The penny’s slow fade: what it means for Grand Rapids and beyond

For generations, the humble penny has been a quiet companion in pocket change, coffee cans, and charity jars. But in 2025, the United States has finally started to let go of its smallest coin. The U.S. Mint recently confirmed that it has placed its final order for penny blanks, meaning no new pennies will be made once the current stock runs out.

According to the Mint's 2024 annual report, each penny now costs about 3.7 cents to produce, making it one of the most expensive coins to keep in circulation. The Treasury Department estimates that eliminating penny production could save tens of millions of dollars per year, money that could be redirected toward more essential government services.

Less Change, More Cards

In a world where cash is already on the decline, the loss of the penny may not sting as much as it once would have.

According to the Federal Reserve, only about 14% of all consumer payments in the U.S. were made with cash last year — and that number is shrinking every year.

Locally, that trend is consistent. At grocery stores and gas stations around Grand Rapids, card readers and mobile pay options have replaced jingling coins. "We don't see much loose change anymore," said a local cashier at Super One Foods. "I'd say most people just tap their card or phone."

During a recent Kwiktrip stop in Hermantown, I experienced my first "round up" to the nearest nickel. Many other businesses already round cash totals to the nearest nickel when needed, following the lead of countries like Canada, which stopped using its penny in 2013 and reports millions in annual savings. The rounding applies only to cash transactions — card and digital payments still charge the exact amount.

What Happens to Old Pennies?

If the penny officially disappears, it will still remain legal tender, but circulation will slowly dwindle as people hang onto them or cash them in. According to the U.S. Mint, there are currently over 130 billion pennies in circulation nationwide — but nearly half are estimated to be sitting in jars, drawers, and coffee cans rather than in active use.

Local banks and coin-counting machines at places like Walmart and Super One will continue to accept pennies as long as they're in good condition. Many area charities, including food shelves and youth programs, say they'll keep collecting them for as long as people still bring them in.

Local Impacts and Reactions

For most shoppers and small businesses in Grand Rapids, the change won't cause much disruption. "It's not like you can buy much with a penny anymore," said an Itasca County resident. "It's more nostalgic than practical."

However, some businesses — especially those that rely on coin-operated systems — may feel the impact. Laundromats, car washes, and vending machine owners may need to make adjustments or reprogram their machines to handle new rounding systems.

A Tiny Coin With a Big Legacy

The penny was first introduced in 1793, making it the nation's oldest continuously produced coin. President Abraham Lincoln's image has been on the front since 1909 — and many Americans still see it as a small piece of history worth keeping.

Groups like Americans for Common Cents continue to lobby for the coin's survival, arguing that removing it could lead to price rounding that unfairly affects consumers. But economic studies — including one from the Congressional Research Service — show that rounding generally balances out over time, with about as many transactions rounding down as up.

The Bottom Line for Northern Minnesota

While the penny won't disappear overnight, its gradual fade marks the end of an era. As cash becomes less common and the cost of production keeps rising, even rural areas like northern Minnesota are moving toward a future where exact change just isn't needed as much anymore.

So if you've got a jar of pennies collecting dust at home, now might be the time to cash them in. They may soon become a small piece of history.