Cut the sides of an envelope so that you can slide a dollar bill through the envelope and see both sides of the dollar sticking out of the envelope. Also, cut a thin vertical strip out of the backside of the envelope.

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To do the trick, show your audience the dollar bill and the front of the envelope. Slide the dollar through the slits on the sides so that it is sticking out of both sides of the envelope. Slide the dollar back and forth so the audience can see it is one full dollar bill.

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Next, cut the envelope with the dollar in half! Since you already cut a vertical strip from the back side of the envelope, when you go to cut it in half, make sure the scissors cut the front half of the envelope and not the dollar.