What is a Penny?
A penny is a unit of currency that is equal to one hundredth of the main unit of currency in various countries. It is the smallest denomination of currency commonly used for everyday transactions.
Origin of the Penny
The term ‘penny’ comes from the Old English word ‘penig,’ which originally referred to any coin. In the United States, the penny is officially called a ‘cent.’
Types of Pennies
- United States penny (cent)
- British penny (pence)
- Canadian penny
Value of a Penny
Despite its small value, pennies can add up over time. For example, saving just one penny a day can amount to over $3.60 in a year.
The Penny Debate
There has been an ongoing debate about the usefulness of the penny, with some arguing that it costs more to produce a penny than it is worth. In fact, several countries have phased out their low-denomination coins in recent years.
Case Study: Canada
In 2013, Canada decided to stop minting pennies due to their high production costs. The decision was made to round cash transactions to the nearest 5 cents, resulting in savings for the Canadian government.
Statistics
- In 2019, it cost 1.99 cents to produce a penny in the United States.
- Approximately half of all pennies produced in the U.S. are used just once before being discarded.
