What the “penny‑phase‑out” really means for you – a quick guide
Below is a concise, action‑oriented rundown drawn from the CNET‑style piece you posted (and a few extra bits that often get missed). It’s meant to answer the two most common questions people have when the United States finally retires the one‑cent coin:
| Question | Bottom‑line answer | Why it matters / what to do next |
|---|---|---|
| Will prices change when the penny disappears? | No, not in any noticeable way. Most retailers will keep using “‑99” pricing (e.g., $4.99) and simply round the transaction to the nearest five‑cent piece. | This is exactly what New Zealand did after demonetising its 1‑cent coin in 2006: a $9.99 tag stays $9.99, but the cash register rounds the total to the nearest nickel (up or down). The same approach is already in place in Canada and Australia. |
| How will my existing stash of pennies be handled? | You can cash them, donate them, or turn them into a fun project. | See the “Be penny‑wise” section below for the most efficient ways to convert or repurpose them. |
| Will the rounding hurt me financially? | Practically zero impact over the long run. Studies of the New Zealand and Canadian roll‑outs show total rounding “gains” and “losses” cancel out at the population level; individual shoppers may see a few cents one way or the other, but not enough to matter. | |
| Is the nickel next in line for retirement? | Unlikely-at least for now. The nickel costs about 14 cents to produce (roughly three times its face value), but it still plays a crucial role in cash pricing (e.g., $0.95,$1.05). Policymakers would need a broader cash‑payment redesign (perhaps a 10‑cent‑only system) before pulling it. | |
| What about “penny‑list” deals? | They’ll vanish once the coin is gone. Stores like Dollar General keep a weekly “penny list” of clearance items priced at 1 cent; those promotions will disappear when the penny is demoted to the history books. |
1. Why the “penny‑free” world works (the New Zealand example)
- Retail pricing stays the same – Stores continue to display $X.99, $X.95, etc.
- Cash registers round at the point of sale – The total is rounded to the nearest 5 cents (nickel).
- Electronic payments are untouched – Card, mobile‑pay, and online purchases still charge the exact cent amount; the rounding only affects physical cash.
Result: No major price inflation, no “nickel‑tax” on every purchase, and a smoother cash‑handling process for businesses (no more fiddling with piles of pennies).
2. What to do with the pennies you already have
| Method | How it works | Approx.cost / time | Tips |
|---|---|---|---|
| Coinstar kiosks | Insert loose coins → get a cash voucher (≈ 87 % of face value after a ~13 % fee). | 5 min per visit; fee is the only downside. | Look for a kiosk inside a grocery store (most have a “no‑fee” option if you choose e‑gift‑card credit). |
| Bank / credit‑union drop‑off | Some branches have free‑standing coin‑counting machines; others will count and roll your coins for free (or for a small fee if you’re not an account holder). | 10‑15 min; may need to un‑wrap pre‑wrapped rolls. | Call ahead – many banks reject pre‑wrapped rolls because they want to verify authenticity. |
| Donate to a charity | Non‑profits like Salvation Army, Goodwill, or local food‑banks often accept loose change. | Quick drop‑off; you get the good‑will benefit. | Combine with a Coinstar visit – you can donate the cash voucher rather of cashing out. |
| Spend them before the deadline | Use them at places that still accept pennies (e.g., Dollar General “penny list”, some local farmers markets). | Quick,but a bit of a scavenger hunt. | Keep an eye on community‑board sites (Facebook marketplace, Nextdoor) for “penny‑only” pop‑up sales. |
| Turn them into a project | Arts‑and‑crafts, budget‑learning games, or science experiments (e.g., measuring conductivity). | Fun for kids; no money value, but educational. | Check out Greenlight’s “What to Do With Pennies” page for printable activity sheets. |
| Check for collector value | Most modern pennies are worth face value, but some older or error coins can be worth $10‑$150+. | Requires research; use the U.S. Coin Book “most valuable pennies” list. | look for dates & mint marks: 1943 copper‑penny, 1909‑1918 Indian Head, 1959‑1962 “large‑date” Lincoln, etc. |
| Let them go | If the effort outweighs the payoff, simply discard (or put in a jar for the next recycling run). | No cost, no time. | Most municipal recycling programs will melt down pennies for you; they’ll be turned into other metal products. |
Quick “cheat‑sheet” for cash‑out
| Quantity | Approx. cash value (after Coinstar fee) | Best option |
|---|---|---|
| < $5 | $4.35 (if you want cash) | Toss into a bank roll‑up (often free) or donate. |
| $5‑$20 | $4.35‑$17.40 | Coinstar if you want cash fast; otherwise, bank for no fee. |
| > $20 | $17.40+ | Bank is cheapest (no fee) – most banks will count and credit the full amount to your account. |
3. What the rounding looks like in practice
| Purchase total (pre‑round) | Rounded cash total (nearest 5 c) | Example of typical receipts |
|---|---|---|
| $3.21 | $3.20 | “Subtotal $3.21 – Cash‑round - $0.01” |
| $5.97 | $6.00 | “Subtotal $5.97 – Cash‑round + $0.03” |
| $12.13 | $12.15 | “Subtotal $12.13 – Cash‑round + $0.02” |
Note: Digital payments (credit/debit, Apple Pay, etc.) skip the rounding and charge the exact cent amount.
4. Is the nickel next?
* production cost: ~ 14 cents per nickel (≈ 3 × face value).
* Why it’s still kept:
* It provides a mid‑point between 5‑cent and 10‑cent increments, which is useful for cash pricing (e.g., $0.95, $1.05).
* Removing it would force a 5‑cent‑only cash system, which would be a larger cultural shift and would likely require new pricing strategies (e.g., $4.95 → $5.00).
* Current policy chatter: Some economists argue for a 10‑cent‑only cash system,but the political momentum hasn’t gathered enough steam yet. Until a serious proposal reaches Congress, the nickel will likely stay for the foreseeable future.
5. Take‑away checklist
- Locate your nearest Coinstar (or bank) now-most kiosks will still accept pennies until the Treasury officially ends minting.
- Don’t wait for “nickel‑rounding” to affect your budget; the impact is negligible.
- If you love a good deal, keep an eye on Dollar General’s “penny list” while it lasts.
- Teach kids the rounding concept-use a handful of pennies to show how $0.99 becomes $1.00 in cash but stays $0.99 on a card.
- Check for rare coins only if you suspect you have somthing older than 1970 or with a known mint‑error.
TL;DR
The United States will soon retire the penny, but everyday life won’t change dramatically.Prices stay the same, cash registers will round to the nearest nickel, and you can cash out or donate your existing pennies today via Coinstar, your bank, or a charitable drop‑off. The nickel isn’t on the chopping block yet, and the overall economic impact is essentially nil-so you can breathe easy, cash out the change, and move on.
