How To Help Teach Kids About Money When The Penny Is Phased Out

4/12/2026

You may have heard that the United States will no longer be producing pennies. They’re being phased out.

If you’re a teacher, this might raise a few questions: Do we still teach pennies? Do we change how we teach money? What does this look like in the classroom?

The good news is you don’t need to panic.

Canada went through this in 2012 when our pennies were phased out, and the transition was smoother than many of us expected. Over time, both everyday transactions and classroom instruction continued just fine.

What Actually Changed (and What Didn’t)

Even without pennies in circulation, cents haven’t disappeared. Prices are still written to the exact cent, and debit and credit transactions are still exact.

The main change is in cash transactions, which are now rounded to the nearest five cents. That means kids still need to understand how money works. They just apply that understanding differently in cash situations.

Do We Still Need to Teach Pennies?

Yes. Even if pennies aren’t used in cash transactions, they are still important for learning. Kids benefit from understanding that:

10 pennies = 1 dime
Money follows base ten patterns
Small values combine to make larger ones

These ideas support place value, addition, subtraction and regrouping.

Pennies are also helpful when introducing rounding. Seeing pennies in front of them allows them to decide: “Is this closer to the previous nickel or the next one?” This visual makes rounding meaningful.

What Might Change in Your Teaching

Instead of removing pennies completely, consider how they are used. Kids can:

Use pennies to build understanding
Then practice working without them

This approach helps kids connect both concepts without confusion. Counting exact totals and then rounding for cash transactions gives them a clearer picture of real-world money use.

Supporting This in the Classroom

To make this transition smooth, provide opportunities for kids to practice:

Rounding to the nearest five cents
Comparing exact totals and cash totals
Solving simple money situations without pennies

Activities like these help them see how money is actually used, and make the transition feel natural. For example, you might use resources I created for rounding up or down and working with money without pennies to give them hands-on practice.

rounding up and down with money American

The change with the penny is just one part of a bigger picture. Money is starting to look different in students’ lives, and many children don’t regularly handle cash.

In my next post, we’ll explore how to teach money when kids aren’t getting as much hands-on experience outside of school. We’ll focus on helping them recognize coins and bills, count money, and make change while building the skills they need before moving into real-world earning and saving.