Key Takeaways
• President Trump has ordered a stop to minting the penny.
• Each penny costs 3.69 cents to produce, creating a loss.
• Removing the penny could lead to price rounding.
• Other countries have already dropped low-value coins.
• Ending the penny may speed up cash transactions.
America may soon say goodbye to its smallest coin. The penny has been part of daily life for centuries. However, new orders from President Trump have put the penny in peril. In fact, the U.S. Treasury now spends 3.69 cents to make one penny. Therefore, each coin costs more than its face value.
What’s Happening with the Penny
First, the president directed the mint to stop making pennies. Next, officials will study how ending penny production affects our wallets. Then, businesses and banks will adjust to life without the penny. As a result, cash transactions will use nickels and dimes more often.
Why the Penny Costs More Than Its Value
The penny’s makeup includes zinc and copper. In addition, it takes energy and labor to create each piece. Consequently, the mint spends 3.69 cents per penny. That means America loses over two cents every time someone holds onto their penny. Other coins, like the nickel, also cost more than their value. Yet they still circulate because they cost less to make.
How Eliminating the Penny Could Affect You
Without the penny, cash payments will change. For example, stores may round totals to the nearest five cents. If your bill ends in one or two cents, it might drop to zero. Likewise, totals ending in three or four cents could round up to five. Therefore, over time, small gains and losses may cancel out.
In addition, piggy banks will hold fewer coins. Kids who save pennies will switch to nickels or dimes. That could make learning to save more exciting. Rather than hauling heavy rolls of pennies, banks will handle lighter coin bags.
What Other Countries Have Done
Canada stopped making its one-cent coin years ago. They simply round cash totals and use digital payments for exact amounts. Australia and New Zealand also retired their low-value coins. As a result, people have adapted smoothly. Since Canada pulled its penny, small rounding differences balance out across many transactions.
What’s Next for America’s Coins
Once the penny is gone, the mint will focus on making nickels, dimes, quarters, and dollar coins. Those coins cost less to produce than their value. Therefore, the mint can save money and reduce waste. Next, Congress may pass laws to approve the change. Meanwhile, everyday Americans might see signs at checkout counters.
Public feedback will shape the final plan. After hearing from businesses and consumers, lawmakers will decide how to round prices. They may also choose to phase out the penny over months or years. That gives people time to adjust.
How Digital Payments Play a Role
However, as coins vanish, digital payments will grow. Mobile apps and cards make exact payments easy. Consequently, fewer people will need physical change. For instance, paying by phone automatically charges the right amount. No rounding is necessary.
Moreover, peer-to-peer payment systems let friends swap money instantly. That reduces the need for coins in social settings. In other words, the digital shift makes losing the penny less painful.
Why Some People Loathe the Penny
Yet, not everyone likes the idea of scrapping the penny. For many, the penny is a symbol of history. It honors President Lincoln and reminds people of old values. Plus, collectors love rare pennies. They worry that ending production could hurt hobbyists. Still, financial experts argue the penny no longer makes economic sense.
Is There a Plan to Remember the Penny?
Yes. The United States Mint could create special sets or commemorative coins. That way, history fans can keep a piece of the past. Also, museums might display early pennies. Therefore, the penny’s legacy can live on even if everyday use ends.
What You Can Do Now
First, sort your pocket change. If you have large penny jars, consider rolling them soon. Banks may require rolled coins before they accept them. Second, ask local stores how they will handle rounding. In addition, stay informed on proposed rounding rules. That helps you plan your budget.
In the meantime, enjoy using the penny while it lasts. After all, it has served America for over 200 years.
Frequently Asked Questions
Why does the penny cost more to produce than it’s worth?
The metal and labor needed to mint the penny add up to 3.69 cents. That exceeds its one-cent face value.
How will rounding work without the penny?
Stores may round cash totals to the nearest five cents. Amounts ending in one or two cents drop down. Totals ending in three or four cents round up.
Will digital payments prevent rounding issues?
Yes. Card and mobile payments charge the exact amount. Therefore, no rounding is needed for digital transactions.
Can collectors still get pennies after production stops?
Likely. The mint may release special sets or limited runs for collectors. That preserves rare and historic coins. Source: https://www.nydailynews.com/2025/12/12/readers-sound-off-on-recycling-pennies-mamdanis-critics-and-remembering-sinatra/