💵 Economics and policy · Beginner · Policy resolution

Resolved: The United States should require cash purchases to be rounded to the nearest five cents.

The U.S. Mint struck its last circulating penny in November 2025, but pennies are still legal tender. Should the country make rounding of cash totals to the nearest nickel the rule?

Background

The one-cent coin had cost more to make than it was worth for years: the Mint reported a cost of 3.69 cents per penny in fiscal year 2024, and 13.78 cents per nickel. On November 12, 2025, the Mint struck the final circulating pennies in Philadelphia. The Mint said the penny remains legal tender and that businesses can still price goods in one-cent amounts. About 300 billion pennies were estimated to be in circulation. [1][2]

With fewer new pennies reaching stores, some businesses have begun rounding cash totals. No federal law yet sets how rounding should work. Other countries offer examples: Canada stopped distributing pennies in 2013 and rounds cash totals (not card payments) to the nearest five cents, and the United States itself retired the half-cent coin in 1857. [3]

Economists have studied whether rounding would cost shoppers money. Their results differ; see below. [3]

Where the facts themselves are disputed

Would rounding to the nearest five cents cost shoppers money?

  • One study (Lombra, 2001) estimated rounding would cost consumers about $600 million a year, because so many prices end in 99 cents and would round up.
  • Another (Whaples, 2007) found that once sales tax is added, final totals are spread evenly, so rounding up and down roughly cancels out.
  • A study of Canadian grocery prices (Cheung, 2018) found rounding about neutral for multi-item purchases but slightly costly for one- and two-item purchases.

Key terms

Legal tender
Money that must be accepted for paying debts. Pennies remain legal tender even though no more are being made for circulation.
Symmetric rounding
Rounding totals ending in 1, 2, 6 or 7 cents down and those ending in 3, 4, 8 or 9 up, so ups and downs can balance.
Seigniorage
The difference between a coin’s face value and its cost to make. When a coin costs more than its face value, seigniorage is negative.
Unbanked
Households without a bank account, who are more likely to pay in cash.

Both sides at their strongest

Each argument is written the way its best advocates would make it, followed by the strongest answer from the other side. Use them to build your case and to prepare for the other one.

Affirmative

A clear national rounding rule protects shoppers and businesses now that new pennies aren’t being made.

  1. A1 A national rule prevents confusion and unfair rounding.

    Why Without a rule, each store decides for itself, and some may always round up. One symmetric rule, the same everywhere, tells shoppers what to expect and stops quiet overcharging.

    Evidence Canada’s 2013 rounding guidelines (symmetric, cash only, applied to the total, not to each item) and reports of U.S. stores adopting different rounding practices after the last penny was struck.

    Best answer The negative answers that a federal mandate is a heavy tool for a few cents, and that states, stores or market pressure can set fair practices without Congress.

  2. A2 Rounding the total is roughly neutral for consumers.

    Why Sales tax and multiple items scatter final totals evenly across all the cent endings, so rounding up and rounding down balance out over many purchases.

    Evidence Whaples (2007, Eastern Economic Journal) on rounding with sales tax; the Canadian experience since 2013.

    Best answer The negative points to Cheung’s 2018 finding that one- and two-item purchases do cost consumers slightly, and those small purchases are common for people who pay cash.

  3. A3 It finishes the job of retiring a coin that costs more than it’s worth.

    Why Pennies cost several times their face value to make and slow down cash transactions. A rounding rule lets the economy stop needing pennies, so the old supply doesn’t have to keep circulating.

    Evidence U.S. Mint unit-cost figures (3.69 cents per penny in FY2024); the Mint’s 2025 announcement; the precedent of retiring the half-cent in 1857.

    Best answer The negative replies that production has already stopped, so the savings are already captured; rounding adds nothing to them.

  4. A4 Rounding saves time at the register.

    Why Counting out pennies in change takes time for cashiers and customers; across billions of cash transactions, small delays add up.

    Evidence Research summarized by the Richmond Fed noting the time cost of handling pennies, and studies of merchants choosing convenient prices to avoid coins.

    Best answer The negative argues the time saved per purchase is tiny, and cash is a shrinking share of payments, so the benefit is small.

Negative

A federal rounding mandate isn’t needed, and it would fall hardest on people who rely on cash.

  1. N1 Rounding can cost the people who most depend on cash.

    Why Low-income and unbanked households pay in cash more often, and they often make small purchases of one or two items, where rounding is less likely to balance out.

    Evidence Lombra (2001) on rounding costs; Cheung (2018) on one- and two-item purchases; FDIC surveys of unbanked households and their use of cash.

    Best answer The affirmative answers that symmetric rounding on the total keeps any cost to pennies a year, and a national rule protects those households better than store-by-store rules would.

