How Much Does It Cost to Make Money

More than you would think. It cost 1.5¢ o make a penny, making the face value of a penny less than its actual value. That means that U.S. Mint, Bureau of Engraving and Printing, now produces some coins at a loss.

Here is what is cost to make American coins and dollar bills:
1 penny cost 1.5¢ to produce
5 cents cost 6¢ to produce
10 cents cost 6¢ to produce
1 quarter cost 11¢ to produce
1 coin dollar cost 25¢ to produce
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1 dollar bill cost 5¢ to produce
5 dollar bill cost 8¢ to produce
10 dollar bill cost 10¢ to produce
20 dollar bill cost 9¢ to produce
50 dollar bill cost 9¢ to produce
100 dollar bill cost 11¢ to produce

Last year the mint lost $22 million making pennies and nickels. Rare dollar coin cost 25 cents more to produce than dollar bill. But the life span of a coin is 25 years comparing to 21 months.

The obvious solution to make a penny less expensive is to change the composition of the coin, making in with cheaper metals or perhaps even plastics, as is done with some European currency. However, some people are concerned that changes in composition could change the look and feel of this iconic American coin. Others have suggested that it may be time to let go the one cent, a decision which would certainly change the way Americans do business.

The nickel also has a physical value which is higher than its face value. Other currency, such as dimes and quarters, costs much less to make. The face value of a quarter may be 25¢ US, but it only costs 11¢ US to make one. The relative high cost to make a penny or a nickel is balanced out by the lower costs of producing other coins.
Except the cost of material money to make money include anti-counterfeiting features. The new 2011 hundred dollar bill has a bell that shifts colors and a 3-D ribbon. The production of it is going to cost 3 cents more.