Once a symbol of spare change and small savings, the penny is now on its way to extinction. And nickels may not be far behind. For many Americans, this shift signals more than just the disappearance of small coins—it hints at a broader move toward a fully cashless society.
In 2022, nearly 40% of Americans reported never using cash at all. While older generations and lower-income households continue to rely on physical currency, the overall trend shows a rapid decline in cash usage. Retailers report that up to 95% of their customers now pay exclusively by card or digital methods.
Financial experts like Brad Ward and Jim Walker are weighing in on what this shift means. “Pennies are a hassle,” Walker says. “They just pile up in jars, and no one wants to deal with them. Honestly, with inflation, there’s little incentive to hold onto them.” Ward agrees, adding, “Change of all kinds just goes into a jar at home. But the bigger concern is how digital payments could worsen debt.”
Both Ward and Walker highlight the lack of financial literacy in the U.S. as a key factor in rising credit card debt. “Spending cash is like cutting yourself—you feel the pain immediately,” says Walker. “With credit, it’s like surgery. You don’t feel it until later, but the pain hits hard.” Ward points out that the ease of tapping a card or phone has led many to overspend and rack up high-interest balances.
While some Americans appreciate the convenience of digital transactions, others worry about the implications. “Going cashless might make tracking spending easier for some,” says Ward, “but it also means more debt for others and potential vulnerabilities in digital security.”
As the U.S. edges closer to a cashless economy, the conversation around financial literacy, spending habits, and digital security becomes more urgent. For now, the penny may soon be a relic of the past, but the bigger question remains: Is America truly ready to say goodbye to cash altogether?
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By: Fred Roggin
May 29, 2025
