After 233 years of jingling in pockets and vanishing into couch cushions, the U.S. penny is officially being retired. The U.S. Mint is halting production of the one-cent coin, marking the end of an era for America’s smallest unit of currency. While this move might feel nostalgic to some, the decision is rooted in hard economics—and it’s long overdue.
Why the U.S. Is Retiring the Penny
The penny has cost more to produce than it’s worth for decades. In 2024, each penny cost 3.69 cents to mint, which added up to $85 million in losses for the U.S. Mint—just to make a coin valued at one cent. That’s not just inefficient—it’s fiscal insanity.
President Trump made it official with an executive order in early 2025, calling time on the penny’s long and expensive life. The final batch is being minted now, after which production will stop permanently.
What Happens Next?
If you’re still using cash, get ready to round. The U.S. is adopting a rounding system similar to what other countries have used for years:
Total Amount | Rounded To |
---|---|
$10.01–$10.02 | $10.00 |
$10.03–$10.04 | $10.05 |
$10.06–$10.07 | $10.05 |
$10.08–$10.09 | $10.10 |
Important: This rounding only applies to cash transactions. If you use cards, mobile payments, or digital wallets, you’ll still pay the exact amount.
This change is meant to streamline transactions and reduce the hassle of dealing with near-worthless coins. But some consumers are skeptical, worrying that businesses may round up more often than down—turning this cost-saving measure into a hidden price hike.
Other Countries Did It First—and Survived
The U.S. isn’t blazing a trail here. Countries like Canada (2013), Australia (1992), and New Zealand (1989) scrapped their one-cent coins years ago without economic collapse or consumer revolt.
These transitions were largely smooth, thanks to public education campaigns and modern payment systems that made cash less common. In fact, the U.S. is relatively late to the game.
What About Nickels?
Here’s the kicker: it also costs more than 8 cents to make a nickel. That’s another money-losing coin, and some economists are already whispering that it may be next on the chopping block.
So while the penny’s departure is headline news today, the nickel’s fate could soon follow.
A Brief History of Obsolete Change
The penny’s not the first U.S. coin to fade into history. From 1793 to 1857, the U.S. even had a half-cent coin—worth just 0.005 dollars. Back then, that could buy something. Today, you’d be lucky if it covered part of a sales tax.
And let’s not forget the failed dollar coin experiments: Eisenhower, Susan B. Anthony, Sacagawea, and the Presidential Dollar series all flopped. Americans love their paper bills and don’t want heavy coins jingling in their pockets.
Coin Collectors Are Scrambling
While most Americans won’t miss the penny, coin collectors are on high alert. The 2025 batch is already being hoarded, especially any coins with minting errors. Rare versions could fetch much more than face value in the coming years.
So if you come across a 2025 penny, don’t spend it. You might be holding onto a future collector’s item.
With the penny gone, the U.S. takes a step closer to modernizing its currency. In a digital-first world, it’s a logical move—but still, it’s the end of a small, shiny chapter in American history.
FAQs
Will pennies still be accepted in stores?
Yes. Existing pennies remain legal tender indefinitely. You can still use them, though most people probably won’t.
What happens if I pay cash and don’t want my purchase rounded?
Tough luck—rounding is mandatory for cash purchases only. To pay the exact amount, use a digital method like a debit card or mobile wallet.
Can I exchange my pennies at the bank?
Yes. Banks will continue accepting and exchanging pennies, though you may need to roll them first.