Do You Miss Having Pennies in Your Change?

For many, the era of pennies is coming to a closeor has already done so. People around the world are faced with the challenge of dealing with increasingly small denominations of currency. While some may miss the convenience of coins, the transition to a cashless society offers its own set of perks and challenges.

A Great Relief

Divesting from small change can provide a great relief. As a Canadian, I have found it increasingly convenient not to carry coins or bills for many months. In the aftermath of the COVID-19 pandemic, the shift back to cash transactions might be a distant memory, with digital payments becoming the norm.

Dividing Currency for Simplicity

Interestingly, some countries have addressed the issue of insignificant change by dividing their currency. For instance, Israel implemented a currency split, converting 10 Israeli Shillings (IS) into 1 New Israeli Shekel (NIS). This kind of structural change streamlined transactions and eliminated the need to carry extremely small denominations.

A World Without Pennies

Many people, including myself, no longer miss pennies. In Canada, the decision to phase out pennies has been well-received. Fifty years ago, when salaries were much lower and purchasing power was different, pennies were still useful. However, in today's economy, pennies are nothing more than a nuisance.

Plastic Over Coins

With the widespread adoption of digital payments and plastic (credit and debit cards), the need for pennies has diminished. In fact, the comfort of not having to carry coins or bills for most transactions is more than welcomed. The convenience of a seamless payment experience is a considerable advantage in a cashless society.

Why Eliminate Pennies?

For some, the elimination of pennies is a welcome relief. In Canada, for example, the government made a decision to phase out pennies due to the high cost of production and the minimal value they carry. It is estimated that the production of pennies now costs more than their face value. This move aligns with trends in other countries that have followed suit, eliminating the need for these almost valueless coins.

Are Pennies Essential?

Those who save pennies in a jar or use them frequently might disagree. For most people, pennies are essentially useless. It's difficult to find something that costs exactly a nickel or a penny in many regions. In fact, many vending machines and bus payment systems no longer accept low-denomination coins.

Adapting to a Cashless Society

With the move towards a cashless society, debit and credit cards have become the norm. In many places, small corner stores and even most bus operators now accept these forms of payment. As a result, carrying cash is no longer necessary, providing a more streamlined and convenient experience.

Conclusion

The end of pennies marks a significant shift in how we handle transactions. While some may miss the sense of tangible currency, the move towards a cashless society offers unparalleled convenience. As technology continues to evolve, it's likely that even more countries will follow the lead of nations like Canada, phasing out minimal-value coins in favor of more efficient payment methods.