The penny is going away. How do you feel about that?
The U.S. recently stopped minting pennies, largely because they cost more to produce than they are worth. And a reader wrote in to ask if we could have a penny-based discussion, because she has some concerns.
I hadn't looked into this a whole lot, but after reading the opinions of people who know more about this than me...I am not particularly worried.
Prices can be rounded both up and down
From what I've read, companies will employ typical math rounding rules; a $9.98 purchase will round up to $10, whereas a $9.96 purchase will round down to $9.95.
Some companies are also choosing to round in the customer's favor.
This economics professor says that the rounding up and rounding down should balance out and will not have a noticeable effect on consumers.
And this economics professor says the same thing.
This Richmond Fed article says things will err slightly more on the side of rounding up, but if my math is correct, this comes out to an increase of $42.60/year per person, which is not terribly significant. EDIT: Reader MB astutely pointed out I did my math backwards!! It's actually less than $.03/person/year. Ha.
(Related: one study said that since so many prices end in 9, there would be a lot of rounding up. But this study didn't consider sales tax; in states with a retail sales tax, a $9.99 price always ends up as some other number after tax. Also, people are often buying more than one item, which means that a transaction total will often not end in a 9.)
This only applies to cash transactions
If you are using electronic payments, you shouldn't experience rounding at all. So, if you are concerned about the prices, you can stick with electronic payment methods.
Inflation has caused this before
You know how we used to have half-pennies? Those made sense at one time, but if we still had half-pennies now, we could all agree that would be rather silly.
Half-pennies got phased out back in 1857, and we just rounded numbers to make prices work with the whole penny.
In the same way, modern pennies are not very useful; prices of everything are just too high for the penny to make sense.
Other countries have already done this
Canada stopped making their penny back in 2013, and other countries have also discontinued their lower-denomination coins before. I am not an expert in the details of the effects of this change, but I am assuming that if there had been major consequences, we would have heard about it.
I tried doing some googling, especially about Canada, and could not find any cause for concern.
To sum up, I'm not personally worried because:
- rounding may cost us very little
- there's a pretty good precedent for this type of thing
- most of us can just choose electronic payments
Concerns for others
The cessation of penny production will be fine for me personally. But what about concerns for others?
If it does turn out that price rounding will err on the side of going up, it will have a disproportionate effect on people who rely on cash for payments, which includes populations such as those who are unhoused and/or don't have bank accounts. It's a lot harder to use electronic payment methods when you don't have a bank account.
I have also seen concerns that people will give less to charities because they won't have random coins in their bags to toss in donation buckets. Still, given how few people actually carry cash and coins these days (me included!), I am a little skeptical that this will be significant.
Many people, especially those younger than me, don't even carry credit cards with them; they have everything loaded on their phones.
For these people, the demise of the penny has no effect on their cash-carrying habits; they were living the cashless life before!
(To wit, the Salvation Army already added cashless options because most modern shoppers weren't carrying coins to donate to the red buckets. And this was before the penny got canceled.)
Also, people who do carry coins will still have nickels, dimes, and quarters with them, and those can be tossed into charity coin buckets.
All that said, since penny production is already over, it's not as though we can change this.
So, if the penny issue is weighing on us, the best thing we can do is to make a point of helping those around us.
A penny for your thoughts?*
(I couldn't resist!)
What do you think about the cessation of penny production? And Canadians, I'd love to hear how it's gone for you!
P.S. It's funny to think about this and all the other phrases in our language that will be outdated...things like:
- penny-pincher
- counting your pennies
- giving your two cents' worth
- "a penny saved is a penny earned"
- an item "costing a pretty penny"
- "worth every penny"
I am not American or Canadian, but from what I've read, concerns are that there was little to no warning about this. Canada phased out the penny more slowly so that citizens could prepare for the change (no pun intended). This article is a good summary of the issues:
https://theconversation.com/who-wins-and-who-loses-as-the-us-retires-the-penny-267380
I currently live in a very digital based society, and very few people carry cash. It's accepted in stores and there is advice from the government to keep cash at home, but it's only 'easier' to pay by card or mobile pay (a Danish app for payments) if you have access to a bank account. It's a lot harder if you are an immigrant or facing homelessness. By comparison, Germany is incredibly cash-centred, and much fewer places take card payments. That was frustrating when I visited but it also seemed more fair, so to speak. I do wish they had more ATMs though!
