If you've heard that the average dollar bill only survives about 18 months of use, you're remembering outdated information. While this was true several decades ago, modern American currency tells a very different story.

According to the Federal Reserve's most recent data from May 2025, the average $1 bill now circulates for approximately 6.6 years—more than four times longer than the old 18-month figure. That's right: your crumpled George Washington could be making the rounds for over half a decade.

Why Dollar Bills Used to Die Young

In the past, paper currency had a notoriously short lifespan. The combination of lower-quality paper, less sophisticated printing techniques, and the sheer volume of transactions meant that bills wore out quickly. Dollar bills, being the most frequently used denomination, took the hardest beating.

Every fold, every trip through a cash register, every moment spent wadded up in someone's pocket contributed to deterioration. The 18-month average reflected this harsh reality of constant circulation.

The Currency Lifespan Hierarchy

Not all bills are created equal when it comes to longevity. Here's how different denominations stack up today:

$1 bills: 6.6 years
$5 bills: 4.7-5.5 years
$10 bills: 4.5-5.5 years
$20 bills: 7.8 years
$50 bills: 12.2 years
$100 bills: 22.9 years

Notice something interesting? The smallest denominations don't last the longest. The $5 and $10 bills actually have shorter lifespans than singles because they change hands even more frequently in everyday transactions.

Why Benjamins Live Forever (Relatively Speaking)

That $100 bill lasting nearly 23 years isn't a typo. Larger denominations enjoy extended lifespans because they're used differently. While you might use a $1 bill to buy coffee, that $100 bill is more likely to be withdrawn from an ATM, stored in a wallet, and used for bigger purchases—or simply saved.

Less circulation equals less wear and tear. These bills spend more time resting in wallets and safes than being crumpled, folded, and stuffed into vending machines.

What Changed?

So how did we go from 18 months to 6.6 years for dollar bills? The Federal Reserve didn't just sit around hoping money would last longer. Several key improvements made the difference:

Modern currency uses a special blend of 75% cotton and 25% linen, creating a more durable substrate than traditional paper. Advanced printing techniques and security features are now embedded in ways that don't compromise durability. The Bureau of Engraving and Printing continuously refines the manufacturing process to create bills that can withstand the rigors of daily use.

Even the way we handle money has evolved. More electronic payments mean physical bills circulate somewhat less intensively than in previous decades, though they still see plenty of action.

When Bills Go to Die

Eventually, even the toughest currency succumbs to wear. When Federal Reserve Banks receive worn, torn, or damaged bills from commercial banks, they remove them from circulation and destroy them. The shredded remains are typically recycled or sometimes repurposed—some companies even turn old currency into notebooks, building materials, or compost.

Fresh bills are printed continuously to replace the casualties, maintaining a steady supply of crisp currency flowing through the economy. The Federal Reserve estimates that at any given time, there are billions of dollars in bills being evaluated, destroyed, and replaced.

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