  2. N2 Pennies are still legal tender, so there’s no need to force rounding.

    Why About 300 billion pennies are already in circulation. Stores can keep giving exact change while that supply lasts, and customers can choose to pay exactly.

    Evidence The U.S. Mint’s November 2025 statement that the penny remains legal tender and prices may stay in one-cent increments.

    Best answer The affirmative replies that the old pennies are unevenly spread, sitting in jars, so stores still run short; a rule is needed for when they do.

  3. N3 Rounding raises demand for the nickel, which costs even more to make.

    Why If cash totals end in 0 or 5, stores need more nickels for change. The Mint loses more on each nickel than it did on each penny.

    Evidence U.S. Mint FY2024 cost of 13.78 cents per nickel; analyses of coin demand after penny elimination.

    Best answer The affirmative argues that rounding mostly replaces pennies with fewer coins overall, and that changes to the nickel’s metal content can cut its cost.

  4. N4 Congress doesn’t need to set a rule for every store.

    Why Businesses already compete on price and fairness; states regulate pricing practices; and a federal mandate creates a one-size rule that may not fit every kind of business.

    Evidence State consumer-protection laws on pricing; the Mint’s guidance leaving pricing to businesses; examples of voluntary store rounding policies.

    Best answer The affirmative answers that money is a national matter, and fifty different state rules would confuse shoppers who cross state lines.

Strawman or steelman?

A strawman is a weak copy of the other side’s view, easy to knock down and unfair to the people who hold it. A steelman is that view at its strongest. Answer the steelman, and you’ve answered the real argument. (More on steelmanning.)

Affirmative

Strawman “They just want to take money from poor people’s pockets.”

Why it’s unfair Supporters propose symmetric rounding of the total precisely to avoid a hidden charge, and argue it is roughly neutral.

Steelman Now that pennies aren’t being made, a single fair rule (round the total, symmetrically, cash only) is the best way to protect shoppers from inconsistent store practices.

Affirmative

Strawman “They want to ban pennies and make everyone throw them away.”

Why it’s unfair The resolution is about rounding totals; existing pennies would remain legal tender.

Steelman Rounding lets stores operate without pennies while people who have them can still spend them.

Negative

Strawman “They’re just nostalgic about Lincoln’s face on a coin.”

Why it’s unfair Opponents’ main concerns are cost to cash-dependent shoppers, nickel costs, and whether a federal mandate is needed.

Steelman Rounding can cost low-income cash users on small purchases, and with pennies still legal tender, a federal mandate may be unnecessary.

Negative

Strawman “They think the government should keep losing money on every penny forever.”

Why it’s unfair Penny production has already ended; opponents are arguing about rounding rules, not about restarting production.

Steelman The savings from ending production are already won; the question is whether mandatory rounding adds benefits that outweigh its costs.

Weak arguments to avoid

Affirmative

  • “Nobody uses cash anymore anyway.” Millions of Americans still use cash, and the people who do are the ones this policy affects most. Saying they don’t matter weakens your own case.
  • “Rounding never costs anyone a single cent.” Rounding up does cost a few cents on some purchases; the claim is that ups and downs balance over time. Overstating it invites an easy answer.

Negative

  • “Rounding will cost families hundreds of dollars a year.” Even the study with the highest estimate works out to a few cents per person per week. Exaggerating the cost hurts your credibility.
  • “Getting rid of the penny will lead to getting rid of all cash.” That’s a slippery slope with no evidence for the later steps.

Questions for cross-examination

Ask the Affirmative

  1. Does your rule round each item or the total?
  2. What happens on a one-item purchase that ends in 9 cents?
  3. Would card payments be rounded too?
  4. If stores still have pennies, must they round anyway?

Ask the Negative

  1. If no rule exists, what stops a store from always rounding up?
  2. Isn’t the penny supply in stores running down now that production has stopped?
  3. How much would rounding cost a typical cash shopper in a year?
  4. Would fifty different state rules be easier for shoppers?

Reading on both sides

Read at least one source from each side before you debate. Look up each source’s author and publisher too: who wrote it is part of the evidence.

Background and overviews

Both sides in one place

Mostly Affirmative

Mostly Negative

Practice this topic

Sources for the background

  1. United States Mint Hosts Historic Ceremonial Strike for Final Production of the Circulating One-Cent Coin, U.S. Mint (2025-11-12). Accessed 2026-10-25.
  2. Penny Costs 3.69 Cents to Make in 2024, Nickel Costs 13.78 Cents, CoinNews (from the U.S. Mint's annual report) (2025-02-10). Accessed 2026-10-25.
  3. Will the Penny Get Pitched? (Tim Sablik), Federal Reserve Bank of Richmond (2021-01-14). Accessed 2026-10-25.

Teddy Rook Book doesn’t take a side on this resolution. Updated 2026-10-25.

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