describe the term paper money

The Invention of Paper Money

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Paper money is an invention of the Song Dynasty in China in the 11th century CE, nearly 20 centuries after the earliest known use of metal coins. While paper money was certainly easier to carry in large amounts, using paper money had its risks: counterfeiting and inflation.

Earliest Money

The earliest known form of money is also from China, a cast copper coin from the 11th century BCE, which was found in a Shang Dynasty tomb in China. Metal coins, whether made from copper, silver, gold, or other metals, have been used across the globe as units of trade and value. They have advantages—they are durable, difficult to counterfeit, and they hold intrinsic value. The big disadvantage? If you have very many of them, they get heavy.

For a couple thousand years after the coins were buried in that Shang tomb, however, merchants, traders, and customers in China had to put up with carrying coins, or with bartering goods for other goods directly. Copper coins were designed with square holes in the middle so that they could be carried on a string. For large transactions, traders calculated the price as the number of coin strings. It was workable, but an unwieldy system at best.

Paper Money Takes the Load Off

During the Tang Dynasty (618–907 CE), however, merchants began to leave those heavy strings of coins with a trustworthy agent, who would record how much money the merchant had on deposit on a piece of paper. The paper, a sort of promissory note, could then be traded for goods, and the seller could go to the agent and redeem the note for the strings of coins. With trade renewed along the Silk Road, this simplified cartage considerably. These privately-produced promissory notes were still not true paper currency, however.

At the beginning of the Song Dynasty (960–1279 CE), the government licensed specific deposit shops where people could leave their coins and receive notes. In the 1100s, Song authorities decided to take direct control of this system, issuing the world's first proper, government-produced paper money. This money was called jiaozi . 

Jiaozi under the Song

The Song established factories to print paper money with woodblocks, using six colors of ink. The factories were located in Chengdu, Hangzhou, Huizhou, and Anqi, and each used different fiber mixes in their paper to discourage counterfeiting. Early notes expired after three years, and could only be used in particular regions of the Song Empire.

In 1265, the Song government introduced a truly national currency, printed to a single standard, usable across the empire, and backed by silver or gold. It was available in denominations between one and one hundred strings of coins. This currency lasted only nine years, however, because the Song Dynasty tottered, falling to the Mongols in 1279.

Mongol Influence

The Mongol Yuan Dynasty , founded by Kublai Khan (1215–1294), issued its own form of paper currency called chao; the Mongols brought it to Persia where it was called djaou  or djaw . The Mongols also showed it to Marco Polo (1254–1324) during his 17-year-long stay in Kublai Khan's court, where he was amazed by the idea of government-backed currency. However, the paper money was not backed by gold or silver. The short-lived Yuan Dynasty printed increasing amounts of the currency, leading to runaway inflation. This problem was unresolved when the dynasty collapsed in 1368.

Although the succeeding Ming Dynasty (1368–1644) also began by printing unbacked paper money, it suspended the program in 1450. For much of the Ming era, silver was the currency of choice, including tons of Mexican and Peruvian ingots brought to China by Spanish traders. Only in the last two, desperate years of Ming rule did the government print paper money, as it attempted to fend off the rebel Li Zicheng and his army. China did not print paper money again until the 1890s when the Qing Dynasty began producing yuan .

• Lande, Lawrence, and T. I. M. Congdon. " John Law and the Invention of Paper Money. " RSA Journal 139.5414 (1991): 916–28. Print.
• Lui, Francis T. " Cagan's Hypothesis and the First Nationwide Inflation of Paper Money in World History. " Journal of Political Economy 91.6 (1983): 1067–74. Print.
• Pickering, John. " The History of Paper Money in China ." Journal of the American Oriental Society 1.2 (1844): 136–42. Print.
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paper money

• currency in paper form, such as government and bank notes, as distinguished from metal currency.
• paper currency issued by the government or the central bank as legal tender and which circulates as a substitute for specie

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Word history and origins.

Origin of paper money 1

Example Sentences

Central banks like the US Federal Reserve are printing more paper money than ever.

As society accelerates into its digital future, the UK is taking steps to protect the centuries-old technology known as paper money.

She recounts that, as a currency, cowries “have circulated longer than any other single coin or paper money in history.”

With fewer people carrying paper money, and with some places no longer accepting it, we’ve become ever more reliant on electronic cash provided by commercial institutions, from PayPal to Visa.

Last year’s economics prize notably went to a team that tested to see which country’s paper money transmitted the most harmful bacteria.

Just a gradual, bearable, steady impoverishment in a world where savings linked to the value of paper money languish.

If so, why do the rest of us have to put up with legal-tender paper money?

Also, coins did not conveniently slide into the “vault” (Bunny-speak for bodice) the way paper money did.

The Treasury Department could sell the licensing rights to all our paper money.

At present this medium is paper money depreciated, as in the case of the Reichsbank notes, by nearly 30 per cent.

