End of the penny....

[John VN]

I use a plastic a whole lot more than I used to. Like for groceries, I NEVER thought I would do that. I have been lazy and using it for gasoline and foregoing the cash discount. But being retired, and driving a hybrid, we only buy a tank of gas every two or three months. I did use cash this week at the cafe as their point of sale system was down.

r.e. bold - We use our gas credit card at the pump thanks to the 5% cash back per gallon. Not expecting gas to get bellow $2.00 so CC it is.

 

[Kennywood]

People keep saying that pennies cost $.03 - $.04 to make, and that nickels cost $.15 - $.20 to make. So what? Coins are not one-time use items. It's not like you're using a coin once and then it's destroyed. Coins stay in circulation for years, even decades. I still occasionally find a wheat penny in change that I'm given.

 

[Kennywood]

I use a plastic a whole lot more than I used to. Like for groceries,

When I was in a grocery store not too long ago, I was behind a woman who actually wrote out a check to pay for her groceries. I had to smile. I hadn't seen anyone use a check to pay for groceries in a very long time.

 

[Kennywood]

I saw someone post the following on Facebook:

"I held up a grocery story line because the card reader couldn't read my Apple Watch. The elderly man behind me exhales and said, 'Let's move this long, future boy.'"

 

[RedAngie]

When I was in a grocery store not too long ago, I was behind a woman who actually wrote out a check to pay for her groceries. I had to smile. I hadn't seen anyone use a check to pay for groceries in a very long time.

Was she a “mature” woman?

I was at Dollywood theme park last month and had to go to Guest Services to resolve a minor issue. The person next to me at the counter bought their version of Fast Passes and paid with a traveler’s check. I was surprised that they still exist. Dollywood also still accepts cash, unlike many other theme parks.

 

[_19disnA]

Local grocery store has a new sign about a penny shortage and rounds up/down your purchase total to the next nickel and/or asks if you want to donate your change to a local charity.

Coins do last longer in circulation compared to paper money. I seem to recall a statistic that the average dollar bill lasts for 18 months. Coins last much longer. However, that same rationale has backfired in the past when they introduced various dollar coins to replace the paper dollar bill. Most people still don't use them and making it roughly the same size as a quarter was a big mistake.

 

[kdonnel]

When I was in a grocery store not too long ago, I was behind a woman who actually wrote out a check to pay for her groceries. I had to smile. I hadn't seen anyone use a check to pay for groceries in a very long time.

You saw a time traveler!

 

[kdonnel]

Local grocery store has a new sign about a penny shortage and rounds up/down your purchase total to the next nickel and/or asks if you want to donate your change to a local charity.

Coins do last longer in circulation compared to paper money. I seem to recall a statistic that the average dollar bill lasts for 18 months. Coins last much longer. However, that same rationale has backfired in the past when they introduced various dollar coins to replace the paper dollar bill. Most people still don't use them and making it roughly the same size as a quarter was a big mistake.

It is expected to save $56 million a year just in production costs to eliminate the physical penny. That doesn't account for the costs saved in no longer having to move around the pennies, their storage, or the labor costs associated with counting.

The concept of the penny is not being eliminated. Rounding only needs to occur for cash transactions. For electronic transactions no rounding is required.

Last year just 14% of all transactions in the US occurred using cash and those transactions represent only 11% of the value of all transactions.


This chart shows the percentage of Americans who never use cash in a typical week:


The trend is definitely towards electronic only. Getting rid of the penny is a positive step in the right direction.

Now we should set a sunset date for the nickel.

 

[_19disnA]

I can also recall reports in the past saying how much the govt would 'save' by using that dollar coin vs. a paper bill. Didn't work out so well and all the reasons dollar coins weren't popular in the past have never changed. Studies are often slanted to support the view of the people running the study. I still plan to continue to use/carry cash for small purchases and don't see that changing anytime soon.

Have been in a few stores where they actually charge less if you pay in cash, since they don't have those credit card fees to pay. Something to consider when making a large purchase.

 

[kdonnel]

I can also recall reports in the past saying how much the govt would 'save' by using that dollar coin vs. a paper bill. Didn't work out so well and all the reasons dollar coins weren't popular in the past have never changed. Studies are often slanted to support the view of the people running the study. I still plan to continue to use/carry cash for small purchases and don't see that changing anytime soon.

Have been in a few stores where they actually charge less if you pay in cash, since they don't have those credit card fees to pay. Something to consider when making a large purchase.

In my opinion the dollar coin failed because the dollar bill continued to exist.

When the dollar coin was introduced, the dollar bill should have ceased production. This would have created a natural 18+ month period for people to adjust as the dollar bills in production would reach the point in their life where they are removed from circulation and destroyed due to damage.

The penny will succeed in saving money because it will no longer be produced. People and businesses will have to adapt.

Since 2020 the mint has made over 30 billion pennies. They typically pump 7+ billion a year into circulation. Without those 7+ billion being pumped into circulation every year, the penny will die.

The penny in particular suffers from its low value.

Coins with very low face value, like the penny, often fall out of circulation. People may store them in jars, use them as decoration, or simply not bother to use them because their value is so minimal. This is why a large number of new pennies have been produced annually to replace those that are not being spent.

 

[soccerdad72]

My wife said at the grocery store near us yesterday, they had an offer - bring in 1,000 pennies and get a $20 store gift card. I guess they're really short on pennies right now, which I guess makes sense. Even for those paying cash, who ever pulls out pennies to make exact change? You might give a nickel or dime to get close, but rarely would anyone pay to the penny, so they're probably always giving change in pennies, but never receiving them.

 

[tvguy]

My grocery store stopped taking checks several years ago.

When I was in a grocery store not too long ago, I was behind a woman who actually wrote out a check to pay for her groceries. I had to smile. I hadn't seen anyone use a check to pay for groceries in a very long time.

 

[John VN]

My wife said at the grocery store near us yesterday, they had an offer - bring in 1,000 pennies and get a $20 store gift card. I guess they're really short on pennies right now, which I guess makes sense. Even for those paying cash, who ever pulls out pennies to make exact change? You might give a nickel or dime to get close, but rarely would anyone pay to the penny, so they're probably always giving change in pennies, but never receiving them.

r.e. 1st bold -- *which I guess makes cents*

r.e. 2nd bold -- honest truth -- I bicycle to Walmart for food shopping and find coins on the ground and even in Walmart on the floor. Yesterday I found a nickel biking through the Walmart parking lot, 2 pennies in the store on the floor and 2 more pennies in the street. Went to Publix later in the day and paid by CC for my things and cash for a friend's order. His order came to $32.08 so out came a $20.00 a $10.00 and 2 - $1.00 plus a nickel and 3 pennies that I picked up.

 

[CdnCarrie]

I saw someone post the following on Facebook:

"I held up a grocery story line because the card reader couldn't read my Apple Watch. The elderly man behind me exhales and said, 'Let's move this long, future boy.'"

Someone in front of me was paying with phone - touching card on phone screen to reader. Took many tries and several minutes.
I felt like saying “just get the physical card out!!”

 

[ChipTheRescueRanger]

This might be my fault TBH. I have quite a few pennies in a draw than never come with me back to the US

 

[hhisc16]

I read yesterday they are trying to find a cheaper metal to make the nickel to keep the cost of production down.