All this to say is that in general, there should always be an actual option of cash or card. The penny is a very small and perhaps 'pointless' coin, but it is needed, at least for now, for those who have to pay with cash and/or are budgeting as tightly as possible.
@Sophie in Denmark, I missed part of a sentence - I meant to add that in general it's harder to pay with cash in Denmark because everyone says it's 'easier' not to. But it's only easier if you can pay with card or mobile pay in the first place! If you lose your card or have a phone problem, then it's a lot less easy!
@Sophie in Denmark, One last thought - I know this is about pennies but an argument I have for cash in general is that I think it can be an issue for everyone's payments to be digital, because a) it means less privacy and b) it causes chaos if there's a digital fault. A train of thought because this move will mean less people pay with coins.
@Sophie in Denmark, while it may have been enacted quickly, the idea of dropping penny production has been talked about as an inevitablity for quite a few years. So people in general were not surprised by it.
@Denise, It seems that it was frustrating for retailers because they weren't given information on how to proceed:
https://www.politico.com/news/2025/11/12/us-mint-to-strike-last-penny-as-trumps-phaseout-rattles-retailers-00647445
@Sophie in Denmark, I travel and stay quite a bit in the Nordic countries, and one frustration I have with mobile pay is that it stopped working after I moved away and no longer had a permanent address in the region.
Many arts & crafts fair sellers use mobile pay only, so unfortunately I can't support them when visiting. I also can't easily transfer money to family or friends, but have to do a bank transfer.
In Denmark, I have also found that my U.S. credit card doesn't work in the central railway station ticket kiosks. I downloaded the DSB app which made life much easier.
@Kristina M., It's frustrating! I usually bring cash to those fairs. I've helped many a tourist at the railway kiosk!
@Sophie in Denmark, And then there is the problem when your card or cards are lost or stolen and you are waiting for replacements. What do you do then if you have to pay in person, and sometimes even online as you don't have a new number and your old card is immediately axxed when you report it lost or stolen. You can go a week or longer with no access to cash from your bank accounts and/or credit cards. Cash should always be an option.
@Irena, Yep. Last year I managed to lose two bank cards (long story) and it took a long time for new ones to be delivered - thank goodness I had cash for an emergency like that!
@Sophie in Denmark, for those us who were taught to balance to the penny, the loss of the one-cent piece will be a source of frustration.
@Sophie in Denmark, thanks for helping tourists. many years ago, i was traveling in switzerland and no one helped me at the kiosk. on the same trip a man on his bike in amsterdam, rode a few blocks down the road to be sure he was giving me the right directions.
My sister lives in Canada, and she noticed no problem with the end of the penny. She did find the rounding balanced out.
I had two places that already won't accept or return pennies now. And at a different store, I got extra cash as my return was 2.18 so they gave me 2.20. I think for people who use cash, it will balance out.
I myself tended to leave pennies behind - leave a penny, take a penny mentality!- so it won't affect me. I'd love to see nickels go too.
@mbmom11, I got to visit New Zealand about a decade ago, where they also don't have pennies, and I used to use more cash back then. I jealously collected receipts to keep track of the rounding, but quickly realized that I was not being shortchanged and it did balance out.
First, I agree that there shouldn't be that much cause for worry on most counts. But I share the concern for those who don't have access to digital banking.
And second, I smiled ruefully at Kristen's list of soon-to-be-outdated figures of speech. I'm already a walking repository of obsolete language, such as "You sound like a broken record" and "Dial that telephone!"
@A. Marie, We have the saying in England 'look after the pennies and the pounds will take care of themselves' and 'penny wise, pound foolish' (which seems to contradict the first phrase). If we phase out the penny I wonder if the sayings will stay!
@A. Marie, don’t forget “hang up the phone!”
@A. Marie,
I still use those!
I am pretty sure those expressions will keep turning up (like a bad penny)
@JNL, I guess all pennies are now "bad"? We'll have to work on a substitute!
Pennies mattering is also a regional concern, not just country. We moved from one of our state's largest cities to a rural community an hour away--that hour makes a bigger difference than you think! Many small businesses don't even have a card option (or you have to hit a minimum to use a card) because the fees are too high vs. their overhead. I've gone through more paper checks here in four years than I did in the fourteen years at our previous residence because I don't trust myself to carry cash. I honestly wonder if the lack of pennies might mark a comeback for paper checks on a wider scale.