The issue of government paper money is, indeed, a new departure; but its purpose has been more distinctly monetary than fiscal.

The day of reckoning, Mr. Mac Quedy, is the point which your paper-money science always leaves out of view.

Coins should be boiled, and paper money should be dipped in the 10 per centum carbolic acid solution and dried at a stove.

I found many people who were going without their next meal because they could not get their paper money changed.

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Meaning of paper money in English

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• anti-kickback
• automatic withdrawal
• meal ticket
• monetization
• monometallic
• Monopoly money
• wave and pay
• That meant the paper money was worth a certain amount of gold.  
• Under the gold standard, you could go to a bank, give them your paper money, and ask for gold.  
• When paper money was invented, it was often with a gold standard.  

paper money | Business English

Examples of paper money, translations of paper money.

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How Is Paper Money Made?

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Paper money in the United States has taken on many different styles and forms since it was first created in 1690. Today, some countries print their "paper" money on polymer plastic substrates.

The production of paper money involves four basic components:

• Paper, to print the money on
• Ink, to impart the designs on the paper
• Plates, to put the ink onto the paper
• Printing, the process that brings together the paper, ink, and design plates to print U.S. paper money

The paper that the United States Bureau of Engraving and Printing uses to print money is specially created by Crane and Co., a Massachusetts-based company that has provided the U.S. Bureau of Engraving and Printing with paper for U.S. currency since 1879. And actually, it isn't paper at all. Paper is made from wood fibers that are processed into thin sheets. Federal Reserve notes are a blend of 25 percent linen (fibers from the flax plant) and 75 percent cotton. 

Each sheet also contains special anti-counterfeiting measures. If you look closely at any United States dollar bill, you will see a combination of blue and red fibers throughout the paper. These are placed randomly during the production process and make it more difficult for counterfeiters to produce this special paper. Additionally, a mylar ribbon is encased inside each piece of paper. This ribbon will glow under ultraviolet light and has the value of the note printed on it. The new $100 notes have a wider mylar hologram ribbon that weaves in and out of the top surface of the bill.

The ink that is used to print our paper currency in the United States has been specially formulated by the United States Treasury. The secret formula used to produce the ink is also another form of anti-counterfeiting measures used in the production of United States paper currency. The back of each bill usually uses special green ink and is printed first. The front of the bill uses a variety of ink that depends upon the denomination of the bill being produced. This can include black ink, color-shifting ink, and metallic ink.

Engravers at the United States Bureau of Engraving and Printing are the highly skilled artists that engrave a web of fine lines and grooves into a steel plate by hand. They use sharp tools, commonly called gravers and acids, to cut the fine lines, dots, and dashes uniquely inscribed into each plate. A graver is a hand-sized, hardened steel tool shaped to a sharp point. Gravers come in different sizes and shapes; the point can be wide or slim, flat or pointed, depending upon which type of cut the engraver wishes to produce. 

The engraver works in a mirror image, so everything on the master plate is backward. Therefore, when it is used to produce paper money, it will be printed correctly. Throughout this whole process, computers are not used in the creation of these plates.

Also, each master plate is created by many different artists. Some engravers specialize in creating portraits; others specialize in creating design elements such as buildings or scenes that are called vignettes, while other engravers specialize in lettering and scrollwork.

This master plate is then used to create a printing plate with thirty-two notes on one plate. This is the plate that will be mounted onto the intaglio printing press used to create the images on the paper's surface.

The actual printing process used by the U.S. Bureau of Engraving and Printing consists of several steps. There are many anti-counterfeiting measures contained on each note produced. This includes colorful backgrounds, color-shifting ink, and the intaglio printing process.

Offset Printing

In 2003, the United States began using subtle background colors in an effort to thwart counterfeiters. The twenty-dollar bill was the first bill to be redesigned in many years. Photo engravers receive the master design from the offset plates' designers and load them into a printing press. A thin sheet of steel coated with a light-sensitive polymer is exposed to ultraviolet light to transfer the image to the plate.

These colorful images can be as simple as a geometric design or as complicated as a subtle portrait or calligraphy in the background. Given the complexity and graduated differences in color, this background printing is another step in adding additional security measures to our currency.

Intaglio Printing

The next step involves printing the major design elements on the note. The intaglio process consists of mounting the engraved plates on the printing press. The printing plate is then covered with a thin coat of ink, and a wiper removes the excess ink from the surface of the plate. Only the recessed areas of the plate will contain the ink. The printing press uses 20,000 pounds of pressure per square inch to transfer the design to the paper. This forces the ink that is in the recessed grooves of the printing plate onto the paper. 

The goal of the Bureau of Engraving and Printing is to produce flawless and perfect paper money every time. To ensure the quality of this process, the sheets of notes are put through inspection. A human can't inspect each and every note of the millions of notes that are produced. Therefore, they passed through a machine that uses sophisticated software to analyze each sheet. This sophisticated inspection process can inspect 8,000 sheets per hour.

