By Shmuel Shayowitz
In an era of new Government administration focused on cutting costs, President Trump’s recent announcement to discontinue the penny may seem like a minor footnote in financial news. “For far too long the United States has minted pennies, which literally cost us more than 2 cents,” Trump wrote in a post to his Truth Social platform. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
Interestingly, the Talmud anticipated this development centuries ago. The sages teach in Sanhedrin 97a, “Ein ben Dovid ba ad shetichleh prutah min hakis” – “The son of David (Moshiach) will not come until the small coin disappears from the pocket.” Classic commentators like Rashi, Maharal, and the Vilna Gaon interpret this as an indication of financial hardship, economic instability, and even the erosion of kindness.
Others, like Rabbeinu Bachya and the Chazon Ish, to name a few, take a more literal view – that the disappearance of small change is a sign of redemption. We hope and pray that we are witnessing the start of this. However, given that this is a financial column and not a Talmud class, I thought I would focus on what the “disappearance of the penny” means for the average consumer.
The phasing out of the penny is a symptom of a larger issue: rising costs and the steady loss of purchasing power. A penny used to buy something meaningful. Today, it is practically worthless. This is inflation in action – and it affects more than just pocket change. If your savings account earns 0.5% interest while inflation rises at 3-5% per year, you’re losing money without realizing it. You must invest in assets that outpace inflation – stocks, real estate, and other inflation-protected securities. Keep only enough cash in savings for short-term needs; put the rest to work in growth investments.
Another consideration is, don’t ignore the “Pennies.” The Talmud also teaches, “Prutah prutah mitztarefet” (Bava Batra 9b) – “small coins add up.” The same principle applies to personal finances. Micro-expenses – a daily coffee, unused subscriptions, small impulse buys – can quietly drain hundreds or even thousands of dollars yearly. You need to audit your recurring expenses and cancel unnecessary ones. Use round-up savings apps like Acorns to invest your spare change automatically. Challenge yourself to save every dollar possible – because small savings add up.
Furthermore, perhaps the end of the penny signals the shift to a cashless, digital economy. Credit cards, mobile payments, and even cryptocurrency are reshaping how we handle money. Are you financially prepared for this new reality? Learn how to manage and optimize digital banking tools. Learn how to automate your payments and savings. And most importantly in an increasingly digital world – do your research and protect yourself from identity theft and fraud. I cannot tell you how many stories I hear about cyber fraud and bank hacks. Don’t forget to talk to your teenage kids about this, too!
Perhaps a final and equally important piece of advice: The Vilna Gaon is quoted as saying that the disappearance of the penny could reflect a decline in charitable giving. When times are tough, people tend to tighten their wallets – it’s an understandable reaction. However, as Jews, we know that generosity is a cornerstone of financial blessing. Set up automated charitable donations – such as via DailyGiving,org so that charity remains a consistent habit. Recognize and live your life knowing that helping others leads to greater financial abundance.
The disappearance of the penny is more than a symbolic event – it’s a warning. At the very least, it’s a warning that the economic landscape is changing. Those who fail to adapt will feel its impact the most. By making smart investments, cutting unnecessary expenses, embracing financial literacy, and continuing to give generously, we can turn our pennies into prosperity. So, the real question now is: how will you make every penny count?
Would you rather have 10 million pennies that you can’t trade or deposit in a bank or $25,000? Please email or message me to let me know your choice! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.
Shmuel Shayowitz (NMLS#19871) is a highly regarded Real Estate & Finance Executive, Writer, Speaker, Coach, and Advisor. He is President and Chief Lending Officer of Approved Funding, a privately held national mortgage banker and direct lender. Shmuel has over twenty years of industry experience, holding numerous licenses and accreditations, including certified mortgage underwriter, licensed real estate agent, residential review appraiser, and accredited investor, to name a few. Shmuel has successfully navigated through many changing markets and business landscapes, making his market insights and experience well-coveted within the real estate industry. He can be reached via email at [email protected].
