"Money makes the world go round" is an idea that Paul Glover decided to test in Ithaca, NY. Ithacahours is a local currency in which bills are in denominations of hours. Time is money, right? So a massage therapist offers a one-hour session in exchange for one Ithacahour. That bill can be used to exchange for local goods and services including produce and piano lessons, dog training or dental cleaning. Alternatives Federal Credit Union kept track of how the currency circulated in the city of Ithaca. All in an effort to see how currency could circulate in the local economy. Think globally, act locally was more than a bumper sticker.
Several millions dollars circulated in the 1990s in Ithaca with 500+ businesses accepting IthacaHours. Paul Glover had seen an "Hour" note issued to workers by 19th century British industrialist Robert Owen which could be spent at the company store.
This piece beautifully captures the sentimental and practical sides of money. I completely relate to the joy of finding a forgotten fiver—pure magic! The children in my class still get their pocket money in cash...phew.
That’s a great blog Kate and has my memory ticking over. I’m in Oz and I’m of an age where I remember pounds, shilling and pence, then the change over to decimal currency on the 14th February 1966.
I used to give my grandchildren cash. The older ones understood the value of eg., $20. However the youngest one, once we decided not to buy presents anymore, we’d give him his money in smaller denominations. He would be stoked as he thought he had way more than his siblings. Unfortunately sending cash by post became too risky, so now it’s a transfer to their personal bank accounts until they turn 18. We can’t keep up.
Thank you for your comment. I love the idea that your youngest grandchild thought he had more money because he had a greater number of coins. The simplicity of childhood! If currency disappears then no child will again experience the thrill of some money being secretly pushed into their hands, by a generous relative at the end their a visit.
Hi Kate! It's interesting to see so many fundamental cultural changes in real time, isn't it? My partner's son (doctor) and daughter-in-law (lawyer) do not have checking accounts. They pay for almost everything with their phones. I use my checking account to make quarterly federal tax payments and property tax payments, and once in a while random bills that require checks. My parents (89 and 94) use checks for almost everything, though at least now at the grocery store they've started to use their credit cards instead of filling out checks at the cashier. BTW, here in the states we love our almost worthless pennies, which costs the country a couple hundred million $ a year (see: https://en.wikipedia.org/wiki/Penny_debate_in_the_United_States). At least in Canada they were smart enough to get rid of theirs.
Hi Elise! I agree, in this era it is markedly different how each generation pays for things. In the UK we still have pennies in circulation but they have not made new pennies for years. But the US has always had a very different payment system from the UK. For instance, in the UK there is not a universal credit score, which I know is very important in the US.
"Money makes the world go round" is an idea that Paul Glover decided to test in Ithaca, NY. Ithacahours is a local currency in which bills are in denominations of hours. Time is money, right? So a massage therapist offers a one-hour session in exchange for one Ithacahour. That bill can be used to exchange for local goods and services including produce and piano lessons, dog training or dental cleaning. Alternatives Federal Credit Union kept track of how the currency circulated in the city of Ithaca. All in an effort to see how currency could circulate in the local economy. Think globally, act locally was more than a bumper sticker.
So interesting, what were their conclusions?
Several millions dollars circulated in the 1990s in Ithaca with 500+ businesses accepting IthacaHours. Paul Glover had seen an "Hour" note issued to workers by 19th century British industrialist Robert Owen which could be spent at the company store.
A great idea. I have heard of a variation on the same theme in different communities, and must be of benefit to the community.
This piece beautifully captures the sentimental and practical sides of money. I completely relate to the joy of finding a forgotten fiver—pure magic! The children in my class still get their pocket money in cash...phew.
I am so happy to hear that some children still get their pocket money in cash. Hopefully some even have a piggy bank at home!
That’s a great blog Kate and has my memory ticking over. I’m in Oz and I’m of an age where I remember pounds, shilling and pence, then the change over to decimal currency on the 14th February 1966.
I used to give my grandchildren cash. The older ones understood the value of eg., $20. However the youngest one, once we decided not to buy presents anymore, we’d give him his money in smaller denominations. He would be stoked as he thought he had way more than his siblings. Unfortunately sending cash by post became too risky, so now it’s a transfer to their personal bank accounts until they turn 18. We can’t keep up.
Thank you for your comment. I love the idea that your youngest grandchild thought he had more money because he had a greater number of coins. The simplicity of childhood! If currency disappears then no child will again experience the thrill of some money being secretly pushed into their hands, by a generous relative at the end their a visit.
Hi Kate! It's interesting to see so many fundamental cultural changes in real time, isn't it? My partner's son (doctor) and daughter-in-law (lawyer) do not have checking accounts. They pay for almost everything with their phones. I use my checking account to make quarterly federal tax payments and property tax payments, and once in a while random bills that require checks. My parents (89 and 94) use checks for almost everything, though at least now at the grocery store they've started to use their credit cards instead of filling out checks at the cashier. BTW, here in the states we love our almost worthless pennies, which costs the country a couple hundred million $ a year (see: https://en.wikipedia.org/wiki/Penny_debate_in_the_United_States). At least in Canada they were smart enough to get rid of theirs.
Hi Elise! I agree, in this era it is markedly different how each generation pays for things. In the UK we still have pennies in circulation but they have not made new pennies for years. But the US has always had a very different payment system from the UK. For instance, in the UK there is not a universal credit score, which I know is very important in the US.