You may have heard the buzz: the U.S. is getting rid of the penny. While it’s not immediate, the day when the humble one-cent coin fades into history is approaching. Here’s what you need to know — and what it means for your wallet.

Why the Change?

Simply put, the penny costs more than it’s worth. It takes about 3.7 cents to make a one-cent coin, which means taxpayers lose money on every penny produced. With cash use on the decline and digital payments on the rise, the penny has become more expensive than practical.

The U.S. Treasury Department has placed its final order for penny blanks and expects to stop producing new pennies by early 2026, once the existing blanks run out. But don’t panic — existing pennies will remain legal tender, and the change will be gradual.

What Happens Next

• Pennies will stay legal to use. You don’t need to cash them in or throw them out. There’s no official recall or exchange program announced.
• Cash transactions may be rounded. When pennies are no longer available, stores will round cash totals to the nearest five cents. This rounding only applies to cash — debit, credit, and mobile payments will still be exact.
• Your day-to-day won’t change much. Most people use digital payments, and many prices already end in .99 or .05, so you might not even notice a difference.

The Bottom Line

Ending penny production will save the government money and simplify cash transactions. While it might feel strange to say goodbye to such a familiar coin, this small change reflects the way most of us already pay — faster, simpler, and mostly cash-free.