Funny Money was founded in 1996 in Maryland by lead vocalist Steve Whiteman of Piedmont, WV and guitarist Billy Andrews, who met at a charity gig in Baltimore.

Whiteman and Andrews recruited guitarist Dean Cramer, one of Whiteman's vocal students, bassist Ned Meloni, who had played with New York's Ice Water Mansion, and Washington, D.C.'s Monarch in the 1980s and had extensive studio experience, and drummer Bobby George.

George left the band shortly afterward, and Geoff Burrell of Tubefreeks and Swingin' Dix was recruited in his place.

Whiteman and Cramer recruited guitarist Louis Coppola, former Centerfold bassist Mark Schenker on Meloni's recommendations, and drummer Sam Stillwell.

The song "Play Me Like a Rhythm" from the 2006 album "Stick It" is featured in the 2013 movie "The Frozen Ground".