The penny's days are numbered
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
25 minutes ago
- Business Wire
FICO and Chelsea Football Club Kick Off Multi-Year Partnership to Champion Financial Empowerment
BOZEMAN, Mont.--(BUSINESS WIRE)--Global analytics software company FICO has teamed up with Chelsea Football Club, and will work with the club as its U.S. partner in a multi-year deal. As part of the partnership, Chelsea FC will collaborate with FICO on financial literacy initiatives to highlight how understanding credit and credit scores play a powerful role in helping U.S. consumers to successfully achieve their financial dreams. FICO has teamed up with Chelsea Football Club, and will work with the club as its U.S. partner in a multi-year deal to collaborate on financial literacy initiatives. The partnership comes at a moment of global celebration for Chelsea FC, who recently secured their second FIFA Club World Cup title with a commanding 3–0 win over Paris Saint-Germain. This milestone underscores the club's continued excellence on the pitch and adds momentum to their off-field efforts to inspire and educate fans worldwide. 'We are thrilled to be partnering with FICO in the U.S. We are proud to work with a company that shares our values in using the power of sport to motivate, educate and inspire people. This partnership will help us inspire even more soccer fans to realize the importance of financial literacy and promote the resources FICO makes available to help supporters understand how to achieve their financial goals,' said Dan McEwan, director of Partnerships for Chelsea Football Club. In a study, FICO found that most Americans (98%) believe financial literacy is important for achieving financial stability and that access to more financial education could help them improve their current financial situation. However, more than one in four (28%) members of Gen Z do not consider themselves financially literate. FICO is committed to expanding awareness of the tools and programs that exist to address the knowledge gap and empowering people and economies through financial literacy: FICO's Score A Better Future™ financial education and empowerment program is designed to help consumers improve their understanding of their credit and overall financial well-being. Consumers learn from credit experts about how credit impacts their financial health, what the key ingredients are that make up the FICO ® Score, and the myths and facts about FICO Scores. FICO's Score A Better Future™ Fundamentals program expands access to financial literacy education for teens through workshops focused on credit and personal finance. FICO utilizes thrilling sports partnerships to inspire and motivate fans to learn to how to take control of their financial futures. FICO ® Score Open Access enables credit and financial counselling providers to share FICO Scores with their customers. Over 100 counselling organizations are participating, and more than 250,000 credit scores have been shared with consumers through this program. The myFICO website and app that allow consumers to check and monitor their FICO® Score for free. 'We're proud to partner with Chelsea FC to champion financial literacy among soccer fans across the United States. Financial well-being is essential to every thriving community, and through this collaboration, we aim to empower fans with the knowledge and tools they need to make confident, informed decisions about their financial health,' said Jenelle Dito, vice president of Consumer Empowerment Programs and Partnerships at FICO. For more information about FICO's credit empowerment programs, visit To check your FICO ® Score for free, go to: About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at FICO and Score A Better Future are trademarks or registered trademarks of Fair Isaac Corporation in the U.S. and other countries.
Epoch Times
26 minutes ago
- Epoch Times
Interviews to Replace Fed Chairman to Start After Labor Day, Bessent Says
Potential candidate interviews for the post of the new Federal Reserve chairman will be happening soon, Treasury Secretary Scott Bessent said in an Aug. 19 interview with CNBC. 'In terms of the interview process, we've announced 11 very strong candidates. I'm gonna be meeting with them probably right before/right after Labor Day, and to start bringing down the list to present to President [Donald] Trump,' Bessent said, without providing any more details on the list. This year, Labor Day falls on Sept. 1.
Axios
an hour ago
- Axios
Iowa taxpayers expected to see average of $3,000 in savings
President Trump's "big, beautiful bill" is expected to save Iowans an average of $3,139 on their federal taxes next year, according to an analysis released last week by the Tax Foundation. Why it matters: The savings could free up money for people to spend on other things, potentially giving Iowa's economy a much-needed boost. Catch up fast: The bill also includes new tax breaks for tips and overtime income, a cut for seniors, and an expanded child-care tax cut, all of which expire in 2028. Trump called the bill " the greatest victory yet," signing it at a highly staged White House Independence Day celebration. Friction point: The bill also made steep cuts to social spending on food benefits and Medicaid, outweighing the benefits for many lower-income Americans. And it phases out some energy tax credits, which nonpartisan think tank Energy Innovation estimates will cost Iowans an additional $350 annually by 2035, the Register reports. By the numbers: The bill's passage will give the average American a federal tax cut of $3,752 in 2026 compared with what they would've paid if the 2017 tax cuts had expired, according to nonpartisan research group the Tax Foundation, Axios' Emily Peck and Jason Lalljee report. Wyoming ($5,375) and Washington ($5,372) will experience the biggest breaks. Mississippi ($2,401) and West Virginia ($2,503) will see the smallest. Zoom in: Iowa's average cuts in 2026 range from $2,311 in Appanoose County to $4,330 in Dallas County. What they're saying: Iowa's all-Republican congressional delegation supported the bill. The other side: The bill will kick 100,000 Iowans off Medicaid and put rural hospitals and nursing homes at risk, Iowa Democratic Party Chairperson Rita Hart said in a statement just after the bill passed last month.
