The Penny's Death Signals a Bigger Problem: Your Money Is Losing Value

The U.S. stopped minting pennies in November—and honestly? Most people won’t even notice. A coin that costs 3.69 cents to produce but is worth 1 cent was always destined to fail. But this isn’t really about cents and nickels. It’s about inflation.

Here’s the uncomfortable truth: the same force that killed the penny is quietly eroding your wallet right now. When inflation hit 9.1% in 2022, that wasn’t just a headline—it meant your purchasing power dropped hard. Your salary didn’t keep up. Your savings lost real value.

The Fed targets 2% inflation to fuel growth, but when it spikes, even your cash in the bank becomes a liability. A regular savings account earning near-zero interest? You’re effectively getting poorer every month.

Here’s what actually works:

• High-yield savings accounts: 4-5% returns help offset inflation
• Stocks historically return ~7% above inflation—the best long-term hedge
• TIPS bonds: Automatically adjust for inflation
• Increase income: Raises, side hustles, new skills

The penny may be gone, but inflation isn’t going anywhere. The question isn’t what happens to loose change—it’s whether your wealth grows faster than prices do.