Jul 30, 2025
After 233 years in circulation, the U.S. government is finally phasing out the penny. According to a Treasury Department spokesperson, the U.S. Mint has made its last purchase of penny blanks and will halt production of the coin once that supply is exhausted, likely by early next year.
The move is part of the Trump administration’s efforts to cut operational costs.
Advertisement
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” President Donald Trump said in February.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
The cost of producing a single penny has surged over the past decade — climbing from 1.3 cents to 3.69 cents — with a sharp 20% increase in fiscal year 2024 alone, according to the Mint. Still, penny production accounts for just 0.00003% of the U.S. federal budget, according to CNBC — a tiny drop in a multi-trillion-dollar ocean.
While the move won’t make much of a dent in the federal deficit, it could change the way Americans save and spend. Here’s how.
Impact on savers
Saving cash and pinching pennies isn’t as common as it used to be, but many Americans — especially seniors and low-income consumers — still like to keep some coins around. The Federal Reserve estimates that a typical household could have $60 to $90 in coins at home.
If you or your grandparents have a stash of pennies, this could be a good time to convert them into digital savings that can earn interest or capital appreciation instead of steadily losing value to inflation.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Impact on collectors
Since the Mint plans to stop producing pennies, the number in circulation will gradually decline. But experts say most pennies aren’t likely to become rare collectibles.
One exception is the 1943 copper Lincoln wheat cent — a famous minting mistake that slipped through during World War II, when copper was supposed to be conserved for the war effort and pennies were made from zinc. According to John Feigenbaum, publisher of the Greysheet Rare Coin Price Guide, these elusive coins have occasionally sold for as much as $1 million at auction.
Still, the odds of finding one in your spare change are incredibly slim. Feigenbaum told USA TODAY it's about as likely as finding a forgotten winning lottery ticket in your junk drawer.
Impact on shoppers
Despite the rise of digital payments, cash and coins remain popular. A recent YouGov poll found that 67% of U.S. adults used cash for at least one transaction in the previous 30 days.
Consumers will still be able to use pennies after production stops. But as they gradually disappear from circulation, the Treasury Department told the Wall Street Journal that businesses will need to adjust. Prices may be rounded up or down to the nearest 5 cents.
That means the days of 99-cent pricing may be numbered. And don’t be surprised if businesses more often round up than down.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
Managing Money • 13h ago
Are you richer than you think? 5 clear signs you’re doing better than the average American in 2026
Managing Money • Jun 11
