PHILADELPHIA (AP) — Did you know that back in 1793, a penny could buy you a biscuit, a candle, or a piece of candy? Nowadays, pennies sit in drawers or jars, often seen as lucky charms rather than coins for spending.
But their days are numbered. The U.S. Mint in Philadelphia will strike its final circulating penny soon. President Trump has decided to end the 1-cent coin because it costs almost 4 cents to make each one, rendering it less valuable than its face value.
Since the Coinage Act passed in 1792, the U.S. Mint has produced billions of pennies. However, with the rise of digital transactions, many people don’t find them necessary anymore.
In a February online post, Trump highlighted how wasteful it is to continue minting pennies. “For far too long, the United States has minted pennies which literally cost us more than 2 cents,” he wrote.
Despite this, many still cherish their memories of pennies. Some retailers have expressed concern about the sudden phase-out. With supplies running low, businesses have had to adapt. Some rounded prices down, while others encouraged customers to bring exact change. The more inventive retailers offered free drinks in exchange for handfuls of pennies.
Jeff Lenard from the National Association of Convenience Stores remarked, “We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go.” Banks have also started rationing pennies, creating a curious situation where a surplus of coins is met with limited availability.
On the financial side, U.S. Treasury Secretary Scott Bessent announced that ceasing penny production could save the government $56 million annually. Interestingly, while the penny’s production cost exceeds its value, the nickel is even more costly to produce at nearly 14 cents. In contrast, dimes cost around 6 cents to make, and quarters almost 15 cents.
As people transition away from using pennies, it’s clear that the 1-cent coin is fading into history. What will replace it? Only time will tell. For further insights into the currency landscape, you can check the U.S. Mint’s official site.
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