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Yahoo
10-06-2025
- Business
- Yahoo
Trump's order to ‘rip the waste' from budget finally kills US penny production — will its value now skyrocket?
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. 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 I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) '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. 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. 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. 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. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it 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. Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
09-06-2025
- Business
- Axios
The penny's days are numbered
The federal government is phasing out the penny to save money — and while change is hard, an Ohio business leader tells us losing the cents makes sense. Why it matters: The coin's demise means prices for cash transactions will need to be rounded, impacting business' pricing strategies and consumers who rely on cash (typically older and lower-income Americans). Catch up quick: The U.S. Mint will stop making the coins early next year. The Treasury Department placed its final order for blank templates last month. Stopping production will save the government $56 million a year in reduced material costs, a Treasury spokesperson said. Production costs have risen from 1.3 cents to 3.69 cents for every penny over the past decade. The big picture: For similar reasons, Canada discontinued its penny in 2012 and Australia and New Zealand stopped producing their lowest-denomination coins decades ago. How it works: The Treasury told the Wall Street Journal businesses will need to round up or down to the nearest 5 cents once there aren't enough pennies to use in everyday cash transactions. Cashless transactions will still be priced at exact change. Zoom in: "I haven't heard a thing from our members about it," Ohio Chamber of Commerce president and CEO Steve Stivers tells Axios. Typically, mandates concerning whether businesses can or can't take cash — like a state bill introduced in January — are more controversial, he says. Local businesses are increasingly going cashless, including major institutions like sports arenas, the zoo and amusement parks. Stivers said he will be paying attention to the rounding logistics as they play out. Flashback: A former U.S. representative, Stivers sponsored legislation for pennies to be made of steel, rather than copper, zinc and nickel, to cut costs. The intrigue: A 2022 Federal Reserve report found $14 billion — about 60% of actively circulating coins — is sitting in jars and not flowing in the economy. The bottom line: "As we move to a more digital world, it's less and less important whether there is a coin to back something up," Stivers says.
Indianapolis Star
08-06-2025
- Business
- Indianapolis Star
What does the end of the penny mean? Here's what experts are saying
Penny for your thoughts? Or maybe they are worth a nickel now that the Treasury Department is following President Donald Trump's suggestion to stop making pennies. Last month, the Treasury Department placed its last order of blanks – flat metal discs to make pennies – in a move set into motion by President Donald Trump in February. He argues that the coin costs more than 3 cents to produce (actually 3.69 cents, according to the U.S. Mint). Now that we know it's curtains for the coin, many questions arise. What does the demise of the penny mean for consumers and collectors? Could the last pennies be valuable? Here's what we know. MIA Money: $1.7 trillion sits in lost and forgotten 401(k) accounts. Is one of them yours? Doubtful. The U.S. Mint made about 3.2 billion pennies in 2024, according to its annual report, so there will be billions of 2025 pennies available. "There's nothing, statistically, that says they should become valuable," John Feigenbaum, publisher of rare coin price guide Greysheet and executive director of the Professional Numismatists Guild (PNG), a nonprofit organization composed of many of the nation's rare coin experts, told USA TODAY. The coin's legacy could be akin to the 1976 bicentennial quarter, Feigenbaum said. "Everybody, at the time, was hoarding them (and) you couldn't find bicentennial quarters in change. Now people have plastic bags full of them and they're still worth 25 cents," he added. However, the 2025 pennies could have an alternative value as an entry point to collectors. "This would surely spike demand … in other Lincoln pennies, like the ones that go all the way back to 1909," Feigenbaum said, adding that the Lincoln penny, which first featured the 16th president in that year, has had "quite a run." Parents could get a Lincoln penny coin collecting book – options include those from Whitman Publishing, which also publishes Greysheet – and talk to their children about "American history, and who this Lincoln guy is and what would the different designs be all about," Feigenbaum said. Not if you are hoping for them to be valuable. Just as there has been misleading hype about the value of some Lincoln wheat pennies, there may be misinformation about the increased value of 2025 pennies. That's nonsense, Feigenbaum said. They are "not going to be" more valuable, according to Feigenbaum, who said he favored getting rid of the penny. Maybe it's a good time to take all those coins gathering dust in a cup or piggy bank to the bank or a Coinstar machine. The average home has $60-$90 in coins at home, according to the Federal Reserve. Are your old pennies worth millions?: Experts say you shouldn't bank on it Maybe. Not making pennies will nix out the more than $179 million it costs taxpayers to make them, based on figures from the Department of Government Efficiency (DOGE), the department formerly connected to Tesla and SpaceX CEO Elon Musk. The U.S. Mint estimates that not making pennies will save $56 million in material costs, with additional savings from better and more efficient production, CNBC reported. 