Why banknotes have different lifespans
Титульна AI-згенерована ілюстрація / AI-generated cover illustration. Generic cashier handling a frayed note beside a crisp stack; illustrates wear, not a real currency specimen or measured lifespan.
Banknotes do not share one lifespan across every denomination. Wear depends on their material and how often they change hands. Smaller notes are more frequently used for everyday purchases, while larger notes may spend longer stored as savings. Saying that all paper money lasts about three years is therefore misleading. [1, 2]
The US Federal Reserve estimates circulation lifespans separately for each denomination. When cash is processed, usable notes return to circulation, while worn ones are removed and destroyed. These are estimates of an average lifespan based on particular data, not expiry dates after which every note automatically stops being money.