You may have never thought much about the color of United States currency. It wasn’t until I traveled abroad as a young adult that I overheard someone comment about how unattractive American money was. Their reasoning was because it wasn’t as colorful or artistic as other countries currency. I was immediately offended. How dare they say something negative about our beloved US dollar? 

To understand why US money is green, we need to delve into history. In the mid-19th century, the United States faced the challenge of financing the American Civil War. As a solution, the federal government began issuing paper money for the first time since the Revolutionary War. These new bills, known as “greenbacks,” featured green ink on their back sides¹. 

The choice of green ink was deliberate. At the time, photography was limited to black and white, making it difficult to reproduce intricate details in color. By using green ink, the government aimed to prevent counterfeiters from creating convincing copies of the bills. The distinctive color served as an anti-counterfeiting measure, ensuring that genuine currency could be easily distinguished from fakes. 

As the U.S. currency system evolved, green ink remained a constant feature. In 1929, the government standardized the size and design of paper money, making it easier for people to recognize real bills. The decision to continue using green ink was practical: it was readily available, durable, and associated with stability. You will notice that the shades of green currently used are subtle and a bit muddy. You don’t see neon green, or chartreuse. The green you see looks old, stable, even a bit dull. Over time, the green color became synonymous with the strong credit of the U.S. government². 

If you have held a new United States $100 bill lately, you may have been struck by how attractive it is. In fact, you could say that Benjamin Franklin looks pretty sharp for a man who was 84 years old in the late 1700s. Whoever did the design work behind the updated currency deserves some kudos, because it has some complicated design work, attractive colors, and even some gold and bronze glitter. In fact, while I’m not seeing the glitter on the current $1s and $5s, it is now part of the design on $10s, $20s, and $50s as well. 

Although it has nothing to do with color, you may notice that when you watch older movies and TV shows, you may hear references to denominations that don’t exist anymore. For example, on an old Perry Mason TV show that I recently watched (from 1959), the famed attorney was paid his fee with a $10,000 bill. I was curious about this, so of course I looked it up—and at that time, there were $10,000 bills in circulation. According to Wikipedia, large denominations of US currency were circulated until 1969. This practice was stopped because our government didn’t want it to be used for illegal activities. I’m sure the most concerning illegal activity would be tax evasion. With the prevalence and ease of electronic money systems (along with required IRS tax reporting), large denominations are not expected to emerge again anytime soon. 

While other countries use different colors for their money and some be more visually attractive, the greenback remains an iconic representation of American wealth and stability. So, the next time you handle a dollar bill, remember that its color tells a fascinating story—one that spans centuries and reflects the ingenuity and endurance of our financial system. 

Footnotes and reference sources– Source: Conversation with Copilot, 5/22/2024

1. Why is American currency green? – HISTORY
   https://www.history.com/news/8-things-you-may-not-know-about-american-money
2. The Psychology Of Color (And Why Money Is Green) – Urbo 
   https://www.urbo.com/content/the-psychology-of-color-and-why-money-is-green
3. Google—”Why Is Money Green in the United States?”
4. Curious Kids: Why Is Money Green? | The National Interest
   https://nationalinterest.org/blog/buzz/curious-kids-why-money-green-82831
5. Features of the $100s and other currency:
   https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/multinote-booklet-en.pdf

Kristina Bolhouse, CPA/PFS, CFP®

Vice President/Shareholder

© 2024 Kristina Bolhouse and The Arkansas Financial Group, Inc., All rights reserved.

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