'For every penny that the United States government prints, we're actually losing money. So, it's a net cost to the federal government,' said Raymond Robertson, director of the Mosbacher Institute for Trade, Economics and Public Policy at the Bush School of Government and Public Service at Texas A&M University, in a news release. But the lack of pennies likely means more reliance on nickels, which cost even more to produce – 13.78 cents, the U.S. Mint says. If the U.S. Mint makes more nickels, "It actually is going to increase costs for the government,' Robertson said. 'So, it's really not clear how much cost savings the government will realize by eliminating the penny," he added. One of the bills (H.R. 1270) introduced in the House of Representatives (technically, Congress holds the power to eliminate a currency) also proposes getting rid of the nickel, too. There is no time frame for prices to be set in five-cent increments – a move to change all those prices ending in 49 or 99 cents to the nearest five cents due to lack of pennies – but they will likely eventually, said Bill Maurer, dean of the School of Social Sciences at the University of California, Irvine, and director of UCI's Institute for Money, Technology and Financial Inclusion. When there are not enough pennies for stores and other retailers to make change, businesses will need to round up or down, the Treasury Department said, according to The Wall Street Journal. For the time being, merchants can keep prices as they are, but the 18% to 20% of Americans who rely on cash could eventually pay a rounded-up price, based on 5-cent increments. "If someone comes to you with cash, you round up, right? So if you're kind of doubly screwed if you're poorer," Maurer told USA TODAY. Other countries that have eliminated low-denomination coins – Australia, Canada and New Zealand, among them – have resulted in differing outcomes, with some prices rounding up and some down, according to As the move to eliminate coin and paper currency continues, a publicly-accessible digital payment system will be needed so that consumers of all income levels can participate, Maurer said. But the loss of physical currency removes a redundancy in the monetary system that's invaluable during disasters and emergencies, according to Maurer. "The more dependent on cashless methods of payment we become, the more risk we place ourselves when there are emergencies or disasters, because you need a well-functioning cash system," he continued. Contributing: Fernando Cervantes, Daniel de Visé and Melina Khan. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@
USA Today
08-06-2025
- Business
- USA Today
What does the end of the penny mean? Here's what experts are saying
What does the end of the penny mean? Here's what experts are saying Show Caption Hide Caption Penny production in US to end, Treasury Department says After 233 years, the U.S. this month will officially end penny production, according to statements from the Treasury Department. Penny for your thoughts? Or maybe they are worth a nickel now that the Treasury Department is following President Donald Trump's suggestion to stop making pennies. Last month, the Treasury Department placed its last order of blanks – flat metal discs to make pennies – in a move set into motion by President Donald Trump in February. He argues that the coin costs more than 3 cents to produce (actually 3.69 cents, according to the U.S. Mint). Now that we know it's curtains for the coin, many questions arise. What does the demise of the penny mean for consumers and collectors? Could the last pennies be valuable? Here's what we know. MIA Money: $1.7 trillion sits in lost and forgotten 401(k) accounts. Is one of them yours? Will pennies be more valuable if the US stops making them? Doubtful. The U.S. Mint made about 3.2 billion pennies in 2024, according to its annual report, so there will be billions of 2025 pennies available. "There's nothing, statistically, that says they should become valuable," John Feigenbaum, publisher of rare coin price guide Greysheet and executive director of the Professional Numismatists Guild (PNG), a nonprofit organization composed of many of the nation's rare coin experts, told USA TODAY. The coin's legacy could be akin to the 1976 bicentennial quarter, Feigenbaum said. "Everybody, at the time, was hoarding them (and) you couldn't find bicentennial quarters in change. Now people have plastic bags full of them and they're still worth 25 cents," he added. However, the 2025 pennies could have an alternative value as an entry point to collectors. "This would surely spike demand … in other Lincoln pennies, like the ones that go all the way back to 1909," Feigenbaum said, adding that the Lincoln penny, which first featured the 16th president in that year, has had "quite a run." Parents could get a Lincoln penny coin collecting book – options include those from Whitman Publishing, which also publishes Greysheet – and talk to their children about "American history, and who this Lincoln guy is and what would the different designs be all about," Feigenbaum said. Should I horde 2025 pennies? Not if you are hoping for them to be valuable. Just as there has been misleading hype about the value of some Lincoln wheat pennies, there may be misinformation about the increased value of 2025 pennies. That's nonsense, Feigenbaum said. They are "not going to be" more valuable, according to Feigenbaum, who said he favored getting rid of the penny. Maybe it's a good time to take all those coins gathering dust in a cup or piggy bank to the bank or a Coinstar machine. The average home has $60-$90 in coins at home, according to the Federal Reserve. Are your old pennies worth millions?: Experts say you shouldn't bank on it Getting rid of pennies. Will it save the US money? Maybe. Not making pennies will nix out the more than $179 million it costs taxpayers to make them, based on figures from the Department of Government Efficiency (DOGE), the department formerly connected to Tesla and SpaceX CEO Elon Musk. The U.S. Mint estimates that not making pennies will save $56 million in material costs, with additional savings from better and more efficient production, CNBC reported. 