I'm going to say, No, it is not real money, it is an item to be burned just the same way people drop a coin in a water fountain and then they make a wish and hope it comes true. Looks to me like the same thing, you collect the sacrifice ( fake money & maybe other items ) and burn it in an effort to change your energy from one of Needing money to one of being so blessed they could burn money. It's a whole different energy and has to do with the law of attraction, by changing your own energy, from needing money, Universe may just channel more money into your life.
How did I do, did I win a pile of Money that I can burn ?
For the record, I am from Texas, so if I'm right it's not because it's our tradition.
Yes,you are right, it is not real money, burning sacrificial objects is our tradition.