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The money-shredding machine is a machine that destroys old money by shredding it to pieces. It is seen only in the episode "Mr. Krabs Takes a Vacation."
The machine resembles a large red cube, which has the word "shredder" on it in yellow writing. Below the writing is a large window, where people can see the shredded money inside. On the side of the shredder, there is a conveyer belt which takes the shredded money out of the machine.
While Mr. Krabs and SpongeBob are taking a tour in the Bikini Bottom Mint, one of the parts of the tour Bill shows the tourists is the money-shredding machine. Mr. Krabs, upon seeing the shredded money, becomes devastated and starts crying so much that his tears start to flood the mint.
SpongeBob then reassures Mr. Krabs, and shows him that the shredded money taken out of the shredder, is recycled, and is turned into new money. This causes Mr. Krabs to become elated, before Bill, tired of the two's nonsense, threatens to throw them out.