Farewell to the U.S. Penny: A Change for Our Pockets
There has been a lot of conversation recently about the future of the U.S. penny, and it looks like we may soon be bidding a fond farewell to the one-cent piece.
Why the Change?
For years, the penny has been a staple of American currency. However, the cost to produce it has steadily risen. It now costs the U.S. Mint 3.69 cents to produce one penny. When you consider the Mint produced approximately 3.2 billion pennies in fiscal year 2024, it becomes clear why phasing out production is being considered. Moving away from the penny helps streamline our currency system and based on recent estimates, will save around $56 million per year in production savings. . It’s a shift toward efficiency that reflects how our spending habits are evolving, especially as more of us rely on digital transactions and cards for our daily needs.
A Walk Down Memory Lane
Before we say goodbye, let's take a moment to appreciate the history of this little copper-colored coin. The penny has been with us for a long time, and it has quite a story to tell.
• A Historic Start: The first one-cent coin of the United States was the Fugio Cent, authorized by Congress in 1787. It bore the motto "Mind Your Business" on one side and 13 linked rings and "United States/We Are One" on the reverse. Benjamin Franklin inspired the design, which is interpreted to mean, "Time flies, so mind your business."
• First U.S. Mint Penny: Authorized under the Coinage Act of 1792, the penny was one of the first coins produced by the U.S. Mint. It was a large, pure copper coin featuring a woman with flowing hair symbolizing liberty.
• Changing Designs: In 1857, the coin got smaller and the metal composition changed to 88% copper and 12% nickel. From 1857-1858 the new coins featured a flying eagle on one side and a wreath on the reverse. The "Indian Head" design appeared from 1859 to 1909.
• Honoring Lincoln: In 1909, Abraham Lincoln became the first historical figure to grace a U.S. coin when his portrait was added to the penny to commemorate his 100th birthday.
• Wartime Changes: During World War II, copper was needed for the war effort. For one year—1943—pennies were made out of zinc-coated steel. If you find a gray penny in an old collection, you are holding a piece of history!
• Not Just Copper: Since 1982, the penny has actually been mostly zinc with just a thin copper plating.
• Unusual Pennies: In honor of the Mint's 225th anniversary in 2017, pennies made in Philadelphia had a "P" mint mark for the first time. In 2019, the West Point Mint made special collectible pennies with a "W" mint mark.
• Going, Going, Gone: Last year, the Mint auctioned the last 2025 circulated pennies produced at the U.S. Mint in 232 three-coin special sets. Each set included one penny from each of the Mint's production facilities in Denver and Philadelphia, and for the first time ever, a 24-karat gold uncirculated penny. Each of the auctioned pennies bears an omega mark, symbolizing the end of the penny. The auctioned sets went to winning bids totaling $16,764,500.
What This Means for Us
So, what does this mean for your daily transactions? In many cases, cash transactions will simply be rounded to the nearest five cents. Most retailers have posted signs indicating their new coin policies. If you pay with a card or check, the exact amount will still apply, down to the cent.
Whether you are emptying out a piggy bank or just wondering how this affects your grocery bill, know that we are committed to providing you with clear, honest information. This change is just another step in our shared financial future, and we are ready to move forward together.