🪙 Why Is the Penny REALLY Going Away?

🧠 What’s Going On?

The penny is one of the most familiar coins in the United States — but it may soon stop being made.

In this Curious Professors current-events explainer, we break down why the penny is being discontinued, who makes that decision, and what it means for families, classrooms, and everyday spending — all explained for kids.

🪙 What Is the Penny — and Why Does It Matter?

The penny is worth one cent and is the smallest value coin used in the United States. It has been part of American money since the late 1700s, and today’s penny featuring Abraham Lincoln has been in circulation since 1909.

For a long time, the penny made sense. It helped people give exact change and represented the smallest unit of money. But over time, the economy changed — and the penny didn’t.

💸 Why Is the Penny Being Discontinued?

One of the biggest reasons the penny is going away is cost.

Today, it costs more than one cent to make a penny. The metals used to produce it — mostly zinc with a copper coating — have become more expensive. That means every new penny loses money for taxpayers.

Because millions of pennies are made each year, those small losses add up quickly.

🏛️ Who Decides If the Penny Goes Away?

The decision to discontinue the penny involves several parts of the U.S. government, including the United States Mint, the Treasury Department, and Congress.

This change wasn’t sudden. The penny has been debated for years as lawmakers and economists considered whether it still serves a useful purpose.

🧾 What Happens If the Penny Is Discontinued?

If the penny stops being made, prices will not suddenly increase.

Cash purchases would be rounded to the nearest nickel, while debit and credit card payments would remain exact. Other countries have already done this with little impact on everyday prices.

🌍 Has This Happened Before?

Yes. Countries like Canada and Australia discontinued their pennies years ago.

Their experiences show that life continues normally, transactions remain fair, and people adjust quickly to using fewer coins.

⚖️ Why It Matters

The penny debate isn’t just about money — it’s about how governments balance tradition, efficiency, and public resources.

Some people feel nostalgic about the penny and its place in American history. Others believe money should be practical and cost-effective. This conversation helps students understand how civic decisions are made.

📊 Fast Facts About the Penny

• The penny is the longest-running U.S. coin still in circulation

• It costs more than one cent to produce

• Existing pennies remain legal tender

• Several countries have already eliminated low-value coins

• Prices do not automatically rise when pennies disappear

  
  

💬 Classroom Discussion Question

Should countries keep traditions like old coins even when they cost money — or is it better to change when something no longer works?