Overprinting

This is the final stage of the printing process. At this point, the thirty-two note sheets have been cut in half and have sixteen notes per sheet. Each note receives a serial number for quality control and tracking, the universal black Federal Reserve seal, the green Department of the Treasury seal, and the corresponding Federal Reserve identification numbers.

The average lifespan of a piece of paper currency in the United States depends upon its denomination.

• One dollar bill: 6.6 years
• Five dollar bill: 4.7 years
• Ten dollar bill: 5.3 years
• Twenty dollar bill: 7.7 years

Stacking, Cutting, and Packaging

The back of the bill is printed first. It then takes seventy-two hours for the ink to dry and cure on the surface of the paper. After the back of the note is dried, it is fed through the press again to print the front of the note. Once again, they sit for seventy-two hours for the ink to dry and cure.

Finally, the currency sheets that contain sixteen notes (two across and eight down) are gathered into stacks of 100. Each stack passes through a guillotine cutter. The first cut is made horizontally, leaving the notes in pairs. The second cut is made vertically, and we now have individual notes. 

The notes are then strapped, bundled, and bricked for distribution to the Federal Reserve Bank.

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What Is Currency?

Understanding currency, money vs. currency, currency trading.

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Currency: What It Is, How It Works, and How It Relates to Money

Investopedia / Julie Bang

Currency is a medium of exchange for goods and services. In short, it's money, in the form of paper and coins, usually issued by a government and generally accepted at its face value as a method of payment.

Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.

In the 21st century, a new form of currency has entered the vocabulary and realm of exchange: the virtual currency, also known as cryptocurrency. Virtual currencies, such as Bitcoin and Ethereum, have no physical form or government backing in the United States. They are traded and stored electronically.

Key Takeaways

• Currency is a generally accepted form of payment usually issued by a government and circulated within its jurisdiction.
• The value of any currency fluctuates constantly in relation to other currencies.
• Currency is a tangible form of money, which is an intangible system of value.
• Many countries accept the U.S. dollar for payment, while others peg their currency value directly to the U.S. dollar.
• Cryptocurrency is a 21st century innovation and exists only electronically.

Currency in some form has been in use for at least 3,000 years. At one time only in the form of coins, currency proved to be crucial to facilitating trade across continents.

A key characteristic of modern currency is that it is worthless in itself. That is, bills are pieces of paper rather than coins made of gold, silver, or bronze.

The concept of using paper as a currency may have been developed in China as early as 1000 BC, but the acceptance of a piece of paper in return for something of real value took a long time to catch on. Modern currencies are issued on paper in various denominations, with fractional issues in the form of coins.

The terms money and currency are often thought to mean the same thing. However, while related, they have different meanings.

Money is a broader term that refers to an intangible system of value that makes the exchange of goods and services possible, now and in the future. Currency is simply one, tangible form of money.

Money is used in a variety of ways, all related to its future use in some kind of transaction. For example, money is a store of value. This means that it has and maintains a certain value that supports ongoing exchanges. People know that the money they received today essentially will have the same value next week when they need to make a purchase or pay a bill.

Money is also referred to as a unit of account. That means it can be used to account for changes in the value of items over time. Businesses use money as a unit of account when they prepare a budget or give assets a value. Profits and losses are established and relied upon using money as a unit of account.

Money also has certain properties that allow for the smooth exchange of goods:

• It is fungible , or, exchangeable, so that it doesn't need to be re-valued for every transaction.
• It is durable so that it lasts for many exchanges over time.
• It is convenient to carry and divide.
• It is recognizable so that people can trust it and confidently complete their exchanges of goods and services.
• The supply of money should be stable so that its value is reliable.

Understanding what money is clarifies the meaning of currency. It's a form of money used every day by people all over the world. Checks are another form of money (known as money substitutes). Cigarettes have even been a form of money, as they were for soldiers during the Second World War.

The Bureau of Engraving and Printing is responsible for printing America's paper currency. Its parent agency is the U.S. Dept. of the Treasury. The U.S. Mint, founded in 1792, is "the nation’s sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the nation to conduct its trade and commerce."

Types of Currency

The United States Mint defines currency as money in the form of paper and coins that's used as a medium of exchange. Currencies are created and distributed by individual countries around the world.

U.S. currency in paper form is issued by the Bureau of Engraving and Printing as $1, $2, $5, $10, $20, $50, and $100 bills. The $500, $1,000, $5,000, and $10,000 bills are no longer issued but those still in circulation are redeemable at full face value. Currency issued in 1861 or earlier is no longer valid and would not be redeemable at full face value.

U.S. currency in the form of coins is issued by the Mint in denominations of 1¢, 5¢, 10¢, 25¢, 50¢, and $1.

