The U.S. just retired the penny. Here's why that matters.

The one-cent coin is officially a thing of the past.

On November 12, 2025, the U.S. Mint pressed its final penny, ending production for the coin that has been in circulation since 1793.

The main reason? Economics.

The primary driver for the penny's demise is simple: it costs the government more to make the coin than what its worth.

According to the U.S. Mint, the coin cost more to produce than its face value (about 3.7 cents to mint one penny), resulting in a loss of over $85 million in 2024 alone. The process looks like this:

1. 1. Creating the metal blank. Turning raw materials (mostly zinc and copper for the penny) into small and smooth discs.
   2. Striking the design. Pressing the disc between two dies, which stamps the coin with its design (like the image of Lincoln).
   3. Quality control and distribution. Inspecting the completed coins for defects and shipping them to the Federal Reserve and federal banks.

2025 marks the 19th consecutive year that the coin has cost more to mint than its actually worth. Ending production is expected to save the government around $56 million annually.

Here is what that that could mean for you.

The biggest change right now is the end of production. Since the U.S. Mint is no longer making new pennies, businesses and banks are running into a supply shortage, which may change how you pay for things:

• • Paying with cash: Because new pennies are gone and the old ones are slowly disappearing, some stores may start rounding your cash total up or down to the nearest nickel.

    • • For example, a $10.02 bill might be rounded down to $10.00, and a $10.04 bill might be rounded up to $10.05.

  • Paying with cards: If you use a credit card, debit card, or phone app, the charge will still be for the exact amount.

  • Your old pennies: All the pennies you have at home or in your bank are still good money (legal tender). You can keep using them for purchases or deposits until they naturally leave circulation over the years.

  • We're not alone: Other countries, like Canada and Australia, already got rid of their smallest coins years ago, and retailers there successfully adopted rounding.

The retirement of the penny is a sign of an economy that is always changing. As a member-owned credit union, our priority is making sure you feel confident about your money.

Whether you need help understanding the long-term impact of digital payments or are looking for ways to grow your savings, OnPath Credit Union offers financial counseling and personalized support to help you stay resilient and secure in any economic climate.

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