The Penny’s Exit Sparks Questions
The U.S. Mint has decided to stop making pennies by the end of 2025, and people are already wondering: could the nickel be next? For years, the penny has been a topic of debate. It costs more to make a penny about 2.1 cents each than it’s actually worth. That’s a losing deal for the government. With inflation making small coins less useful, many folks are asking if the nickel, worth just five cents, is also on the chopping block. The Mint hasn’t said anything official about nickels yet, but the chatter is growing louder.
Why Coins Are Losing Their Shine
Small change isn’t what it used to be. Back in the day, a penny or nickel could buy candy or a soda. Now, you can’t even get a gum ball for five cents. Most people just toss their coins in a jar or leave them at the store. Businesses are also moving away from cash, with many shops going card-only or rounding prices to avoid dealing with pennies. The nickel isn’t far behind in this trend. It costs around 8 cents to produce a nickel, which doesn’t make much sense when people barely use them.
| Coin | Value | Production Cost |
|---|---|---|
| Penny | $0.01 | $0.021 |
| Nickel | $0.05 | $0.08 |
What’s Pushing the Change?
A few things are driving this shift. First, making coins is expensive. The U.S. Mint spends billions every year to produce coins that often sit unused. Second, digital payments are taking over. From Apple Pay to Venmo, fewer people carry cash at all. Third, there’s the hassle factor coins are heavy, and nobody wants to count them. Some countries, like Canada, already ditched their penny in 2012, and they’re doing just fine. Experts think the U.S. might follow that path with both the penny and nickel.
The Case for Keeping the Nickel
Not everyone is ready to say goodbye to the nickel. Some argue it’s still useful for small transactions, like vending machines or parking meters. Others point out that rounding prices to the nearest dime could hurt low-income shoppers, who might end up paying a few cents more. There’s also the history angle—nickels have been around since 1866, and people like the tradition. The image of Thomas Jefferson on the coin adds a sentimental touch for some Americans.
What Happens If the Nickel Goes?
If the nickel does get phased out, it wouldn’t be the end of the world. Prices could be rounded to the nearest 10 cents, like in Canada. For example, a $1.97 bill might become $2.00, or a $1.93 bill could drop to $1.90. Most shoppers wouldn’t notice much difference, but businesses would save time and money handling less change. The Mint could focus on making higher-value coins, like quarters, which are still widely used. Still, some worry that ditching coins altogether could make life harder for people who don’t trust digital payments.
Looking Ahead
The penny’s days are numbered, and the nickel’s future isn’t looking great either. While no official plans have been announced, the writing’s on the wall: small coins are becoming a thing of the past. As more people swipe cards or tap phones to pay, the need for coins keeps shrinking. For now, nickels are safe, but don’t be surprised if they start fading away in a few years. Will we miss them? Probably not as much as we think.