There are over 200 national currencies currently in circulation. Including the U.S., 42 countries either use the U.S. dollar or peg their currencies directly to the dollar. According to the International Monetary Fund (IMF) the dollar makes up 58.8% of the foreign exchange reserves.

Most countries issue their own currencies. For example, Switzerland's official currency is the Swiss franc, and Japan's is the yen. An exception is the euro , which has been adopted by most countries that are members of the European Union.

Some countries accept the U.S. dollar as legal tender in addition to their own currencies, like the Bahamas, Zimbabwe, and Panama. For some time after the founding of the U.S. Mint in 1792, Americans continued to use Spanish coins because they were heavier and presumably felt more valuable.

There are also branded currencies, like airline and credit card points and Disney Dollars. These are issued by companies and are used only to pay for the products and services to which they are tied.

The exchange rate is the current value of any currency relative to another currency. As a result, rates are quoted for currency pairs, such as the EUR/USD (euro to U.S. dollar). Exchange rates fluctuate constantly in response to economic and political events.

These fluctuations create the market for currency trading. The foreign exchange market where these trades are conducted is one of the world's largest markets, based on sheer volume. All trades are in large volumes, with a standard minimum lot of 100,000. Most currency traders are professionals investing for themselves or for institutional clients that include banks and large corporations.

The foreign exchange market has no physical address. Trading is entirely electronic and goes on 24 hours a day to accommodate traders in every time zone.

For the rest of us, currency exchange typically is done at an airport kiosk or a bank before we go on a trip or while traveling.

Consumer advocates say that travelers get the best value by exchanging cash at a bank or at an in-network ATM. Other options may have higher fees and unattractive exchange rates.

What Does Currency Mean?

The term currency refers to the tangible form of money that is paper bills and coins. It's used as a medium of exchange that's accepted at face value for products and services as well as for savings and the payment of debt.

What's an Example of Currency?

One example of currency is any of the U.S. paper bills you may have on hand. It is any of the coins the U.S. issues, such as the penny, nickel, and quarter. Currency can also be the paper bills and coins issued by the governments of other countries across the globe.

What's the Difference Between Money and Currency?

Money is an intangible system of value that provides the means for the ongoing exchange of goods and services in a society. Money has taken many forms since it overtook the system of bartering. Currency is a tangible form of it. So, instead of, say, bartering agricultural produce for the clothing you may need, you can use currency (paper notes and coins) to obtain it.

Glyn Davies. "A History of Money," Chapter 2. University of Wales Press Cardiff, 2016.

Pickering, John. "The History of Paper Money in China." Journal of the American Oriental Society, vol. 1, no. 2, 1844, pp. 136-142.

National Library of Medicine. " Smoke 'Em If You Got 'Em: Cigarette Black Markets In U.S. Prisons And Jails ."

USA.gov. " Bureau of Engraving and Printing ."

US Mint. " About the United States Mint ."

U.S. Mint. " Coin Term Glossary ."

USA.gov. " United States Currency ."

United Nations Treasury. " UN Operational Rates of Exchange ."

OANDA. " US Dollar Currency ."

International Monetary Fund. " Currency Composition of Official Foreign Exchange Reserves ."

OANDA. " Swiss Franc Currency ."

OANDA. " Japanese Yen Currency ."

OANDA. " Euro Currency ."

Financial Industry Regulatory Authority. " Currency Risk: Why It Matters to You ."

X Global Markets Ltd. " The Principles Behind Lots Trading and Pips Calculation ."

Forex. " What Is Forex? "

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Understanding Money and Financial Institutions

Show me the money.

• What is money, what are its characteristics and functions, and what are the three parts of the U.S. money supply?

Money is anything that is acceptable as payment for goods and services. It affects our lives in many ways. We earn it, spend it, save it, invest it—and often wish we had more of it. Businesses and government use money in similar ways. Both require money to finance their operations. By controlling the amount of money in circulation, the federal government can promote economic growth and stability. For this reason, money has been called the lubricant of the machinery that drives our economic system. Our banking system was developed to ease the handling of money.

Characteristics of Money

For money to be a suitable means of exchange, it should have these key characteristics:

• Scarcity: Money should be scarce enough to have some value but not so scarce as to be unavailable. Pebbles, which meet some of the other criteria, would not work well as money because they are widely available. Too much money in circulation increases prices and inflation. Governments control the scarcity of money by limiting the quantity of money in circulation.
• Durability: Any item used as money must be durable. A perishable item such as a banana becomes useless as money when it spoils. Even early societies used durable forms of money, such as metal coins and paper money, which lasted for a long time.
• Portability: Money must be easily moved around. Large or bulky items, such as boulders or heavy gold bars, cannot be transported easily from place to place.
• Divisibility: Money must be capable of being divided into smaller parts. Divisible forms of money help make transactions of all sizes and amounts possible.

(Figure) provides some interesting facts about our money.

