AJ stands for Andrew Jackson, our 7th president. His reputation for toughness earned him the nickname "Old Hickory." A hero of the War of 1812, Jackson has appeared on the $20 bill since 1928.

The paper money problem

The U.S. was the first country with an official currency. 

The U.S. was the first nation to adopt an official currency and everyone agreed that it would be the dollar, worth 100 cents.

The first paper one-dollar bills appeared in 1785. Oddly, foreign money, such as the Spanish dollar, continued to be legal tender in the U.S. until 1857.

During the switch from coins to paper dollars, people could exchange paper money for gold and silver coins, and vice versa. That's where the term "good as gold" comes from.

The problem with this new plan was that the U.S. colonies didn't have enough gold and silver on hand to make equal exchanges. So, no one could be exactly sure what the paper money was worth at any one time. This caused many problems.

For example, if you had silver coins with a face value of $45 and wanted to exchange them for paper money, the amount you received would vary from day to day and person to person. It was a gamble.

On Monday, for example, your coins might be worth $65 in paper, but on Friday they might be only worth $22. With no formal system, and no one to monitor it, people could make up their own rules...and they did!

To help avoid all this confusion, Congress passed the "National Bank Act of 1863," which created national banks in cities throughout the U.S. The Act also helped create standards for banks and the minimum amount of money that a bank must have. People quickly accepted paper money as the standard form of currency.

The story on a $1 bill

Try fun things to do with a dollar bill.Fun Things to Do With Dollars

• Save
• Collect
• Impress kids in the distant future. When you have a crisp, clean $1 bill, save it for 30 years, then bring it out and show your kids how much the dollar bill has changed.
• Make a frog with a buck. Borrow or buy “The Buck Book," by Anne Akers Johnson. It has "all sorts of things to do with a dollar bill—besides spend it." It includes easy-to-follow instructions on how to make a "dime-in-ring," jumping frog, peacock, and a bow tie—all with just a dollar.

CloseThe markings found on the current one-dollar bill tell an incredible story. Look at the face and the back for pieces of its rich history.

There are more than 10 identifying marks on the front of the one-dollar bill. On the back, there are five, including the Great Seal of the U.S. Do you understand the design and symbolism of the dollar bill? To learn more, go to the National Institute of Environmental Health Sciences' website for kids.

The history of American money going from silver to paper stretches far beyond our country’s history and has seen some major changes.

There are sure to be more revisions with our currency, so be sure to check in with AJ’s to see what’s different with your money!

Houston Texas Fire Fighters Federal Credit Union What makes credit unions so great? Members like you. Every dollar you invest in your credit union earns you money while other members borrow it. When you're ready for a loan, other members' savings will be there to help you out at the lowest possible cost.