Mill (currency) facts for kids
A mill (sometimes called a mil or mille) is a very small unit of money. Think of it as a tiny fraction of a US dollar. Specifically, one mill is 1/10th of a US cent, or 1/1000th of a US dollar.
Even though you won't find a physical mill coin, this unit is still used in a few important ways, especially in the United States.
Contents
What is a Mill?
A mill is a way to talk about very small amounts of money. It helps when prices or taxes need to be super precise. Imagine a dollar divided into 1,000 tiny pieces. Each piece would be one mill!
- 10 mills make 1 cent.
- 100 cents make 1 dollar.
- So, 1,000 mills make 1 dollar.
Where Do We See Mils?
You might not see the word "mill" every day, but you definitely see prices that use this tiny unit.
Gasoline Prices
The most common place to see mills is at the gas station. When you buy gasoline, the price is often shown like $4.119 per US gallon. That last number, the "9," represents nine mills. So, you're paying $4 and 11 cents and 9 mills for each gallon. This small fraction can add up when you buy many gallons.
Taxes on Land
Mils are also used when talking about taxes, especially property taxes on land and buildings. Local governments might set a tax rate in "mills." For example, a tax rate of "10 mills" means that for every $1,000 of your property's value, you would pay $10 in tax. This helps governments collect very specific amounts of money for public services like schools or roads.
Electricity Prices
Sometimes, the price of electricity is also calculated using mills. Utility companies might charge a certain number of mills per kilowatt-hour (a unit of electricity). This allows them to set very precise rates for how much you pay for the power you use in your home.
Why Use Mils?
Using mills allows for very exact calculations, especially when dealing with large amounts of money or many small transactions. Even though a mill is tiny, it can make a difference in total costs or tax collections. It helps to make sure prices are fair and accurate down to the smallest fraction.
Images for kids
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500 mil (£P½) note issued by the Anglo-Palestine Bank in Tel Aviv in 1948.
