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Don’t Toss Those Pennies Just Yet! Your Change Jar Might Be Hiding a Small Fortune
Good news, coin collectors and casual savers alike! While the U.S.
Mint may have officially pressed its last penny earlier this year, that doesn’t mean those copper-colored coins are destined for the trash. In fact, that forgotten coin jar in your closet could be worth more than you think.
President Donald Trump reportedly ordered the end of penny production shortly after taking office, with the Mint finishing its final batch on November 12. This move, aimed at saving an estimated $56 million in material costs, has already started to impact businesses. Convenience store chain Sheetz, for example, ran a promotion offering free soda for pennies, while some McDonald’s locations are beginning to round totals to the nearest five cents.
But what does this mean for the humble penny? Experts are urging Americans not to underestimate the value of their loose change.
Should You Really Throw Away Pennies? Absolutely Not!
Turns out, many of us are sitting on a small goldmine – or rather, a copper mine. Kevin McColly, CEO of Coinstar, revealed to USA Today that people often underestimate the value of their coin jars by as much as half. A 2022 Federal Reserve study backed this up, finding that the average American has between $60 and $90 in neglected coins around their home.
Even more surprisingly, a report from the Wall Street Journal noted that Americans collectively toss out a staggering $68 million in coins annually, treating them as little more than refuse.
“If you lost a $100 bill you’d look for it. If you lost a $20 bill you’d look for it.
If you lost a book you’d look for it,” said Robert Whaples, an economics professor at Wake Forest University, to the Journal. “But a penny, you’re just not going to look for it.”
So, What’s a Penny-Hoarder to Do?
While taking your pennies to the bank for cash might seem like the obvious choice, it’s not always the easiest. Many banks, like Capital One and PNC, phased out their coin machines years ago due to low customer usage. TD Bank also removed theirs after an investigation uncovered issues with incorrect dollar amounts.
However, there’s still a reliable option: Coinstar. With nearly 24,000 kiosks located in major retailers nationwide, Coinstar has processed over 800 billion coins, making it a convenient way to convert your spare change into cash.
McColly emphasizes that by returning coins to the economy, we can reduce the need for the U.S. Mint to spend money on new production.
“They’re metal,” he stated. “And they have a long and useful life.”
Why Did the Penny Get the Axe?
The decision to discontinue the penny ultimately came down to cost. Trump’s order aimed to halt the production of coins that literally cost more than their face value to produce.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!”
Trump shared in a social media post. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
While many economic experts agree that the penny is no longer essential, some have expressed concerns that the abrupt halt, without clear federal guidance, could create challenges for businesses.
“We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go,” commented Jeff Lenard of the National Association of Convenience Stores.
So, before you dismiss those little copper coins, remember: they might just be your ticket to a surprising bit of extra cash. Start digging through those couch cushions and dusty jars – your future self (and your wallet) will thank you!