What Can You Actually Buy With a Penny Today?

The United States penny, the smallest denomination of American currency, remains a familiar coin in circulation. Despite its widespread presence, many people question what a single cent can actually purchase in today’s economy. The coin’s purchasing power has diminished considerably over time, leading to discussions about its continued relevance.

Current Purchasing Power

Today, a single penny holds very little direct purchasing power. It is nearly impossible to buy a standalone item for one cent, as prices for most goods and services significantly exceed this amount. While a penny cannot independently acquire goods, it often serves a practical purpose in facilitating transactions by enabling exact change or rounding out sales tax. For instance, some hardware stores might technically price individual small items like nails at a very low cost. Similarly, a one-cent stamp is available from the U.S. Postal Service.

Historical Value

The penny’s current limited utility contrasts sharply with its historical purchasing power. In the early 20th century, a single penny could buy common items such as a loaf of bread, a newspaper, or a piece of candy. A penny held enough value to purchase basic necessities or small treats. Inflation has steadily eroded the penny’s value, meaning that items once easily affordable for one cent now cost significantly more. A penny in 1950 could buy much more than it can today.

Alternative Uses

Despite its diminished transactional value, the penny has found various alternative uses outside of direct commerce. Many individuals use pennies for decorative projects, such as creating unique floor coverings or tabletops. Pennies can also serve as educational tools for teaching children about counting or basic financial concepts. Some people repurpose them for practical household applications, like adding weight to curtains or even as a makeshift screwdriver for slot-head screws.

The Cost to Produce

The United States Mint incurs a cost to produce each penny that exceeds its face value. In 2024, the cost to mint and distribute a single one-cent coin was 3.69 cents. This marks the nineteenth consecutive year that the production cost of a penny has been higher than its face value. This means the U.S. government operates at a loss on penny production, with reported losses totaling millions of dollars annually.