If you were to ask anyone under the age of 30, if they use pennies to purchase things, around 40% will say they have never used pennies when paying for something. The percentage of people who no longer use pennies will continue to increase; on May 22, 2025 the announcement was made that the United States penny was going to be retired. The U.S. Mint made the last order of penny blanks, which are expected to run out sometime in 2026. Beginning the shift to a cashless economy.
The U.S. penny was instituted in 1792 and has been in production until now. In the beginning, pennies were made mostly of copper with a small portion of the penny being made with zinc; however, around 1980 the switch was made to make pennies out of zinc with a small copper plating. This was due to the rising price of copper during that time. The cost of producing the penny continues to rise which drove the decision to discontinue the penny.
The penny costs almost four cents to produce, compared to the actual value of the coin; one cent. The value of the coin was not worth the extra cost of manufacturing. The U.S. Treasury claims $56 million is expected to be saved yearly by ending production of the penny. Other reasons for terminating the production of the coin include the penny’s economic inefficiency. The penny is no longer being used in the economy to its full ability. The economy has also shifted to a cashless economy with the majority of people paying with cards and online forms of payment rather than cash. The next question is, will you still be able to pay with pennies? The answer is yes. While paying with pennies is not the easiest or most efficient payment method, you will still be able to use coins for purchases; however, cash transactions now have more reason to round the price up to the nearest nickel or dime.
The Treasury found another benefit of retiring the penny; the environmental aspect. The materials used to make pennies like zinc and copper connect to a negative pollution from mining. While stopping the production of the penny may only have a small positive impact on the environment, anything is helpful to improving the Earth’s state.
Along with the positive impacts of withdrawing the penny from production they come with some negatives. One drawback being rounding prices to the nearest five or ten cents could lead to increase in prices. While pennies are expensive to make, so are nickels; without pennies, nickels could be in greater quantity. The price of producing and minting nickels will be greater than pennies.
While retiring the penny comes with pros and cons, you will still be able to use and enjoy your pennies for a while longer. The discontinuation of the penny is a huge step for the U.S. towards a more cashless economy.
