How many of us recall the thrill of finding a penny face-up, deeply believing it would bring you good luck? The humble penny has long held a place in American culture as more than just the smallest unit of currency. But times change, and the cost of things is no exception.

Because they’re made partly from copper, the cost to mint the penny is higher than its value, raising debate about whether it makes sense to continue producing this one-cent wonder. Inevitably, the almighty dollar has proven more important than the penny.

2 for 1 pennies

Many of us have wondered, why bid the penny adieu instead of just making the penny cheaper to produce? Well, because it’s not that simple. The challenge is that pennies need to be a specific size and weight to work in vending machines, cash registers, and coin sorters. Changes in production have already happened for the penny. Originally, pennies were made mostly of copper. In 1982 they were changed to mostly zinc with a thin copper layer in order to lower their production cost. But the change wasn’t significant enough and the penny still costs more to produce than its value—around 1.9 cents per penny. Changing the penny any further could create issues in coin-operated machines

• Inflation and Value: In addition to its rising cost of production, the plucky penny doesn’t serve us the way it once did. In 1925, a single penny had real purchasing power—you could buy a newspaper, a piece of fruit or candy, and even a silent film might cost only a few cents. Today, it’s hard to think of anything you could buy for a dollar, let alone for just one cent.

• Changes to the way we do business: If inflation wasn’t enough, the penny’s increasingly limited practical use ultimately sealed its fate. Cash transactions are rare these days and digital payments are reigning supreme. Swiping a card or tapping your phone is about as effortless as it gets and carrying a bulky fistful of coins has little appeal. Simply put, the penny couldn’t keep up with modern spending habits. Its retirement isn’t due to a lack of sentiment, but a matter of practicality.

What does it mean for your money?

The absence of the penny won’t have a dramatic effect on day-to-day life. Despite some speculation, prices are not expected to jump. The change primarily affects cash purchases, which will be rounded to the nearest five cents.

For example, if you go to the store to buy a bunch of bananas for $0.99, they will cost you a dollar. However, if that same bunch of bananas is part of a larger grocery trip, the $0.99 price stays the same and only the final transaction total is rounded to the nearest five cents.

This rounding applies only to cash transactions. All digital payments, including debit cards, credit cards, and mobile wallets, will continue to process exact amounts down to the cent. So, if you tap your phone to buy that bunch of $0.99 bananas, you’ll still pay exactly $0.99. Since most of us already choose to tap or swipe when we pay for things, the impact of retiring the penny will be minimal.

Will stopping the penny increase its value?

The U.S. officially stopped producing pennies on November 12, 2025. At the event marking this historic change, U.S. Treasurer Brandon Beach noted the last time America retired a coin was the half cent in 1857. Today, the half penny can go for anywhere from $100 for a common date in rough condition, to hundreds of thousands of dollars for a rare date in mint condition. So, it’s natural that there’s plenty of speculation about the penny’s future value.

Turns out we already have an answer. According to Stacks Bowers Galleries in California, the final collection of minted pennies recently went to auction. It included 232 lots, each featuring three coins: a 2025 Philadelphia Mint penny, a 24-karat gold penny, and a 2025-D penny from the Denver Mint. Each coin had a special embossing to commemorate the penny’s final run since its debut in 1793. The final collection sold for $16.76 million dollars.

A small coin with a big lesson

While the plucky penny might have left our wallets for good, (unless you have about $17 million laying around to buy more) it leaves us with a very useful reminder: small amounts add up. As a trusted financial partner serving California for more than 90 years, we think this conversation around the penny highlights a bigger topic of financial awareness. Understanding where your money goes and how you’re spending is a vital part of being in control of your money.

Our advice? Take this opportunity to examine your own budgeting and spending habits. Whether you’re rounding up your purchases or looking for unnecessary costs in your own habits, the message is clear: your financial choices matter.

For more support, advice, and helpful tips, visit our Financial Wellness Center for everything from monitoring and improving your credit score to accessing our expansive library of financial learning tools.