One Penny May Seem An Insignificant Thing, But It Is The Small Seed From Which Fortunes Spring

Dollars and Cents

No more passing them by when you see one on the sidewalk. Forget about wasting a couple by putting them in your loafers. And don’t even consider throwing them into a wishing well!

The Treasury Department has announced that it is dropping the penny. Officials say the last new pennies will enter circulation in 2026.

Long term—and we’re talking many, many years—don’t expect there to be much difference with your “small change.” After all, there are 114 billion pennies in circulation today. That means roughly 900 for each of the 128 million families in the U.S.

But check your pockets first, because if you happen to have one of the pennies below, it’s worth more than a bitcoin!

Inflation

Why the change? Cost, mostly. It costs 3.7 cents to make a penny. Which means the nickel could be next. It costs about 13.8 cents to make those. 

“No More Pennies Could Spark Higher Inflation,” read one of my favorite headlines when the Treasury announced the news.

Some inflation hawks concluded that businesses will start to “round up” prices immediately, putting upward pressure on costs. But that seems like a hasty conclusion. When you dig into the details, you see that nearly 70 percent of in-store payments occur with credit or debit cards. Another big chunk utilizes digital wallets. So, not many retailers are handing back coins to customers.

Cashless Venues

In fact, I went to a baseball game last week, and neither the Padres nor the Dodgers wanted anything to do with cash or coins. Each concession only accepts cards or digital wallets for payment. It’s part of a broader trend aimed at speeding up transactions and enhancing security. 

Wealth Planning

The most famous saying about pennies related to money is “A penny saved is a penny earned.” 

This proverb emphasizes the value of thrift and saving money. It suggests that by not spending a small amount of money, you are effectively increasing your wealth by the same amount as if you had earned it. While often attributed to Benjamin Franklin, variations of the sentiment existed before his time.

Retirement Expenses

As an investor, you have saved to spend during retirement. Your investments have also grown by staying within your budget. As financial mentors, we help keep you on track and accountable, making for a meaningful and secure retirement. If you’d like to review your expenses so far this year, let us know, and we can send you our expense worksheet form to fill out and compare your year-to-year spending. 

Trivia

If anyone should be upset about this penny business, it’s Abraham Lincoln. He’s no longer going to be on a coin and a bill. That club now includes only two presidents! Can you name who they are?

Sources: CNBC dot com, May 22, 2025. “Get ready to round up: Treasury set to halt penny production” / Finance dot com, March 29, 2025. “10 of the Most Valuable Pennies”
USMint dot gov, 2025. “Coins – Penny” / Capitaloneshopping dot com, May 27, 2025. “Cash vs Credit Card Spending Statistics” / MLB dot com, 2025. “Information Guides”