From the desk of Dave Purdy: The US will stop minting pennies this summer

For over 230 years, the humble penny has been a part of American commerce. First minted in 1793, the original U.S. penny was made of pure copper and much larger than the one we know today. Featuring figures like Benjamin Franklin and, since 1909, Abraham Lincoln, the penny has long symbolized thrift and tradition.

But as our economy has evolved, the practicality of the penny has diminished. The US Treasury will discontinue penny production this summer, federal officials announced recently. Today, it costs nearly three cents to manufacture a single one-cent coin—an inefficiency that adds up to tens of millions of taxpayer dollars each year. Furthermore, inflation has significantly eroded the purchasing power of the penny. What once bought a loaf of bread now gathers dust in jars and couch cushions.

Several countries, including Canada and Australia, have already eliminated their lowest denomination coins. In those systems, cash transactions are simply rounded to the nearest five cents, with minimal impact on pricing or consumers. Electronic transactions, which dominate today’s marketplace, are unaffected.

From a financial advisor’s perspective, the move to eliminate the penny is not only fiscally sensible but reflects a broader truth: our money—and our habits—must evolve with the times. As we move increasingly toward a digital economy, clinging to outdated financial instruments can hinder rather than help.

While the penny may still hold sentimental value, its financial value is negligible. Eliminating it is a smart, symbolic step toward greater efficiency in both government spending and personal finance. Source: Morningbrew.com 2025