Functions of Money

Using a variety of items as money would be confusing. Thus, societies develop a uniform money system to measure the value of goods and services. For money to be acceptable, it must function as a medium of exchange, as a standard of value, and as a store of value.

As a medium of exchange, money makes transactions easier. Having a common form of payment is much less complicated than having a barter system, wherein goods and services are exchanged for other goods and services. Money allows the exchange of products to be a simple process.

Money also serves as a standard of value. With a form of money whose value is accepted by all, goods and services can be priced in standard units. This makes it easy to measure the value of products and allows transactions to be recorded in consistent terms.

As a store of value, money is used to hold wealth. It retains its value over time, although it may lose some of its purchasing power due to inflation. Individuals may choose to keep their money for future use rather than exchange it today for other types of products or assets.

The U.S. Money Supply

The U.S. money supply is composed of currency, demand deposits, and time deposits. Currency is cash held in the form of coins and paper money. Other forms of currency include travelers’ checks, cashier’s checks, and money orders. The amount of currency in circulation depends on public demand. Domestic demand is influenced primarily by prices for goods and services, income levels, and the availability of alternative payment methods such as credit cards. Until the mid-1980s, nearly all U.S. currency circulated only domestically. Today domestic circulation totals only a small fraction of the total amount of U.S. currency in circulation.

Over the past decade, the amount of U.S. currency has doubled to more than $1.56 trillion and is held both inside and outside the country. [1] Foreign demand is influenced by the political and economic uncertainties associated with some foreign currencies, and recent estimates suggest that between one-half and two-thirds of the value of currency in circulation is held abroad. Some residents of foreign countries hold dollars as a store of value, whereas others use it as a medium of exchange.

Federal Reserve notes make up more than 99 percent of all U.S. currency in circulation. Each year the Federal Reserve Board determines new currency demand and submits a print order to the Treasury’s Bureau of Engraving and Printing (BEP). The order represents the Federal Reserve System’s estimate of the amount of currency the public will need in the upcoming year and reflects estimated changes in currency usage and destruction rates of unfit currency. (Figure) shows how long we can expect our money to last on average.

Demand deposits consist of money kept in checking accounts that can be withdrawn by depositors on demand. Demand deposits include regular checking accounts as well as interest-bearing and other special types of checking accounts. Time deposits are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand. Examples are certain savings accounts, money market deposit accounts, and certificates of deposit. Economists use two terms to report on and discuss trends in the U.S. monetary system: M1 and M2. M1 (the M stands for money) is used to describe the total amount of readily available money in the system and includes currency and demand deposits. As of August 2017, the M1 monetary supply was $3.5 trillion. M2 includes all M1 monies plus time deposits and other money that is not immediately accessible. In August 2017, the M2 monetary supply was $13.6 trillion. [2]

Credit cards, sometimes referred to as “plastic money,” are routinely used as a substitute for cash and checks. Credit cards are not money; they are a form of borrowing. When a bank issues a credit card to a consumer, it gives a short-term loan to the consumer by directly paying the seller for the consumer’s purchases. The consumer pays the credit card company after receiving the monthly statement. Credit cards do not replace money; they simply defer payment.

Key Takeaways

• What is money, and what are its characteristics?
• What are the main functions of money?
• What are the three main components of the U.S. money supply? How do they relate to M1 and M2?

Summary of Learning Outcomes

Money is anything accepted as payment for goods and services. For money to be a suitable means of exchange, it should be scarce, durable, portable, and divisible. Money functions as a medium of exchange, a standard of value, and a store of value. The U.S. money supply consists of currency (coins and paper money), demand deposits (checking accounts), and time deposits (interest-bearing deposits that cannot be withdrawn on demand).

• “Currency in Circulation,” https://fred.stlouisfed.org , accessed September 7, 2017. ↵
• “Money Stock and Debt Measures—H.6 Release,” https://www.federalreserve.gov , accessed September 7, 2017. ↵
• Intro to Business. Authored by : Gitman, et. al. Provided by : OpenStax. Located at : http://cnx.org/contents/[email protected] . License : CC BY: Attribution . License Terms : Download for free at http://cnx.org/contents/[email protected]

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Money Vocabulary: 42 Words to Talk About Money in English

Today, you’re going to increase your money vocabulary with 42 words and phrases about money. Also check out Maths Vocabulary in English: Do You Know the Basics?

Like it or not, money is a big part of most of our lives.

So it’s important to be able to talk about it, right?

Here are 42 usfeul words and phrases to help you talk about money in English.

Money Vocabulary #1

Words to describe physical money.

This is British English, and it basically means “a piece of paper money.” It’s short for “bank note.”

“I found a ten-pound note in the street the other day.”

“I tried to buy a sandwich with a fifty-pound note , but the shopkeeper wouldn’t accept it.”

“Bill” is the American word for “note.”

So we can talk about ten-pound notes , but we usually say ten-dollar bill .

My main question is “Who’s Bill?”

