The End of the Penny — and What It Means for Our Communities

The Penny’s Final Chapter

In May 2025, the U.S. Treasury confirmed what many had long anticipated: the penny’s production has officially come to an end. The final U.S. penny was minted on November 12, 2025, closing a chapter that began in 1793. For more than two centuries, this small copper coin has carried a big cultural presence—tucked in change jars, dropped in donation trays, and passed between generations as a familiar reminder of everyday exchange. While digital payments have reshaped how we spend, the penny’s disappearance offers another reminder of how quickly the way we use money continues to evolve.

Why Is the Penny Being Phased Out?

For years, economists and policymakers have questioned the practicality of minting a coin that costs more to make than it’s worth, creating a quiet but persistent drain on federal resources. Each penny costs about 3.7 cents to produce, nearly four times its face value, resulting in annual losses of more than $85 million.

From the cost of minting each coin to its dwindling role in commerce, the move underscores a practical shift rather than a sentimental one. Combined with a continued rise in digital transactions and declining demand for small change, the penny’s role in modern commerce has steadily diminished. Businesses rarely rely on them for cash drawers, and consumers often find them collecting dust in jars rather than circulating through the economy.

The U.S. is not alone in this shift. The U.S. Mint’s decision aligns with a global trend—countries like Canada, Australia, and New Zealand have already retired their lowest denominations, transitioning smoothly to rounded cash systems. By following suit, the United States reduces unnecessary production costs without altering the value of everyday purchases. Importantly, every penny already in circulation remains legal tender indefinitely, and will continue to be accepted for payments across the country, ensuring that no one’s pocket change loses worth overnight.

This shift is less about taking something away and more about adapting to the way people already spend and save. The move signals a step toward greater efficiency, and it sets the stage for understanding how these small adjustments ripple through our daily lives.

How Does This Impact Everyday Transactions?

As pennies slowly fade from circulation, the practical impact will be felt most in face-to-face transactions. Businesses that still rely on cash sales may begin rounding totals to the nearest five cents when exact change isn’t available (e.g., $10.02 rounded to $10.00; $10.03 to $10.05). While this may sound like a major shift, most consumers will experience virtually no change—purchases made by card or mobile payment remain unaffected, and total costs will still balance out evenly over time.

For local shops and customers who prefer paying with cash, the transition will take some getting used to, but the goal is simplicity, not disruption. The U.S. Mint’s decision encourages efficient use of existing coins and reinforces the value of keeping them in motion. In essence, the penny’s gradual exit is about adjusting to the way money truly moves today—preparing communities for what comes next in managing their change and keeping commerce steady.

Keeping Coins in Circulation Locally

When new coins slow in production, the change already circulating in our towns becomes the backbone of daily commerce. Every coin sitting untouched in a jar or drawer is a piece of currency temporarily removed from the local economy. When multiplied across millions of households, that dormant change can make a noticeable difference for small businesses that rely on steady access to coins for transactions and cash drawers.

Temporary coin shortages, most notably during the pandemic, showed how quickly supply gaps can ripple through local economies—forcing stores to round more frequently or limit cash transactions altogether. Now, with fewer new coins entering circulation, the importance of reintroducing those idle pennies, nickels, dimes, and quarters into the financial system is greater than ever. Even a single jar of loose change can add meaningful supply to the local coin pool. Turning in loose change helps maintain balance in the local flow of cash, keeping transactions smooth and ensuring everyone can still pay and get change without interruption.

It’s a small but meaningful way to contribute to the health of the local economy. By simply exchanging what’s already in your home, you’re helping your community stay liquid and connected, supporting both neighborhood shops and everyday convenience for those around you.

BankSouth’s Role in Supporting the Community

BankSouth’s response to the penny’s discontinuation focuses on keeping the local economy moving to allow for as smooth a transition as possible. To support the community and its businesses, the Lake Oconee branch is waiving the fee for its coin-counting machine for non-customers through December 31, 2025. Normally, a 7% fee applies to non-customer transactions, but this temporary change makes it easier for anyone to bring in their spare change and help replenish the local coin supply.

This initiative isn’t just about convenience—it’s about ensuring that every cent continues to serve the community. By turning in coins that might otherwise sit idle, residents directly support small businesses and neighbors alike, helping keep day-to-day transactions smooth. It’s a small gesture with an outsized effect, one that shows how local action can sustain the strength and stability of a shared economy.