US Treasury Officially Retires the Penny: What This Means for Your Wallet

The U.S. is set to stop producing pennies next year, as confirmed by the Treasury Department. These small coins, circulating for over 200 years, are often seen as more trouble than they’re worth.

Former President Donald Trump pushed for an end to penny production, calling them "wasteful." This decision isn’t surprising, as there’s been a long-standing debate about their usefulness. In fact, the cost to make a penny has soared from 1.3 cents a decade ago to 3.69 cents today.

Elon Musk even chimed in on the topic earlier this year, highlighting the financial burden of minting these coins in a humorous post on social media.

The penny has a storied past, being one of the first coins minted in the U.S. back in 1793. However, the Mint estimates that stopping production could save taxpayers around $56 million annually. Critics argue that maintaining the penny wastes money and resources, while some believe it helps keep prices lower and supports fundraising efforts.

With the phase-out, businesses will have to round prices, making transactions a bit different. According to the Wall Street Journal, the Treasury confirmed it has placed its last order for penny blanks, and production will continue only until the existing inventory runs out.

Other countries have already moved on from similar coins. Canada eliminated its one cent coin in 2012, mainly due to the costs associated with minting it. Similarly, the UK stopped minting new pennies in 2024, reflecting a shift toward cashless transactions in today’s economy.

As cash usage declines, the relevance of such coins becomes questionable. In recent years, the UK has even experienced a complete halt in producing new 2p coins. While they’re not being scrapped, their future hangs in the balance alongside our changing relationship with cash.

For more in-depth information on this shift in coin production and its implications, you can check the U.S. Mint history and read about the UK’s approach toward currency here.

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