🌅 So Long, Penny

SOURCE

Treasury Department

WHAT TO KNOW

• The U.S. Mint produced its final penny on November 12, bringing an end to 232 years of the once iconic one-cent coin. The Treasury Department expects to save around $56 million a year by ending production.

WHY IT MATTERS

• It cost the Mint 3.69 cents to produce a single penny in 2024, a 20% increase from the year prior. Nickels are even worse, costing 13.78 cents to produce. The Mint says the unit cost of both coins has exceeded their face value for 19 consecutive years. For context, it costs 5.76 cents to produce a dime and 14.68 cents to produce a quarter.

CONNECT THE DOTS

• Elon Musk’s DOGE initiative recommended ceasing production of the penny back in January, leading Donald Trump to order the end of the coin the next month. Retailers and banks describe the phase-out as abrupt and confusing, as it came with no guidance from the federal government, leading some retailers to ask customers to use exact change and some banks to actually start hoarding the coins.