The humble penny, a staple of American change for over 200 years, is on its way out. The U.S. Treasury Department recently announced it will stop making pennies in 2026, as the cost to produce them far outweighs their one-cent value. With billions of pennies still in circulation, this decision could change how we handle small transactions. What does this mean for your pocket change? Let’s break it down.
A Coin That Costs More Than It’s Worth
The Lincoln penny, first minted in 1793, has long been a symbol of American currency. But making a penny now costs about 3.69 cents, according to the U.S. Mint, leading to losses of around $85 million in 2024 alone. The coins, made mostly of zinc with a thin copper coating, have become a financial burden. In February 2025, President Trump ordered the Treasury to halt penny production to cut waste, with the final order of penny blanks placed this month. The Mint will stop production once these blanks run out, saving taxpayers an estimated $56 million a year.
Why Say Goodbye to the Penny?
The decision to end penny production isn’t just about cost. Pennies are losing their place in a world moving toward digital payments. Many vending machines, toll booths, and even some stores don’t accept pennies anymore. Plus, it takes time to count and transport them, costing businesses and banks extra effort. Some argue pennies keep prices low and help charities with small donations, but others say rounding prices to the nearest nickel won’t make much difference. Canada ditched its penny in 2012, and their economy adjusted just fine, suggesting the U.S. could follow suit.
What Happens to the Pennies Out There?
There are still about 114 billion pennies in circulation, worth $1.14 billion. That’s a lot of loose change! But as production stops, pennies will slowly disappear—lost under couches, tossed in jars, or melted down (though that’s illegal). Businesses may start rounding prices to the nearest nickel, which could slightly raise costs for cash users. For example, a $1.99 item might round up to $2.00. Digital payments, like cards or apps, won’t be affected since they handle exact amounts. Economists say the impact on prices will be small, but cash-heavy shoppers might notice a slight pinch.
Could Your Pennies Be Worth More?
- Check the date: Rare pennies, like the 1943 copper penny or 1909-S VDB, can be worth thousands or even millions.
- Look for errors: Coins with double-stamped dates or missing mint marks fetch high prices at auctions.
- Save wheat pennies: Pennies from 1909 to 1958 with wheat stalks on the back are popular with collectors.
- Get them graded: A professional coin grader can confirm if your penny is a valuable rarity.
| Penny Type | Key Feature | Estimated Value |
|---|---|---|
| 1943 Copper | Copper, not steel | $1.7M – $5.5M+ |
| 1909-S VDB | “S” and “VDB” mark | $100,000 – $1M |
| 1955 Doubled Die | Doubled date | $50,000 – $336,000 |
What’s Next for Your Change?
As pennies fade away, the nickel becomes the smallest coin, but it’s not cheap to make either—costing about 13.78 cents in 2024. Some worry nickels could be next, but for now, they’re safe. The end of the penny might push more people toward dollar coins, which are cheaper to produce long-term. For collectors, pennies could become hot items, especially rare ones. So, check your piggy banks and start saving those pennies—they might be worth more than you think in the future.
Time to Say Farewell
The penny’s end marks a big change in how we use money. While it won’t disappear overnight, its days are numbered. Whether you’re a collector hunting for rare coins or just someone with a jar of change, now’s the time to take a closer look. The penny may be small, but its exit could leave a big mark on America’s economy and culture. So, next time you find a penny, don’t toss it—it could be a piece of history.