The money that isn’t notes — those shiny metal things? Those are coins.

Here’s something I’ve noticed about travelling:

In some countries, you end up with loads and loads of coins in your pocket. They just have so many of them.

The UK is one of those countries.

This word actually means the small pieces of metal that explode out of a bomb or a grenade.

But when we’re talking about money, it’s a very informal way to describe coins.

But there’s a difference in how we use “shrapnel.”

The word “coin” is countable:

“How many coins have you got in your pocket?”

But the word “shrapnel” is uncountable:

“How much shrapnel have you got on you? I need to get a ticket, and the machine doesn’t accept notes.”

When we pay for something, we do it one of two ways.

We can give the exact change : if the toothbrush you’re buying costs £1, and you give the shopkeeper £1, you’ve given the exact change.

But if you don’t have any shrapnel on you, you might want to pay with a five-pound note.

Then the shopkeeper gives you £4 in change.

Or perhaps you only have a fifty-pound note. So you try to pay for the toothbrush with that.

The shopkeeper just shakes his head and says, “Sorry, mate. I can’t break a fifty.”

What does it mean?

If the shopkeeper can’t give you the correct change for the fifty pounds because he doesn’t have it, then he can’t break the fifty-pound note.

And you don’t get a toothbrush.

Most countries have very, very low-value coins.

What colour are they in your country?

Probably, they’re this dark orange colour — or copper colour.

That’s why we call them coppers.

Money Vocabulary #2

Words to describe amounts of money.

This is British English, and it means “five-pound note.”

Easy, right?

OK, you’ve guessed this one, haven’t you?

Yep — it means “ten-pound note.”

This only works for five pounds and ten pounds. We can’t say, for example, a twentier. It just sounds weird.

A lot of people I know (including myself) use these words when we’re outside the UK to talk about ten lira or ten lev or ten euros or whatever the currency is where we are.

I wrote about this in my big post on how to say numbers in English .

If you add “K” to a number in English, it means “thousand.”

Here’s an example for you to see how it works (and also to see how ridiculously overpriced things are in the UK).

These are beach huts:

They’re cute things that you’ll often find on the beach in the UK.

The idea is that you buy one and then you have a little room to change your clothes in, drink tea in and even have a nap in when you’re at the beach.

This one in the photo is in Brighton, my hometown.

Want to buy one? Well — they’re pretty expensive.

These guys cost over 20K.

Ridiculous, isn’t it?

“Grand” is exactly the same as “K.”

It means “thousand.”

“I still can’t believe those beach huts are going for over 20 grand each.”

Cash is real money — not virtual money.

If you’ve got bank notes or coins, then you’ve got cash.

If you’re using your card (or cheques, like it’s the ‘80s), then you’re not using cash.

Also — Johnny Cash . Because there’s never a bad time for Johnny Cash.

Money Vocabulary #3

Words to describe currencies and denominations.

I’m sure you know this one. It’s the currency used in the UK.

But just one thing: you don’t need to say “sterling.” No one uses it!

In fact, I had no idea what it meant until I was an adult.

You’ll hear this one a lot in the UK.

This is British English, and it means “pound.”

But be careful!

The plural of “quid” is “quid” (not “quids”).

So your kettle might cost one quid or fifty quid.

Which is really expensive for a kettle. Even a nice electric one with flashy green lights and everything.

Don’t buy it!

This is originally American English, and it means “dollars.”

When I visited Australia back in February, I was pleased to hear that they use “bucks” there, too. A lot.

It feels good to say, right?

“That’ll be seven bucks , please.”

This is short for “pence.”

There are 100 pence in a pound.

It’s also the same in the singular and plural — so something could be 1p or 50p.

But prices can get a little tricky to say when they get more complicated. Click here for more on how to say prices correctly — it’s harder than you think!

Money Vocabulary #4

Ways to talk about using the atm.

OK. What’s this?

Yep — it’s an ATM.

Cash machine

OK. What about this?

But we can also call it a cash machine .

Hole-in-the-wall

And this? What’s this?

Yep — it’s an ATM or a cash machine or, if you’re talking to someone from the UK, a hole-in-the-wall .

But what can you do with it?

OK. You’ve got no cash on you, and you need to buy that amazing teapot — and you need to buy it NOW!

So you go to the cash machine and withdraw the cash you need.

“Withdraw” is quite a formal word.

In most situations it’s nice to use this phrasal verb instead:

“Give me five minutes — I’ve just got to go to the ATM and take out a bit of cash.”

So we can use the ATM to withdraw money, but we can also use it to do the opposite.

When you deposit money, you take the real money you have in your hand, let the machine eat it up and watch the money get added to your bank account.

So “withdraw” is quite formal and “take out” is quite informal.

Also “deposit” is quite formal and “put into” is quite informal.

“Someone’s put about four grand into my account! Where did it come from?”

Money Vocabulary #5

Ways to describe the money you get.

