A couple of months ago it was announced that the penny will be removed from circulation, ultimately the death of the penny was upon us. This announcement was made in March 2012 in fact, and the last penny
The removal of the penny would save taxpayers an estimated $11 million annually. The cost to make a penny is roughly 1.6 cents! We are actually paying more for what the penny is actually worth. I am surprised this phase-out wasn’t implemented long ago.
With that said, it was recently announced that the penny will be around till 2013.
Why are we keeping the penny till 2013?
The fact is, the holiday season is approaching, and as we all know, the winter holds an important buying season for retailers.
The penny was originally planned to go out of circulation in the fall, however retailers and other small businesses complained that this transition would be a burden just before the holiday season.
For normal consumers, a penny free marketplace would be great, however when you put yourself in the shoes of the retailers, then it would be a burden to handle the recent change.
With the penny being removed form circulation in 2013, the buying season should not be in such a high volume, allowing the transition to go much smoother.
What should I do with my pennies?
The fact is, they are still going to go out of circulation, most people will probably start ignoring the domination more as the months come closer to when it is out of circulation.
One brilliant idea I read about was having a “penny drive”. This is great for a charity organization to run, because in the end someone handing over any pennies they may have won’t hurt them financially nor would it be a huge hassle. Ottawa is encouraging charities to take advantage of this extra time, and it would be a great idea to do so as holding a penny drive might be a great fall fundraising venture. In fact, schools can hold a penny drive and donate the money to a charity.
What do you think of the penny sticking around until 2013?