In the last federal budget, the Conservative government announced that it was doing away with the pennies. I jumped for joy and was, once again, proud of my country’s monetary policies.
In the intervening months however, the general public have gone nuts about three main misconceptions over the abolition of the penny. Here are the three most common things that I’ve heard:
1- We have to use all our pennies because they will be worthless soon: A penny is a penny is a penny. It is a value of currency that will be worth exactly $0.01 until legislated otherwise. Saying that the penny will be worthless soon is like saying that we can’t use our $1 and $2 bills — or $0.50 coins — or old coinage. While it is admirable to donate your pennies to charity, why?
Also, this “news” story that circulates about how The Mint will “continue to accept pennies from stores” is ridiculous! It’s money! You will be able to go to the store, the bank etc. and use your pennies. They are still money.
2- Electronic transactions will still be to the penny: If your transaction comes to $4.57 and you pay by debit/credit, you will be charged $4.57. If you pay with cash, you’ll pay $4.55.
3- You will not be ripped off (ok, maybe you will be…): A common thing that I hear is that, once the penny is abolished, stores will round up their prices to take advantage of the situation. Ok, so that might happen. And you know what? It’s a penny. Is it worth it to continue minting coins which cost 160% of their value? Plus, like when the UK decimalized, there will always be people who take advantage of coinage changes from which they can profit.
So. Amsterdam has no penny and they’re fine; Australia has plastic money and no penny and they’re fine. Canada will be fine. Chill.
Subscribe to my posts
Tagsadvance advanced basic bills budget budgeting economics emergency fund europe fun gaol setting Giveaway goals goal setting guest post intermediate investing life Links london math meme money pit motivation paycheques personal quebec random random thoughts recap review school spending recap sponsored stop b!tching tricks vacation weekly updates winnipeg
ING Orange Key
$100 000 goal3.61%