Canadian- No More Pennies

jannieFebruary 5, 2013

I grew up in Buffalo; my grandfather was Canadian. I read the Buffalo News online every day. Today I read the Royal Canadian Mint will no longer be distributing penny coins to banks and businesses. All cash transactions will be rounded up or down. As an example, if you buy breakfast at Tom Hortons and your bill is $3.87 and you pay with a fiver, you get back $1.15. Canadians, how is the adjustment going for you?

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jasdip

I was going to post something to that effect as well.
None of the stores have done it yet. I was in a store yesterday and I paid with pennies.

They won't be getting any more pennies, but they will have some in stock still.

Home Depot has said that they are going to round everything down to the nearest nickel.

They said it costs. 1.6 cents to make a penny. And I was wondering how you guys were doing, if you've heard anything about your penny.

There are even news stories about the nickel being next. Geez, anything to get more money. Although someone was in Australia a number of years ago and he said that everything is 10cents and it makes it much easier to calculate and pay.

    Bookmark   February 5, 2013 at 10:08AM
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colleenoz

Actually we still have 5 cents in Australia but we haven't had 1 cent and 2 cent coins in years. Haven't really noticed much effect, other than lightening the load in the change purse.
Since everything's rounded up or down depending on how close it is to the 5 cent, I think you get some ups, some downs and in the long run it all averages out. (Note, it's the total that gets rounded, not each individual item.)
Plus if you pay with a direct debit card, you pay the exact amount.

    Bookmark   February 5, 2013 at 10:57AM
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susan_on

They're saying that stores will take pennies, but won't be giving them back. I haven't been inconvenienced. I'll be kind of glad to get rid of them.

    Bookmark   February 5, 2013 at 12:05PM
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marie_ndcal

Curious, some of us in the lower 48, have Canadian money we save to use when we travel. What do we do with our pennies? I don't have many but hate to loose those I do have. Wonder if our government will do the same, even though they have talked about it.
Marie

    Bookmark   February 5, 2013 at 12:36PM
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susan_on

You can still spend them here, you just won't get any back. If I were in your place and sopped here, if something came to $2.15, I would give them a Tommie and fifteen pennies. I would get rid of them like that.

    Bookmark   February 5, 2013 at 1:48PM
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jasdip

LOL, Susan, are you typing on a tablet?? Tommie, sopped....hahahaa.

Susan is saying a Toonie, and fifteen pennies. Marie, you may not have toonies and loonies, in your stash.

Edited to correct a spelling mistake

This post was edited by jasdip on Wed, Feb 6, 13 at 8:02

    Bookmark   February 5, 2013 at 2:23PM
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cynic

I can't envision this happening in the US for a long, long time. Not many people would even want to propose it. If proposed by a person of one party, the other party would scream GOVERNMENT INTERFERENCE!!!!!, and if proposed by someone in the other party, the opposition would scream IT HURTS THE POOR!!!!! or some other equally politicized arguments.

    Bookmark   February 5, 2013 at 4:14PM
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patti43

They've talked about it on and off for years in the States, but nothing ever comes of it. I wish they would get rid of them! Pardon the pun, but they're not worth a plug nickel. (I have no idea what a plug nickel is, either.)

    Bookmark   February 5, 2013 at 5:29PM
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susan_on

Lol... yes, Jasdip, I typed that on a tablet. Glad you were able to translate :)

    Bookmark   February 5, 2013 at 6:11PM
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joyfulguy

If you have the ones minted before about 1994, they're almost pure bronze (mostly copper) and worth more than a penny in today's market ... but the ones minted after that are steel with a thin coating of bronze ... so not worth much.

On a nation-wide phone-in on Sunday afternoon on our national radio, someone on the prairies said that he'd been making money on his for years: when he needed a washer for small bolt, he just drilled a hole in a penny, as a real washer cost 3 cents!

Actually ... I think that it was illegal to interfere like that with government property (and end up stealing it).

Currency is only available to us on loan: it ain't ours!

If the total of purchases, plus tax, comes to anything at or under e.g. $1.02, it's rounded down to $1.00. At $1.03 and above, it's usually to be rounded up to $1.05.

One smart-ass went on a website where they were discussing it to suggest that one deposit $0.03 into one's bank account - that they'd have to round it up to $0.05, so he'd gain 40% ... and I objected, saying that a 2 cent return on a base of 3 cents ... was an increase of 66% ... and that after not having to wait for a year.

But... sorry - dealing with the electronic side of things, the rounding-up and rounding-down aren't operational, as the exact amounts can be shown: it's only the physical situation where it applies.

So - some are saying that there'll be an increased use of credit (read "debt") cards when making purchases.

ole joyful

    Bookmark   February 5, 2013 at 7:53PM
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kathleen44

YOU can keep spending with pennies but they won't make anymore.

I have gotten a zillion from businesses I noticed, guess they are anxious to get rid of them fast.

As someone mentioned it will do alot more people in that already are living poverty or below poverty.

And kids that do those donations in pennies and everyone brings in their pennies,that has done of help to many people and places.

Now what?

People will not bring in bunch of nickels, dimes or quarters, they need the money themselves to live on.

But doing some pennies are better to give.

I don't know how many times I have loved those pennies in helping me out in getting things.

    Bookmark   February 5, 2013 at 10:36PM
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jemdandy

From what I read, pennies are still legal tender in Canada. Its just that no more will be minted, and businesses have been advised to prepare for the day when the smallest coin will be 5 cents. That will happen when there are not enough pennies. Financial computations will still be done to the nearest cent, for example, interest bearing bank accounts and sales tax amounts. Rounding will be done on the final sum.

I predict that Canadian pennies will soon dissappear from circulation. Coin collectors and hoarders will soon deplete the supply. Coins in best shape will disappear first, followed by coins that are more worn.

There is another possibility. Canadians will merely use USA pennies and continue as before. The US will experience a leakage of pennies across the border. This will accelerate the move to eliminate pennies on the US side.

    Bookmark   February 6, 2013 at 3:59AM
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bee0hio

Considering how much it costs to mint pennies (well over 1 cent ... it's a HUGE total) I have long thought that our US gov't should drop them from circulation ... just as Canada is now doing.

But it is amazing to me how sentimentally "attached" people are to a penny & use that as a "valid" reason to keep the penny. Also amazing how illogical some peoples' reasons for keeping the penny, but they will decry other forms of gov't waste. To me it's a no brainer, get rid of the bulky, costly, valueless penny!

    Bookmark   February 6, 2013 at 9:27AM
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joyfulguy

A while ago, when this was announced, when I visited one of the churches that I frequent, whose minister is Rev. Matthew Penny ...

... I asked his wife if she were going to get rid of her penny, as well.

She said that she definitely was not planning to do that.

(I forebore asking her whether she considered her penny as more or less as useless as it appeared that our coin has become).

ole joyful

    Bookmark   February 6, 2013 at 4:42PM
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