This is, surprisingly, the day you get paid.

Maybe it’s every Monday.

Or maybe it’s on the first of the month.

Or maybe it’s NEVER! (That job was awful.)

Usually when people talk about their salary, they’re describing how much they get paid every year or every month or, sometimes, every hour — but only two of these are technically correct.

A salary is how much you get paid every year.

However, you’ll often hear people talk about a “monthly salary.”

And that’s fine, as the monthly salary is calculated based on how much you make in a year.

So how do we describe the amount of money you get per hour?

That’s when “wage” comes in.

A wage is usually used to describe the money you get for one hour’s work.

Most countries have a minimum wage , which is the smallest amount of money a company can legally pay their workers.

This is the money you get over a period of time.

So we can talk about a weekly income , a monthly income or a yearly income .

But we actually use this word in lots of others ways.

For example, a way to describe poor families or rich families is by using the term “low-income household” or “high-income household.”

This is often used by people who work in sales. Probably because when you’re trying to sell stuff to people, it’s good to avoid the words “rich” and “poor.”

We can also use the phrase “on a six-figure income” (an income with six numbers, e.g., $500,000).

It’s basically a way to say you’re rich:

“50 quid for a kettle? No problem — I’m on a six-figure income .”

Money Vocabulary #6

Words to describe paying less.

Here’s it is — your dream toaster:

It not only makes toast, but can filter coffee, travel through time and also make your enemies do embarrassing things in public.

But there’s a problem. A predictable one.

It’s really expensive — completely out of your price range.

Then, one day, the shop decides to sell it at a much cheaper price.

In fact, they cut the price by 80%.

That’s an 80% discount.

Now you can afford it!

Go get that toaster!

There are some times of the year when the shops go crazy with discounts.

In the USA, there’s an event called Black Friday. And it’s absolutely mental and ridiculous.

Just for one day, the shops discount everything — a lot.

As a result, people start queuing outside stores one, two, even three days before the special day.

When the doors open, everyone tries to kill each other (almost) to get to the cheap, heavily discounted, stuff:

(Really — is stuff that important?)

Anyway, Black Friday is a massive sale — a period of time when a shop, or lots of shops, have big discounts.

You also have closing-down sales , when shops are about to close down, and they want to sell everything they have left.

When you buy something at a discount because it was part of a sale, you can say it was “on sale.”

“Do you really want to buy that?” “Yeah — I think so. Anyway, it’s on sale .”

Mates’ rates

Sometimes shops give discounts.

But so do friends.

Let’s say you’ve got a good friend who does awesome tattoos.

Everyone wants her to do their tattoos.

In fact, she’s the most popular tattoo artist in town and, as a result, she charges a lot of money for them.

But not to you — you’re one of her best friends.

You can get a tattoo from her at a much cheaper price.

She’s your friend, so she charges you less.

She does that tattoo at mates’ rates — a discount for friends.

Money Vocabulary #7

Ways of describing having no money.

We’ve all been there, right?

That time when you just have no money to spend.

There are a few ways of describing this.

This is British English and basically means “without money — at least for now.”

It’s an adjective:

“Coming to the pub?” “Not tonight, mate. I’m skint at the moment.”

Remember — it’s usually a temporary situation (like the day before payday). It’s different from being poor, which is something more permanent.

This is basically the same as “skint” but, it’s used outside the UK.

This means “very broke — really — I have literally NO money!”

Money Vocabulary #8

Ways of describing how much stuff costs.

You know that feeling, right?

You’re in a new city, and you’re hungry.

You see a restaurant that looks quite good — not too posh, so probably not expensive.

You sit down and look at the menu … and the prices.

Now — if the menu was really expensive you’d just leave, right?

But what if it’s only a bit expensive?

Just a little bit more than it should cost?

Well — you’d probably stay, wouldn’t you?

Even though the menu’s a bit pricey — a little bit more expensive than it should be. But only a little bit.

A waste of money

OK. All of a sudden, you’ve got a grand.

Quick! What do you spend it on?

You could spend it on a trip around the world.

Or you could put it in the bank and save it.

Or you could renovate your kitchen — it really needs it.

All good ideas, right?

Or you could buy that giant dog statue you saw yesterday.

Not such a good idea, right?

What? You went for the dog statue? Seriously?

You’ve spent the money on something stupid! It’s a complete waste of money !

When you buy something, and you get a great deal. It’s much cheaper than expected.

Perhaps it’s a skiing holiday in France for less than 100 bucks.

Or a beautiful teapot for just a quid.

Whatever it is, enjoy it — it’s a bargain!

Money Vocabulary #9

Ways of describing spending money.

Awesome! You’ve received a bonus 200 quid in your salary this month.

What are you going to do with the extra cash?

Well — you could save it.

Or you could splash out on that dream toaster you’ve always wanted.

“Splash out” basically means “spend freely.”