Side-note: Pennies are sometimes used instead of tile in DIY projects because they're cheaper than tile. I've never used them this way, myself, but the results do look neat/tempting!
@N, I’m still surprised at how many people use cheques in the USA. They are almost obsolete here in Canada since most will use a direct debt card instead of cash or credit card. Email transfers are popular and have also revolutionized how money moves from person to person. Maybe it’s because we have a more regulated banking system.
@Rachel, When I went to the US I couldn't believe there was no chip and pin for card payments!
@Sophie in Denmark, now there are chips and pins for card payments. But there are still problems of theives taking out the chip reader (especially at gas station pumps) and stealing pins and card numbers. And I always cover the pin pad when I enter my pin as people have even used cameras to steal pins! It is absolutely crazy!
@Maureen, I wasn't able to use chip and pin to pay by card in restaurants. I don't know if it's become more available since (this was in NYC just under two years ago).
@Rachel, Small vendors and shops in the US are charging a fee for using a credit card, usually 3-4% of your total, They are not charging a fee for accepting a check.
@N, What you might "save" on tile, you'll spend in time. As a seasoned house remodeler, I'd never recommend pennies instead of tiles. Especially for frugal folks like all of us, finding a deal on tile is much more cost effective.
Pro tip: we never make design decisions first. We look to see what we can source reasonably and plan our design accordingly. Example: We design our kitchens by asking the slab yard what they have available, not by the samples in the shop. We save a ton of money that way, and are always pleased with the results.
@Sophie in Denmark, there are chips everywhere in nyc now.
@Rachel, i am 79 and the digital community forget that there are many of us who are not up to date on changes!
A friend of mine asked if we are still now following the edict of "Find a penny, pick it up, and all the day you'll have good luck," (remembering that some people only do it if the penny is headsup). I say yes because a habit of 50 years is hard to break! 😉
@Karen A., The saying will still work with modification-
Find a nickel, pick it up, and all the day you’ll have good luck!
Canadian here, I have not had any issue with the pennies demise up here. I mostly pay with card, debt or credit so the price stays the same as stated with no rounding up or down. A penny or two more never is a deciding factor if I chose to purchase an item or not while using cash. In a way we in Canada have switched out the pennies for higher denominations of coins with the Loonie and Toonie. (One and two dollar coins) It certainly make me more apt to pick up a found coin. ?
Great research, thank you! It doesn't concern me one bit, for all the reasons you mentioned. Maybe now I can convince my mother to cash in her absolutely enormous jug of pennies that have been declining in value for decades. Whenever I'm there my frugal mind sighs over the interest she could be earning.
@Martha C, I'm trying to do the same with NDN1 (my next-door neighbor with cognitive issues) and her enormous stash. Double sigh.
@Martha C, I know so many people who have these jugs of pennies! If everyone turned these in, maybe we wouldn't need to mint any pennies.
@Bee, My parents have a tin filled with pennies and 2p coins. When we were children, my sister and I would take coins to add to our ice cream money, and when it started to get empty there was a note taped to the bottom of the tin which said 'all gone'! I imagine it's pretty full these days!
@Martha C, @A.Marie, @Bee if you help anyone go through their penny stash, be aware that "wheat pennies" are actually worth more than newer pennies. If you pull those out, most coin dealers offer double or triple their value.
@Bobi,
My sister just sold some coins and gold jewelry, and included a penny that was worth much more than face value because it was old enough to contain copper. I don’t remember the year the composition changed (1980’s?), but you can tell the difference if it weighs 3 g or 2.5g. Some people may be sitting on a copper mine. ?
@Bobi, Actually all pennies dated 1982 and older are solid copper and are worth more than face value.
@Martha C, A.Marie and Bee,
I've read where the government is asking people who have stashes of pennies to please start spending them, or turn them in to the bank, so they can be in circulation. They say we'll still use pennies for a few more years, but there is a penny shortage and they need all those coins to be out there in use.
I would cash in most of the pennies, I think, because the day may come when banks and stores won't take them any more. Then I'd be stuck with worthless coins.
@Ruth, Dee and Bobi,
Thanks for the info! I will definitely start winnowing out the older pennies. Then I'll take them to the "I Sold Gold and I Like Mike!" gold buying business. It runs these obnoxious TV commercials and constantly advertises on all the local channels morning, noon and night. Maybe I can make a small profit.
