Tag: money

Retiring the Penny

My father collected coins all his life. Some of these coins were put in folders or protective pockets, but many were stored in old jars. As a child, I liked to look through his many jars of coins for ones to add to my coin folders.  My maiden name is Whitman, and it was a source of pride that we always used Whitman coin folders for our collections. 

Today, I have several jars of Dad’s coins waiting to be rolled up and deposited in the bank or saved in coin folders. This picture shows two of these jars. I likely have thousands of pennies that Dad collected, and their sentimental value is worth much more than their actual value.

I’ve been thinking about pennies since President Trump announced that he would stop the production of pennies.  Some people fear that retiring the penny will cause prices to rise as businesses round prices up.  Others point out that it costs the U.S. $192 million per year to mint pennies at a price of nearly 4 cents per penny.  I wonder if the value of pennies will increase as they become rarer, so I did a bit of research.  Here’s what I found.

  • Officially, the U.S. does not have a coin called a penny.  Our one-cent coin is called the cent. The British have pennies, so our forefathers did not want to name a coin “penny.”
  • It cost 3.69 cents to mint a one-cent coin in 2024.
  • The cent was first minted in 1793; the Lincoln cent was introduced in 1909.
  • Eleven other coins and currency have been retired, including the half-cent coin, the two-cent coin, and the twenty-cent coin.
  • The penny will not go away anytime soon, as there are approximately 250 billion in circulation.
  • Prices will not necessarily round to the nearest 5 cents.  Most payments are made by check, electronic funds transfers, and payments apps, which will still be able to accommodate rounding to two decimal places.
  • Pennies are not likely to increase much in value. So, my 2,000 (estimated) pennies will still be worth about $20.00

Do you think it’s a good idea to retire the penny? Please feel free to comment and share your thoughts.

This article was published in my quarterly newsletter, along with articles on Scriptures that help you feel secure in times of financial stress, reducing spending by making it painful, and valuable Beanie Babies. If you would like to receive my quarterly newsletter on Honoring God with Your Money, please complete the form on the Contact page or send me an email to susan.ball5@aol.com

Control Spending for Those You Love

Your health and relationships can be affected by your spending and budgeting habits. For the sake of those you love, you should prioritize managing your budget and living within your means. Buying your loved one the perfect gift on Valentine’s Day is a way to express love and provides a great sense of satisfaction unless you cannot afford the gift. 

When the credit card bill arrives, and you do not have the money in your checking account to pay it, it leads to debt and stress. If you have planned and set some money aside, you may be able to take the money out of your savings. Otherwise, you pay a portion of the bill and carry a balance forward.

If spending beyond your means is rare, you likely can recover with a few months of cutting back on “extras.”  However, if it is a regular occurrence, your balance will increase each month due to accumulated interest and new purchases.

In America, credit card balances currently top more than $1.13 trillion. Transunion estimates that the average American has credit card balances of $6,088, and Money magazine estimates the average non-mortgage debt at nearly $21,800. Many Americans are stressed about their finances. This stress is harming their health and their relationships.  

Financial stress leads to physical challenges, including anxiety, depression, high blood pressure, migraines, aches and pains, and difficulty sleeping. These physical ailments can make you irritable and have wild mood swings. All of which is hard on those you love. You and your spouse may fight about money. You may find yourself avoiding the company of others and become more and more withdrawn from social life. This is not a healthy way to live.

It is essential to recognize that debt is a form of bondage. The Bible says, “The rich rule over the poor, but the borrower is servant to the lender.”  Proverbs 22:7

The antidote to debt and stress is to take control of your finances. If you need a place to start, try working through the following suggestions to climb out of debt. Write them down and put them on the frig. Keep it in a prominent place in the house where you will see it and be reminded and encouraged each day. 

  • Immediately forego all unnecessary expenditures.
  • Work with your spouse to create a budget you can both live with.
  • Designate a sum of money to pay toward existing credit card balances.
  • Track your spending so you are aware of where your money is going.
  • Include some “fun” spending in your budget. If your budget is too strict, you will feel punished, and it will be challenging to stick with it.
  • When you need to make a significant purchase, research the item for the best price.
  • Employ the “24-hour rule” for non-essential purchases. If an item in the store tempts you, wait 24 hours. Ask yourself if you need the item and what you will give up in order to afford the item.

Here are some suggestions on how to plan to avoid temptations to spend beyond your budget.

  • Make a grocery shopping list and stick to it. Determine how much you can spend and don’t exceed your limit. Some people use cash and only take the budgeted amount to prevent overspending.
  • Pack lunches and snacks for work. Brew coffee, take it with you, or buy coffee pods and make coffee at work.
  • Invite friends over for home-cooked meals and game or movie nights rather than going to expensive restaurants and expensive activities.
  • Avoid surfing Internet shopping sites that might tempt you to buy things you do not need.
  • Tape television shows and fast forward through commercials to further avoid the enticement of slick advertisers.

This Valentine’s Day show your true love for your spouse and family members by committing to reduce your debt and lower your financial stress. Your physical health and relationships will improve if you do.