It’s usually for a special treat — something you wouldn’t usually buy because it’s a little pricey. But just this once. This is a special occasion! Why not?

Blow it all

You decide to sell your car because you realise that bikes are way better. (They are!)

So you sell it, and you get a good deal for it.

One day you have loads of money in your pocket.

So you take all your friends out for a big meal.

The next day you wake up and check how much is left.

Nothing! Not a penny!

You’ve blown it all !

When you blow your money on something, it means you spend a lot of money on something useless.

“When he was fired, the company gave him 20 grand. Guess what? He blew it all on a golden toaster. Unbelievable!”

Break the bank

This means “spend more than you should” or “spend more than you can afford.”

However, it’s often used in the negative to give a good reason for buying something:

“Well — it looks fun … and the tickets are only five quid.” “Yeah! Let’s do it! It’s not exactly going to break the bank !”

Money Vocabulary #10

Ways of describing not spending money.

Here’s Tony. You may remember him from my post on negative personality adjectives :

He hates sharing his stuff.

And he most certainly will NOT be buying you a drink anytime soon.

He’s stingy!

It’s basically the opposite of “generous.”

Tight-fisted

This is basically the same as “stingy.”

We can also shorten it and just say “tight.”

“Hey, Tony! Can you lend me a couple of quid? I haven’t got enough on me for the ticket.” “No. Buy your own ticket!” “Come on! Don’t be so tight !”

On a tight budget

Money’s a funny thing, isn’t it?

Sometimes there are good times, and we feel like we can afford pretty much anything.

And sometimes there are … not-so-good times.

Times when we need to be careful about what we spend.

Times when even spending a quid or two on a cup of tea can break the bank.

That’s when we’re on a tight budget .

On a shoestring budget

This is similar to “on a tight budget,” but we use it when we’re describing how much money there is for a specific thing.

I have a friend who decided to cycle from Istanbul to Manchester on a shoestring budget.

Some of the best films were made on a shoestring budget.

Get the idea?

OK, so that was a lot of money vocabulary — 42 words and phrases to talk about money in English.

But what did I miss?

What other words and phrases about money can you think of?

Let me know in the comments!

Did you like this post? Then be awesome and share by clicking the blue button below.

18 thoughts on “ Money Vocabulary: 42 Words to Talk About Money in English ”

Great work! Fun to read and stuff to learn. Always glad to see your posts.

Thanks for the wonderful feedback! 🙂

Thanks, its very useful for who want to travell abroad…

Thanks Magdalena. I’m glad you found it useful!

“I want more” Thanks. By the way, I am doing my Ph.D. in Translation; Arabic -English – Arabic. Any references to be recommended.

Thanks for the positive feedback, Ehab.

I can’t recommend anything about translation, as it’s not my area. Also, you’ll need to be more specific.

My father is actually an Arabic to English translator. Maybe you can check out some of his work? His name’s Dr. Peter Clark.

I have forgotten to tell you, my Ph.D. is in modal auxiliary verb functions, comparative study.

I m enriched after reading this .Thank you Gabriel and Clarke . Please send me more English stuff .

Also — great use of pun! 🙂

I will always appreciate your works Gabriel because people who not native speakers of the English language always find pleasure in them. they make my work easy as a teacher of English. thanks

Hi Justine,

Thanks for the positive feedback.

I’m really happy that my posts help out both learners as well as teachers of English.

I have a question: Would you be interested if I converted some of these blog posts into lesson plans with activities? Would they be the sort of thing you could use as a teacher?

I have read it just now as I’m preparing a lesson plan on money vocabulary and found this blog really useful! So, Yes, I would be interested in lesson plans with activities above all in this period of on-line schooling!

Thanks Valentina,

Good to know!

Yes, definitely! Great stuff and a really enjoyable way to learn new vocabulary and expressions!

Hi Gabriel, I like your post very much. And your pictures are really awesome. I am an Englisch teacher myself (not a native speaker) and I find your “vocabulary posts” useful and informative. Ps. Those beach huts are really expensive! Who can AFFORD them (you have missed this word!)

I know! How ridiculous is the UK housing market?!!

I’m really glad that my posts are helping teachers as well as learners.

I have a quick question: If I converted some of these posts into lesson plans, would that be the sort of thing that you’d be interested in as a teacher?

Thanks again for the positive feedback! 🙂

I, personally, love the idea about the lesson plans. Thanks a lot for your work and the happy mood in your posts. This time I won’t skip leaving my name.?

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Synonyms of paper money

• as in dead presidents
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Thesaurus Definition of paper money

Synonyms & Similar Words

• money orders
• legal tender

Thesaurus Entries Near paper money

papering over

paper money

Cite this Entry

“Paper money.” Merriam-Webster.com Thesaurus , Merriam-Webster, https://www.merriam-webster.com/thesaurus/paper%20money. Accessed 27 Apr. 2024.

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