@Fru-gal Lisa and everyone else, here's an update on NDN1's penny hoard. I rolled up 100 pennies for her recently and gave her a dollar bill (but there's a LOT more to roll/otherwise get rid of). I just offered the two rolls to the cashier at Petco when I was stocking up on canned Tastefuls food for Mrs. Betty (there's a sale on). The cashier almost kissed me!
@Bobi, DH was a coin collector in his youth, so he had me looking for the wheat pennies almost from the start of our relationship. However, NDN1, like the magpie she is, favors the bright shiny ones.
@Fru-gal Lisa, I sold a bunch of gold jewelry and found a locally owned jeweler paid more per ounce than the gold buying business. It also depends on the purity of the gold and most of mine was gold nuggets, so that may have made the difference. But I would encourage folks to look around and also to go in knowing what gold is selling for on the day you decide to sell. That is not what you will get, but it gives you an idea of what is a good deal.
@A. Marie, my son an di love going to coinstar. they don't charge any fees for your first time using their services. and i believe they don't charge a fee if you opt for gift cards. my son has a grand ole time searching for coins left behind at the coinstar!!!
@Sophie in Denmark, i kept pennies in a ginormous liquor bottle that was in a liquor store display. it was from beefeater gin. don't remember how i got rid of those coins. probably my evil step-mother threw them out.
@A. Marie, @Martha C - NOOO sit on those pennies.
Thank you for this. I was concerned about the impact. It does impact those self-checkout machines though. My daughter works for a grocery chain and they don't work without pennies. So there is a cost to the system for the lack of ability to consistently get pennies, which the stores are beginning to see already (probably a bit of penny hoarding going on in addition to the lost production).
@Lynn K,
The store will just stop accepting them. That's what several stores around here do. One store even posted that their bank won't accept pennies anymore.
A grocery store in our area who uses the machine for cash, even the manned registers recently offered to double the amount of pennies brought in, in a store gift card. Up to $200. It was a one day event, and they weighed them, my son said it was a quick process and he took in a huge jar.
@Lynn K, This is interesting. I wondered how self checkouts would be affected. I've actually been shortchanged a few times by self checkouts (both coins and bills.) The attendant has always corrected the problem but never an explanation as to the problem.
@Lynn K, Perhaps that is why many self checkout machines locally only take cards. I know penny shortages have been a thing here at businesses.
Ha I'm Australian and we phased out 1c and 2c in the 90's but absolutely did not retire the "two cents worth" phrase ... or any of the others even though we didn't have the denominations here.
Yesterday I was with a friend at Michael's. Her purchase was $4.06 and the register automatically rounded to $.95 change when she chose to pay with cash. I had not seen that before as I mostly shop at grocery stores and generally charge my purchases. It seems stores are ready to deal with the change.
@K D, Apparently not in my area. 😉 My local Dollar Tree stores have signs alerting customers to have correct change ready or their total may be rounded up. 🙁
So I am Canadian, and by utter coincidence, I know the economist who was responsible for this change in Canada!
He was a friend and colleague of my husband, and it was very much his life’s work. As a young(ish) economist, he discovered that it was both more expensive to manufacture pennies than they were worth AND people had a tendency to hoard them at home (like in a jar on the dresser), thus taking them out of circulation. A lose-lose situation.
He then spent the next twenty-five YEARS of his career trying to convince policymakers and legislators to get rid of the penny. The story has a happy ending: all of that work eventually did pay off (pun intended) and he got to see the fruits of his labour in 2012.
Honestly, it went pretty smoothly and I don’t think any us of us notice anymore 🙂 It’s one of those things that makes a small difference on the micro level and apparently a big difference on the macro!
@Kate, that's interesting! I'm American, but I've lived in Canada for the last 14 years, so I was here for the transition. I love not having pennies anymore. I think it's much simpler as a consumer.
@Kate, I'm not really opposed to getting rid of pennies, my biggest concern is the fact that the U.S. has no real plan! If only we could emulate our Northern friends.
@Kate, that is so neat! As a fellow Canadian I had largely forgotten about this change until this post!
@Bobi,
In the U.S., the term "government efficiency" is an oxymoron. They never have a real good plan for anything!
@Fru-gal Lisa, I think this is inaccurate and only adds to people taking extreme positions. The fact is that lot of government systems work well, but unfortunately we have a tendency to see and remember those parts that do not.
