people use cash the most.
According to the Diary, the share of cash use among individuals under 25
years old is the highest of any age group. Individuals aged 18 to 25
have the highest share of cash use, 34 percent, followed by those 65 and
older who report using cash for 33 percent of payments.
Young people use cash the most.
According to the Diary, the share of cash use among individuals under 25
years old is the highest of any age group. Individuals aged 18 to 25
have the highest share of cash use, 34 percent, followed by those 65 and
older who report using cash for 33 percent of payments.
8. Most people carry cash.
According to our research, 80 percent of Americans carry some cash on
a regular basis.
People carry cash for a number of reasons. In addition to making
purchases, some people carry cash in case of emergencies or if
electronic payment options are not accepted.
According to our research, 80 percent of Americans carry some cash on
a regular basis.
People carry cash for a number of reasons. In addition to making
purchases, some people carry cash in case of emergencies or if
electronic payment options are not accepted.
9. The average consumer carries less than $10 in cash.
On average, consumers hold about $60 in cash.
Consumers hold about five notes, and one in 10 people holds a $100 note.
On average, consumers hold about $60 in cash.
Consumers hold about five notes, and one in 10 people holds a $100 note.
10. Most shopping takes place in stores, not online.
In-person payments in 2018 accounted for 73 percent of all
transactions.
This includes retail stores, vending machines, and gas stations. For
these in-person payments, cash is still the most popular way to pay at
35 percent, followed by debit and credit cards at 30 and 25 percent,
respectively. The use of credit cards for in-person purchases increased
from 20 percent in 2016 to 25 percent in 2018.
In-person payments in 2018 accounted for 73 percent of all
transactions.
This includes retail stores, vending machines, and gas stations. For
these in-person payments, cash is still the most popular way to pay at
35 percent, followed by debit and credit cards at 30 and 25 percent,
respectively. The use of credit cards for in-person purchases increased
from 20 percent in 2016 to 25 percent in 2018.
11. Mobile spending is increasing.
Mobile spending is on the rise.
The percentage of mobile spending has jumped nearly three percentage
points since 2016, now sitting at 8.2 percent of total transactions.
Mobile spending is on the rise.
The percentage of mobile spending has jumped nearly three percentage
points since 2016, now sitting at 8.2 percent of total transactions.
12. Household location affects cash usage.
Household location affects credit usage, not cash.
The average number of monthly credit payments is at six (out of 38 total
payments) in rural areas, compared to 12 (out of 45 total payments) in
urban areas, as higher-income households (often in urban areas) use
credit at a higher rate.
Household location affects credit usage, not cash.
The average number of monthly credit payments is at six (out of 38 total
payments) in rural areas, compared to 12 (out of 45 total payments) in
urban areas, as higher-income households (often in urban areas) use
credit at a higher rate.
13. Cash usage is on a constant decline.
Transactional cash usage by consumers fluctuates with the business
cycle.
We have seen downward and upward trends of cash usage in the past.
However, it is important to understand that demand for cash, measured by
currency in circulation, is on the constant rise.
Transactional cash usage by consumers fluctuates with the business
cycle.
We have seen downward and upward trends of cash usage in the past.
However, it is important to understand that demand for cash, measured by
currency in circulation, is on the constant rise.
14. It’s illegal for a business in the U.S. to refuse cash as a form of
payment.
The federal government does not require retailers to accept cash as a
form of payment.
In recent years, some businesses began eliminating cash, but because that excludes the unbanked and underbanked population, some cities and states have passed legislation that requires all retailers to accept cash as a form of payment.
The federal government does not require retailers to accept cash as a
form of payment.
In recent years, some businesses began eliminating cash, but because that excludes the unbanked and underbanked population, some cities and states have passed legislation that requires all retailers to accept cash as a form of payment.