With more than 130 billion coins in circulation, there shouldnt be a shortage right away
of ConsumerAffairs-
The U.S. Mint has officially ceased production of the one-cent coin, ending more than 160 years of penny manufacturing.
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Rising costs and declining consumer use drove the historic decision, marking the most significant change to U.S. coinage in decades.
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Americans are now encouraged to redeem, donate, or recycle their pennies, as the coins will remain legal tender indefinitely.
The last penny, bearing the profile of the 16th U.S. president, was struck this week at the U.S. Mint in Philadelphia. No more pennies will be produced, posing a quandary for both consumers and businesses.
Earlier this year, President Trump ordered an end to penny production, noting that it cost more than a penny to produce one. Thats been the case for several years.
With each coin costing more than two cents to mint and distribute, lawmakers and Treasury analysts argued that the copper-plated coin no longer made economic sense.
Meanwhile, digital payments, tap-to-pay systems, and point-of-sale rounding practices in other countries demonstrated that daily commerce could function smoothly without the smallest denomination coin. Canada, Australia, and New Zealand eliminated their own pennies long ago with minimal friction, examples cited heavily in recent congressional hearings.
The U.S. Mint will continue to distribute existing penny inventory until supplies naturally diminish, but no new coins will enter circulation.
Will prices go up?
Economists say consumers shouldnt expect noticeable price increases. Retailers may choose to:
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Adopt cash roundingrounding totals to the nearest nickel when paying with cash only
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Keep exact prices for electronic payments, which already allow precise transactions.
Studies from other nations show that rounding has little to no inflationary effect.
Different businesses may have different policies. McDonalds told CBS News that in some locations where pennies are unavailable, when a customer pays cash, the total will be rounded up or down to the nearest nickel.
For example, if the total comes to $10.22, the customer will be charged $10.20. However, if the total is $10.23, the customer will be charged $10.25.
So, what do you do with the pennies in a jar on a shelf in the closet? Its estimated that there are more than 130 billion pennies currently in circulation. If some of them are yours, here are some options:
1. Spend them
Pennies will remain legal for all purchases. While some businesses may choose not to accept large quantities, most will still honor them.
2. Redeem them at banks
Banks will continue to accept rolled pennies indefinitely. Many financial institutions already allow customers to deposit unrolled coins through lobby coin machines.
3. Donate pennies to charity
Nonprofits often welcome coin donations, and some have already launched Last Penny campaigns to capitalize on the moment. Schools and youth groups may do the same.
4. Trade them in at coin kiosks
Coin-sorting machines in supermarkets typically accept pennies, though a small processing fee may apply unless you redeem for store credit.
5. Keep a few
While modern pennies wont yield retirement money, early copper issues or uncirculated rolls could see increased collector attention over time.
A symbolic farewell
The end of penny production is both economic and emotional. For generations, the small coin has carried sentimental value, from childhood piggy banks to the tradition of pennies for luck.
But as the countrys payment habits evolve, the beloved one-cent coin is moving closer to history
Consumers now have ample time to clear out their change jars, support charities, and perhaps preserve a penny or two as a keepsake of an era thats finally come to a close.
Posted: 2025-11-13 14:24:54