It wasn't the slightest blip on my radar here in Canada. And while they do round up or down if you're paying with cash, when I pay with my debit or credit (which is most of the time), I pay the exact amount. I think it would have had a much bigger impact many years ago in a more cash-based society.
We found a penny on the ground a few weeks ago and that felt like a blast from the past. I HATE change so have never missed pennies.
When I was a kid, each summer our Vacation Bible School would raise money by doing a penny drive. There would be BUCKETS full of pennies by the end of the week and it definitely added up. But I feel like the world is so different now and we don't raise money in the same way. So much happens digitally. Which I have mixed feelings about. But losing the penny has been no problemo!
I’m not a big commenter but wanted to share my thoughts on this. We personally only use cash for most retail purchases for a lot of reasons. I will list a couple here…..
-accountability
-cheaper, if you don’t have cash you don’t get it
I know this wouldn’t work for every one but it does for us. I have already experienced issues at local places because they don’t want to round up or down yet. I guess time will tell.
Also $85 extra a year (2 people) will make a huge impact on our finances.
@Karen Bowman, my elder mother & I also use cash for several reasons and 80 year is also alot to us
I was actually thinking about those frequent phrases we use which include “penny” or “pennie’s” and how puzzled future generations may be upon hearing
or reading in literature.
I think you did a very thorough job covering this topic of the disappearing penny. Thanks for the research!
I suppose that the penny has outlived its usefulness, but I am having difficulty understanding how we will adapt. I personally like to use cash even if electronic payment are more convenient.
Although rounding up and rounding down are options, I don't think $42.60 per person per year that it will cost the cash-user is negligible. When calculated out over 20 year period, my family of two will spend an additional $1700 on nothingness. What if that money was saved or invested?
Although electronic payments have become the norm, they are a large business expense. Fees typically run between 3 - 5%. This expense is passed on to the consumer. I wonder how much that is costing us per year?
@Bee, I agree that $42.60pp is not negligible, particularly for low income folks who primarily rely on cash. I wonder about the cc fees as well; will more people start passing on the fees? I think current evidence suggests this will happen.
@Bobi, i believe that these fees are already being passed on to the customer in the price of the goods and services that we purchase. I am a small business owner. When 90% of the people who purchased from me started paying with debit or credit, I had to increase my prices by about 3 1/2% to cover all the additional fees that I was being charged for these purchases. At first, I tried to charge a 3% convenience fee for those who use credit cards, but some of my customers pushed back on this. Now I offer a cash discount instead. The credit card processors and the banks are the only ones making any money on this deal. Of course it also makes it easier to track money and audit finances.
When I write my purchases in my checkbook, I always round up or down by the nickle. Then at the end of the month when I balance my checkbook, there is usually a $2-$3 difference in my favor. But I am able to add and subtract much faster because of the nickle rounding which makes looking at my checkbook a tad bit easier.
Any idea what is happening with the old pennies? Throwing them away seems like an enormous waste of metal sent to landfills. I know you can use pennies for random projects, but that’s not a realistic solution for the masses.
@JenRR, I would love to know this! Seems as if some enterprising individuals would pay for those jars of pennies (but not much) and then sort out the ones which are made of copper. Then they’d do whatever it is to convert it to a useable form. For years now, people have stolen copper wire from wind machines because the price was high. (Wind machines keep oranges on the trees from freezing.)
I’m fine with it. It costs an unreasonable amount to produce it. We will still have many in circulation for awhile, and so much of our transactions these days are cashless
I know this may sound crass but I could not possibly care less about retailers having to round the penny. There is no shortage of pennies; people just hoard them and stuff. I know for a fact we have tons of them in jars and stuff around the house now.
I think the Inflation Monster is a bigger problem than not minting a coin any more.
@Battra92, the Inflation Monster is appropriately named. It is why I once again count every penny. My cost of living is up 35%+ since 2020 with a reduction in life style.
@Battra92, what will you do with those pennies now?
@Bee, oh wow, serious ouch factor in those numbers for you! If we lived closer, I’d sneak $5 bills into your jacket pockets or glove compartment when you weren’t looking.
@Bee, yeah I wish I could claim credit for naming it as such but that credit goes to the Tuttle Twins.
And yeah, that really sucks. I've been lucky in my housing and transport costs remaining mostly stable.
@Central Calif. Artist Jana, in general I rarely see them. Most coins go in jars but a lot of the times I use cash are with small vendors and garage sales and the like where everything tends to be rounded up to the next dollar.
