When was the last time you used pennies to buy something?

    If you have a hard time remembering, you’re not alone. Most Americans are more likely to stash the coins away than spend them. Yet every year, the government spends millions of dollars making pennies.

    That’s about to change though. By early 2026, the United States will stop penny production. In the future, the coin will be phased out entirely.

    Why? It costs money to make money. For the penny, that price is higher than the coin’s value. Each one-cent coin costs 3.7 cents to make. That amount includes the cost of the metals (zinc coated with copper). It also includes the cost of manufacturing and delivering the coins.

    Stopping penny production could save the government at least $56 million a year. 

    But will the change affect how we shop—and what we pay?

    When did you  last use pennies to buy something?

    Can’t remember? You’re not alone. Most Americans don’t use their pennies. Yet every year, the government spends millions of dollars making pennies.

    That’s about to change. By early 2026, the United States will stop penny production. In the future, the coin will be phased out entirely.

    Why? It costs money to make money. For the penny, that price is higher than the coin’s value. Each one-cent coin costs 3.7 cents to make. That amount includes the cost of buying metals to make the coins. It includes manufacturing the coins and delivering them too.

    The government could save $56 million or more a year by ending penny production.

    But will the change affect how we shop and what we pay?

    When was the last time you used pennies to buy something?

    If you have a hard time remembering, you’re not alone. Most Americans are more likely to stash the coins away than to spend them. Yet every year, the government spends millions of dollars making pennies.

    That’s about to change though. By early 2026, the United States will stop penny production—and in the future, the coin will be phased out entirely.

    Why? It costs money to make money. For the penny, that price is higher than the coin’s value. When you add up the cost of the metals (zinc coated with copper) and the cost of manufacturing and delivering the pennies, each one-cent coin costs 3.7 cents to make.

    Stopping penny production could save the government at least $56 million a year.

    But will the change affect how we shop—and what we pay?

    The U.S.’s first coin was the Fugio cent, in 1787. But that coin was not around for long. In 1792, the government created the U.S. Mint. (That’s the government agency that makes the nation’s coins.) It started making the penny one year later.

    At the time, the penny could buy items like a candle or a biscuit. And it wasn’t even the smallest coin! The half cent was around until 1857.

    But the penny’s power has shrunk because of inflation. That’s a rise in prices over time. In 1900, one cent could buy you a newspaper. In the 1960s, it could buy you a piece of gum. Today it can buy you . . . pretty much nothing.

    The Fugio cent was the U.S.’s first coin. It was first made in 1787. But it was not around for long. In 1792, the government created the U.S. Mint. (That’s a government agency. It makes the nation’s coins.) It started making the penny in 1793.

    Back then, the penny could buy a candle, a biscuit, or other things. And it wasn’t even the smallest coin! We had a half cent until 1857.

    But the penny’s power has shrunk because of inflation. That’s a rise in prices over time. In 1900, one cent could buy a newspaper. In the 1960s, it could buy a piece of gum. Today it can buy almost nothing.

    The U.S.’s first coin was the Fugio cent, in 1787—but that coin was not around for long. In 1792, the government created the U.S. Mint (the government agency that makes the nation’s coins), and it started making the penny one year later.

    At the time, the penny could buy items like a candle or a biscuit. And it wasn’t even the smallest coin! The half cent was around until 1857.

    But the penny’s power has decreased because of inflation (a rise in prices over time). In 1900, one cent could buy you a newspaper. In the 1960s, it could buy you a piece of gum. Nowadays a penny can buy you . . . pretty much nothing.

    Still, if paying in cash, most prices require pennies. A bottle of iced tea may cost $2.59. 

    A fast-food meal may cost $11.49. Either you have to hand over pennies to pay or you get them as change. 

    Will these prices have to go up once we get rid of the penny? For example, will that meal cost $11.50 instead?

    Experts say we won’t have to worry about this problem for a long time. There are about 114 billion pennies currently in circulation. And there are billions more sitting around in people’s homes. Surely pennies will be around a while longer.

    Plus, many Americans use cards or phone apps to buy things. Those shoppers will easily be able to pay exact amounts.

    Even so, many cash payments today require pennies. A bottle of iced tea might cost $2.59. A fast-food meal might cost $11.49. You need pennies to pay. Or you get them as change.

    Will these prices go up once the penny is gone? For example, will that meal cost $11.50?

    Experts say we don’t need to worry about that right now. There are about 114 billion pennies in circulation at this moment. And there are billions more sitting in people’s homes. Surely pennies will be around for a while longer.

    Plus, many Americans use cards or phone apps to buy things. Those shoppers can easily pay exact amounts like $11.49.

    Still, when a person pays with cash, most prices require pennies. A bottle of iced tea might cost $2.59, or a fast-food meal might cost $11.49. Either you have to hand over pennies to pay or you get them as change.

    Will these prices have to increase once we get rid of the penny? For example, will that meal cost $11.50 instead?

    Experts say we won’t have to worry about this problem for a long time, because there are about 114 billion pennies currently in circulation and billions more sitting around in people’s homes. Surely pennies will be around a while longer.

    And anyway, the many Americans who use cards or phone apps to buy things will easily be able to pay exact amounts.

    At some point, though, stores will run out of pennies. What happens then?

    Most prices will likely be rounded up to the nearest nickel. But experts are torn on just how much these future changes will affect Americans. Some say shoppers will hardly notice. Others say all those slightly higher prices will add up. They believe low-income families will be hurt the most.

    Some people also wonder if getting rid of the penny will work in the long run. The whole point is to save the government money. But if stores round prices to the nearest nickel, we’ll need more nickels. And if we need more nickels, the government will have to make more of them. 

    Nickel production is even pricier than penny production. The U.S. Mint says that each five-cent coin costs 13.8 cents to make.

    At some point, though, stores will run out of pennies. What happens then?

    Prices will likely be rounded up to the nearest nickel. Some experts say shoppers will hardly notice the increase. But other experts disagree. They say the slightly higher prices will add up. They believe low-income families will be hurt the most.

    Some people also wonder if getting rid of the penny will really solve the problem. The point is to save the government money. If stores round prices to the nearest nickel, we’ll need more nickels. Then the government will have to make more of them.

    Nickels cost even more to make than pennies. The U.S. Mint says that each five-cent coin costs 13.8 cents to make.

    Will the nickel be the next coin to go? 

    At some point, though, stores will run out of pennies. What happens then?

    Most prices will likely be rounded up to the nearest nickel, but experts disagree on just how much these future changes will affect Americans. Some predict that shoppers will hardly notice the difference, while others warn that all those slightly higher prices will certainly add up—and that low-income families are going to be hurt the most.

    Some people also wonder whether getting rid of the penny will be effective in the long run. The whole point is to save the government money, but if stores round prices to the nearest nickel, then we’ll need more nickels. And if we need more nickels, then the government will have to make more of them.

    Nickel production is even more expensive than penny production. According to the U.S. Mint, each of the five-cent coins costs the government 13.8 cents to make.

    Will the nickel be the next coin to go?