'For every penny that the United States government prints, we're actually losing money. So, it's a net cost to the federal government,' said Raymond Robertson, director of the Mosbacher Institute for Trade, Economics and Public Policy at the Bush School of Government and Public Service at Texas A&M University, in a news release. But the lack of pennies likely means more reliance on nickels, which cost even more to produce – 13.78 cents, the U.S. Mint says. If the U.S. Mint makes more nickels, "It actually is going to increase costs for the government,' Robertson said. 'So, it's really not clear how much cost savings the government will realize by eliminating the penny," he added. One of the bills (H.R. 1270) introduced in the House of Representatives (technically, Congress holds the power to eliminate a currency) also proposes getting rid of the nickel, too. What will the demise of the penny mean to prices? There is no time frame for prices to be set in five-cent increments – a move to change all those prices ending in 49 or 99 cents to the nearest five cents due to lack of pennies – but they will likely eventually, said Bill Maurer, dean of the School of Social Sciences at the University of California, Irvine, and director of UCI's Institute for Money, Technology and Financial Inclusion. When there are not enough pennies for stores and other retailers to make change, businesses will need to round up or down, the Treasury Department said, according to The Wall Street Journal. For the time being, merchants can keep prices as they are, but the 18% to 20% of Americans who rely on cash could eventually pay a rounded-up price, based on 5-cent increments. "If someone comes to you with cash, you round up, right? So if you're kind of doubly screwed if you're poorer," Maurer told USA TODAY. Other countries that have eliminated low-denomination coins – Australia, Canada and New Zealand, among them – have resulted in differing outcomes, with some prices rounding up and some down, according to As the move to eliminate coin and paper currency continues, a publicly-accessible digital payment system will be needed so that consumers of all income levels can participate, Maurer said. But the loss of physical currency removes a redundancy in the monetary system that's invaluable during disasters and emergencies, according to Maurer. "The more dependent on cashless methods of payment we become, the more risk we place ourselves when there are emergencies or disasters, because you need a well-functioning cash system," he continued. Contributing: Fernando Cervantes, Daniel de Visé and Melina Khan. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day
Yahoo
05-06-2025
- Business
- Yahoo
Forget wheat pennies. How many Indiana pennies are in your couch cushions?
As the U.S. phases out production of pennies, you might be checking your couch cushions or your vacuum for coins that could be worth more than one cent. You also may want to keep an eye out for these redesigned pennies made in 2009 for the bicentennial anniversary of Abraham Lincoln's birth. They may not be worth millions, but they commemorate the time the 16th president spent in Indiana. In 2009, Congress authorized pennies designed to commemorate four locations in Lincoln's geographical history. The four coins also recognized the 100th anniversary of the first year the Lincoln cent was produced. "Abraham Lincoln was born in Kentucky, grew to adulthood in Indiana, achieved fame in Illinois and led the nation in Washington, D.C.," the law reads. Indiana's coin shows a young Lincoln sitting on a log, reading a book. It's meant to depict his time in Indiana from 1816 to 1830. "The design on this coin captures this part of Lincoln's life by showing him reading while he takes a break from his work as a rail splitter," according to the U.S. Mint website. Read about all four coins in the Lincoln Bicentennial One Cent Program at The federal government made its final order of penny blanks in May 2025 — the first step to end the production of the 1-cent coin, a spokesperson for the Treasury Department confirmed to USA TODAY. "The United States Mint will continue to manufacture pennies while an inventory of penny blanks exists," the spokesperson said. The agency did not specify how long the inventory was expected to last, so it's unclear exactly when pennies will no longer be in circulation. Blanks are flat metal discs that eventually become coins, according to the U.S. Mint. In February, Trump instructed the Treasury Department to stop minting the low-value coins. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote in a post on Truth Social. Elon Musk, who has started to scale back his work as head of Trump's Department of Government Efficiency, said in January that penny production in fiscal year 2023 cost taxpayers more than $179 million. In fiscal year 2024, it took 3.7 cents to produce and distribute one penny, according to the 2024 U.S. Mint report. The 2024 cost was up by 20% from the previous year, according to the report. The report said the increase was partly driven by the rising costs of metals like zinc and copper. Similarly, the nickel costs 13.8 cents to produce, according to the U.S. Mint. Penny production: What's next for the penny? The details on US decision to end production So-called "wheat pennies" get their name from the back of the coin having stalks of wheat encircling the "One Cent" text. They were produced from 1909 to 1958. After that, the wheat stalks were shorn and pennies began displaying an engraving of the Lincoln Memorial. Most Lincoln wheat pennies are not super-valuable and are worth just a few cents more than one cent. However, some may escalate into the hundreds of dollars, depending on the condition and when minted. Certain vintages, especially with minting errors, may be worth thousands. You can see the NGC price guide here. Contributing: John Tufts, Minnah Arshad and Fernando Cervantes Jr. This article originally appeared on Indianapolis Star: Yes, the penny is being discontinued. Did you know Indiana has its own?
