Paper currency was introduced in the U.S. by President Abraham Lincoln in 1862.

In 1861, the United States government's financial situation was racked by civil war and becoming desperate. In the face of national bankruptcy, the government took an unprecedented step. After much deliberation, the Secretary of the Treasury was authorized to issue 150 million United States treasury notes which were considered legal tender for all debts public and private. These notes, called Legal Tender Notes or United States Notes, were issued in denominations of $1 to $1000 and marked the first real national currency for the United States. 

EconEdLink 
Paper currency has evolved in many ways since its introduction in the U.S. Students imagine taking it to the next step as they design paper currency that contains special features for the visually impaired in the EconEdLink lesson The Need for Money that Everyone Can Use (6-8). 

Should the penny stay in circulation or is it simply a nuisance coin? Explore the controversy over the penny in The Penny Problem (6-8). 

Explore various forms of money throughout history in the EconEdLink lesson The Changing Face of Money (K-2). 

In No Funny Money, Honey....I Want the Real Thing! (K-5), students learn the characteristics of money. They will learn about how we keep our money safe. Then they will test their knowledge by taking a true/false quiz and assembling a $10 bill. This lesson incorporates student interactives and links to a variety of Web resources.

In 2002 the countries of the European Union introduced a new currency—the Euro. Marketplace: Let’s Go Euro! (6-12) provides an introduction to the Euro.

In What Face do You Use? (3-5), students learn that in order to facilitate the exchange of goods and services, most nations create currency for use as money. They examine the characteristics of money by comparing and contrasting examples of U.S. and world currency.

Smithsonian's History Explorer
The Legendary Coins and Currency Timeline (5-12), introduces students to a unique and interesting perspective of American history as they navigate chronologically through the coins and currency included in this online exhibition. The timeline spans the years 1652 through 1974 and includes artifacts from every era of American history.  Clicking on the images on the timeline will allow students to rotate and zoom in on objects from the National Numismatic Collection for detailed examination.

Illuminations
In Foreign Currency (6-8), students examine currencies from foreign countries and compare them with the U.S. dollar. This lesson is part of the unit Measuring Up.