What to Do With Pennies: From Saving to Spending

Pennies often accumulate in various corners of our homes and vehicles. While a single penny holds minimal individual purchasing power, a collection can represent surprising value. Deciding what to do with loose change involves considering convenience, potential fees, and personal financial goals. Exploring the various avenues for managing pennies can transform them from a nuisance into a useful financial resource or creative material.

Exchanging Pennies for Value

Converting accumulated pennies into usable currency can be achieved through several methods. Coin-counting machines in grocery stores offer a convenient way to process large amounts of change quickly. Companies like Coinstar typically charge a service fee, which can range from 11.9% to 12.9% of the total value, sometimes with an additional transaction fee. These fees are generally waived if you opt for an eGift card from a partner retailer or donate the funds to a charity.

Another option involves taking pennies to a bank or credit union. Policies vary significantly among financial institutions regarding coin-counting services. While some larger national banks may require customers to roll coins before depositing, many local community banks and credit unions offer free coin-counting machines for their members. Non-account holders at these institutions might encounter a fee, which can range from a small flat charge to a percentage of the counted amount, potentially up to 15%. Contact your bank or credit union beforehand to understand their coin deposit policies, including whether coin wrappers are provided.

For smaller amounts, using pennies directly for purchases at retail stores can be a straightforward method. Many self-checkout machines accept loose change, allowing you to empty your coin jar directly into the payment slot. While paying with many pennies at a traditional cashier can inconvenience others in line, using them for small transactions, such as covering exact change, is generally acceptable and helps reduce coin accumulation.

Saving and Donating Pennies

Accumulating pennies can serve as a simple strategy for savings or charitable contributions. The classic “penny jar” or piggy bank method provides an accessible way to save without significant effort. Consistently adding loose change allows small amounts to grow into a substantial sum for specific savings goals, such as a treat, vacation fund, or unexpected expense. This approach cultivates a habit of saving, demonstrating how small denominations can contribute to financial objectives.

Beyond personal savings, pennies can make a meaningful impact when donated to charitable organizations. Many charities participate in coin collection drives, where the collective effort of small donations can result in significant contributions. Direct donations of loose change to charities are widely accepted, and some organizations may have their own coin-counting facilities. When donating cash, including pennies, to an IRS-recognized 501(c)(3) public charity, contributions may be tax-deductible if you itemize deductions.

For a donation to qualify for a tax deduction, it must be made to a qualified organization, and generally, you cannot receive goods or services in return. The Internal Revenue Service sets limits on cash contributions that can be deducted, typically up to 60% of adjusted gross income for most public charities. Keeping accurate records, such as charity receipts, is important for tax purposes. Even when using coin-counting kiosks for charitable donations, a processing fee, usually ranging from 7.5% to 10%, might be deducted before funds reach the charity.

Creative and Practical Uses for Pennies

Beyond their monetary function, pennies offer surprising versatility for creative and practical applications around the home. Their uniform size and copper color make them a unique medium for artistic endeavors. Pennies can create intricate mosaic patterns for tabletops, backsplashes, or even decorative flooring, providing a durable and visually interesting surface. They can be incorporated into craft projects, such as jewelry, picture frames, or sculptures, adding metallic texture and a vintage aesthetic.

In a practical sense, pennies can serve as makeshift tools for everyday tasks. Their flat, thin profile makes them suitable as shims to level wobbly furniture or appliances. A small stack of pennies can provide a convenient, temporary weight for holding down papers or light objects. Furthermore, pennies are often used in simple games, such as coin tosses or stacking challenges, offering entertainment without their monetary value being the primary focus.