I should probably cash in all of my coins at some point. I have $20 in quarters all rolled and ready to go.
@Central Calif. Artist Jana, we have adjusted. The hyper growth in Florida- especially the county in which I live - has added to higher prices in goods and services. Property and casualty rates are probably the most noticeable with increases of about 450%
A few months ago I was shopping and the cashier asked if I wanted my $.01 change back. I said, "A penny saved is a penny earned" and he looked at me like I was crazy. LOL
I always get out cash for my groceries/household expenses. I'm not really worried about the change issue. In fact, it has already worked in my favor by the cashier rounding up and giving me more change than due. Also, pennies will still be around for quite a while. They just aren't making new ones. It's not like they are obsolete as payment.
My daughter works at Hobby Lobby and says that most people pay with card. She has a lot of people who forget they can't pay with their phone at Hobby Lobby, and have to run out to the car to get a credit card.
I don’t believe this will affect my life in any way. Although I have a jar full of Pennies, and I am wondering if I should cash them in or save them? I wonder what will happen to the Pennies, will they be melted and used for something else? A very riveting topic for a Monday morning discussion.
(Frugal) Canadian here! Looking back, it felt like merely a blip on my radar. The switch for retailers was seamless (and that was over 10 years ago, I'd imagine retailers are even more equipped now!). I use both cash and card regularly, and it has never felt inconvenient or unfair. In fact, I don't miss carrying fewer coins!
On a currency related issue-- I love going to the US and getting one-dollar bills as change! We haven't had them in Canada since the late 80s 🙂
If everyone with containers of pennies in their house took them to the bank and cashed them in, we'd have pennies in circulation for ages to come.
Is no one worried about what the cool kids will put in their penny loafers? And what about those machines that create "souvenir pennies" by mashing a penny and stamping it with a design? 🙂
I think the sayings with pennies will hang on a good while, the same as "broken record" and "dial the phone number."
I don't like the idea that rounding up could cost us $47 a year. To a person in financial straits, that is too much. But since I purchase with a card much more than cash, it probably won't affect me personally.
I like pennies. A shiny copper penny is a pretty little thing to me. I will hate to see them go, although I'm not really worried about losing them, except for the effect on people who need to use cash.
@JD, the first thing I thought of was those penny smashing machines! I'm guessing they will retrofit to accommodate nickels.
@JD, I love those penny smashing machines. I have quite a collection of them. Totally forgot about them.
http://locations.pennycollector.com/AreaList.aspx
@JD, I live in Australia, where we phased out pennies in 1964 (changed to 1 cent coins, which were phased out in 1992). You can still find penny squishing machines at some tourist spots!
https://nosense.com.au/locations/
I'm not concerned; other countries have done it with little impact. I would rather my tax dollars go to something more useful than minting pennies.
I did enjoy the NYT "obituary" for the penny :-)
Thanks for this! It's interesting to hear the thoughts of our Canadian neighbors. It would've been nice if we'd had a plan for this before being thrust into it. My biggest concern is probably unintended consequences and there are always unintended consequences. 🙂
Canadian, here. The cessation of the penny years ago has not affected my life in any noticeable way.
No panic necessary!
All I can think about with the phasing out of the penny is the penny flattening souvenir machines - how much longer will we have those! I hardly use cash, much less coins anymore but I see how much fun kids have flattening pennies and I just know that those are going to go the way of the Nickelodeon.
Our 1 cent eurocoins are no longer being minted in NL, for the same reason. Prices are still the same and will be rounded off if you pay electronically (bank cards, credit card, phone).
A grocery store in my area had a penny buy back program last Sunday. For every amount of pennies you brought in, they gave you a gift card for the store for double what you gave them up to 200.00. I was happy to earn a 52.00 gift card for cash I had laying around in change jars anyway, and by the size of the line there were many people who felt the same.
The best part for me was hearing how some people were going to use the money to bless others.
As a Canadian, we experienced this a number of years ago. It has really not been an issue. The only problem for me is that, as a teacher, I use money contexts as I teach math to elementary students. Without the penny it is harder to relate 100ths. I had kept a collection of pennies before they went out of circulation, so I still have something to teach the concept of 1 cent and 100ths. They still need to know this concept because electronic payments still go to this place value. I recommend elementary teachers keep a stash for future use for teaching.
I work as a cashier. Sometimes, my customers comment on the fact that the penny is on its way out. When this happens, usually when I'm giving them a penny in change, I tell them, "This will be a collector's item someday," and we laugh about it.
If they have little kids with them, I try to give out shiny pennies in change and tell them this is for their children's piggy banks. I assume small children still have piggy banks, but in today's world, who knows? I'm seeing more and more parents let their youngsters take out the credit card from the card reader, so I guess they figure their kids won't need to bother with coins and currency all that much.
The problems seem to be around that this government action was done quickly and without giving the people who actually use pennies time to plan. I am working from memory of a recent news article I don't have in front of me. Different states have different rules about rounding up or down, whether it can benefit the consumer or the business. SNAP payments also got involved in this, something about if cash customers were getting totals rounded up or down, the SNAP card user was or wasn't getting a benefit and they are supposed to be treated like anyone else.
Jerry Seinfeld had a bit about the "Have a penny- Leave a penny" dishes in stores and restaurants. What if the person who invented that got a royalty off each transaction?
Financially, I think no pennies will be fine. Eventually, we’ll all be penniless. Ha! My reaction is more emotional as I often think of a penny as a “penny from heaven.” I was with my dearest friend when she passed. We lived about 4 hours apart at that point in our 30 year friendship and would often meet in a town 2 hours for each of us. On my way home I stopped to use the restroom where we always met up. As I walked towards the restroom I found a brand new penny on the sidewalk. We were/are such strong faithful women. That penny meant the world to me. I still have it and it is a poignant reminder of her death and our friendship.
Several thoughts:
1. Those little dishes at cash registers where people toss extra pennies or take one will become obsolete.
2. An English friend used the expression “spend a penny” when she was headed to the restroom.
3. Never heard of a half-penny before!
4. What will become of those penny-squisher machines in museums? (I think you spend a quarter or maybe even a dollar to have a penny [supplied by you] stamped with a design)
5. Will we be able to convert our jars full of pennies into green pieces of paper with dead presidents’ faces on them any more?? Better get moving on that!
I feel it will impact me some as I generally use cash for the bulk of my monetary interactions. I’ll likely continue with cash, and take an inventory of amount rounding up/down and which stores do a cash discount or if it goes away. And evaluate in several months if it is still worth it or not.
I grew up in a military family and in the 80s we lived overseas. Our bases did not use pennies because of the cost of getting them to the base. Everything was rounded up or down. Even though most people used primarily cash (or maybe checks) for purchases on base,I dont' recall any issues ever. My sibling and I were 10 and 13 and had no issues with this change as well. It just was not a big deal. It was strange four years later to move back to the US and use pennies again. I'm not worried at all about the change. I think it makes sense overall.
We were in Hong Kong for 9 years, and the smallest denomination is a 10 cent coin. There is also no sales tax, so items were priced accordingly. We also go over to Canada quite a bit (it's only 40 miles away) and I've never even thought about it, honestly. I don't see it being an issue except for those who choose to make it a point of contention.
I agree with all the points you made.
As for charities, my philosophy has always been to make intentional choices about the charities I give to. I have never "rounded up to support job training" of tossed coins in a red kettle- I make substantial donations on the SA website. Grocery stores around here also have monthly charities that they ask customers to donate to. I want to be the one choosing where my money goes. My 'Grocery Budget' is for food. Like I just said my 'Charity Budget' is reserved for charities I share philosophies with.
As for the penny cliches, they will remain as have others from the past that refer to things we don't have modern day associations with 'tan your hide', 'tar & feather', etc.
Another Canadian here. Back when the penny was phased out everyone was using cash way more as a form of payment then we are now. The phaseout out was seamless. Your wallets got lighter too, mind you our loonies and toonies are heavier and make up for that. I 99% of the time use my credit card to make purchases (which is free to me and I pay off monthly) and it gives me 2% cash back to add to my bank account. It’s a win-win. Feels like I’m only ever paying 98% of whatever I’m buying. I’m well aware that the credit card cost to the store is included in the price but that’s there regardless of form of payment. Rarely do I come across a store offering cash discounts.
Ever since I heard they were going to do away with the penny, my first thought was that 99 cent will be round up to the next dollar so, you will be paying more taxes on it which means it's going to cost you a lot more than the penny they're rounding up. I understand the rationale about it costing more to make than it's actually worth. But, being of that older generation, I do still stop and pick pennys up when I see them on the pavement, because I believe I am a penny richer when I do so. That's not to say that I don't also pick up nickels, dimes or, quarters if I happen to run across them. To me, that's what I refer to as "found money". A little surprise in your life and I believe most people would see it that way. It's like getting a present from someone you don't know. Anything I find goes into a Mason jar and when I have enough to take to the bank, I deposit it into a high yield savings account. Now you all have to admit penny pincher is gonna sound really stupid as nickel pincher. It just does not roll off the tongue as well. Considering that trillionaire that decided he wanted to play around in politics earlier this year, it was his suggestion to do this and we know how all of his suggestions went when it came to the little people like us who work for a living.
Blessings to all.
The Richmond Fed article used 6.06 million increased cost for 258.3 million consumers annually.
Average that out $/consumer for a year, and you get 0.023 $ per consumer per year. Your estimate seems way too big.
Hahahaha oh my gosh, I divided that backwards!!!
In New Zealand our smallest coin is 10 cents, and we just round up it down to the nearest 10c. I think it just evens out in the end. Sometimes you pay a few cents more, sometimes a few cents less. And like you said if you pay electronically, you pay the exact amount (except these days we have credit card surcharges which add up to a lot more than rounding up or down to the nearest 10 cents -- usually around 2% of your purchase!). Is this a thing in the US too?
@Franci, they usually give you a 2% or 3% discount for using cash.
@Franci, I notice the credit surcharge or cash discount most at small businesses, like my hair salon, local family-owned pizza shop, vendors at craft fairs, etc. In my area, it's trending now toward a cash discount as it seems more like a reward for using cash than a penalty for using a card, even though the result is the same. Larger stores or chains almost never have these charges or discounts in my experience. I lean toward using my card (which gives me rewards/cash back) at bigger stores and try to use cash at smaller businesses.
My grocery store gave me a nickel back versus the 3 cents due, so it’s already working in my favor.
I think stores should favor the customer, because even if they give a nickel when only 1 cent is due, it’s still cheaper than credit card fees for them.
Australia did something similar; we used to have 1c and 2c coins. These were discontinued and prices were round up and down to the nearest 5c. The rounding evened out and you didn’t end up with a super heavy purse from coins.
Canadian here…it was a non event! I have worked in retail for 30 odd years, and we had no issues and no complaints at the busy grocery store where I work. You will all be fine!
But now when I do find a penny on the ground or a random spot, I keep them in a box at home as there are few to be found.
We have no one cent (centime) coins here in Switzerland, and the five cent coins may be next to go. This is still a highly cash-based society and the rounding does not seem to be a problem.
On another note, in general the Swiss seem comfortable with much larger amounts of cash and larger bills. It took some time to get used to routinely getting CHF 100 or 200 bills from ATMs. Our work cafeteria recently announced that it will no longer accept CHF 2000 bills.
i am one of those crazy old people who pay cash for everything. It bothers me more that many stores don't accept cash than that the penny is going bye bye, when i was five i rode the school bus an hour and a half each way. an older girl gave me 20 pennies. i remember thinking i was rich and that they couldn't fit in my two hands. she also taught me how to tie my shoes.
i always try to have four pennies with me so that i don't get pennies back in change. i hate when i forget to do that. so nope the end of the penny does not bother me at all. well, maybe a tad.
my father and his younger sister used to go over their restaurant checks with a fine tooth comb. it drove me crazy. i never check the bill. it is either in my favor or theirs and it evens out in the wash.
my mother in law goes over the grocery receipt with a fine tooth comb and that drive my hubby's twin insane. hubby doesn't go with her but i do and it is not fun.
Canadian! The most confusion this makes is in elementary school math worksheets and standardized tests (and most have sorted themselves out). We’ve been fine. And frankly, there’s bigger fish to fry in the world right now. (Amanda, from Yellowknife)
As a Canadian, the biggest issue, and this may just be due to my job in IT, was getting cash registers to know how to round cash sales properly and account for the missing or added penny amounts when showing change to give back to customers. Beyond that, there was and continues to be no issues around not having them. It's just less change you have to carry around in your wallet, and considering we have loonies and twonies to worry about, less is good.
In spite of what the professor said about it will all balance out - I heard last week, it will be more of a loss for us bc it will add up but not for us, who will round it out! idk
As a Canadian, I do not miss the penny at all. With rounding it all comes out in the wash. I rarely use cash for anything so I barely notice that the penny no longer exists.
As a canadian I can assure you that it didn't make any difference, really.