Circulate Coins! Enlist Kids!

Lesson for Kids on Metal Currency

I have here a lesson you can teach your kids in this essay. Please share this with anyone who home-schools or supplements their kids education.

In case you have not heard, it costs the US Mint more money to make a penny and nickel compared to what they are worth in circulation (https://govtrackinsider.com/it-costs-2-to-make-a-penny-and-7-to-make-a-nickel-but-cents-act-could-bring-those-costs-down-aa6aabfc9a8b and https://www.nasdaq.com/articles/coins-cost-more-to-make-than-theyre-worth-and-the-u.s.-mint-is-looking-for-solutions)! In fact, there are people who hoard copper pennies merely for their copper value (https://coins.thefuntimesguide.com/hoard-copper-pennies/).

While there are solutions to parts of this problem, an easy solution is to make certain coins stay in circulation so other people can use such coins which would extend the life and usage of the coins. The exception is true coin collectors, known as numismatic collectors, who collect specific coins for their rarity or uniqueness and such coins are worth more than their metal content and face value. Merely finding a silver coin will give you a quick profit from coin collectors as the silver is worth far more than the face value (https://www.coinstudy.com/silver-coin-values.html).

However, I am stymied by how many people have a jar, can, or whatever holding lots of coins. A friend gave me a ride in his car. He commutes a lot so I expected some litter from fast food places and convenience stores, but I was stunned at how many coins were spewed out all over the vehicle. I bit my tongue to not say anything but I wanted to offer to clean out his car if he would let me have the coins! Put the coins back in circulation and fewer coins would have to be made.

In the past, banks and other institutions have offered penny buyback programs (https://www.pahomepage.com/news/eyewitness-to-history/eyewitness-to-history-penny-shortage/). This is proof of the need for coins, but such buybacks are rare, and yet the US Mint continues to expend lots of excessive money in making pennies and nickels.

Yet, kids love to gather coins. So, we, adults can turn this into a lesson for them in understanding face value versus real value as well as plant the seed to appreciating economics. Get them to turn in their coins!  Yes, I know you probably are not going to open up a bank account for your kid, but you can incentivize them to save pennies and other coins and trade them in as an investment. Create your own buyback program and offer a dime for every 5 pennies they get. Offer a dollar for every 9 dimes they get. Offer two quarters for every 9 nickels they get. Your child will start learning how poorly people treat the penny and how many people willingly abandon their pennies if not flat-out give them to your kid. Of course, you will have to be on the guard for the relative dumping a gallon jug of pennies on your kid! But most likely, your kid will acquire an eagle’s eye for discarded pennies at school and in the various parking lots.

In addition, as an adult, you can scrutinize the coins for any irregularities or rarity which may mean the coin is extremely valuable. You can take such coins to a few coin collectors to evaluate the coin. Your penny may be worth 30 cents or $30 or $300 dollars. Some pennies with “wheat ears” on the back can gain you a modest return of 5 cents per penny. You should make a point of profiting off such collectible coins, if not collecting them yourself. 

So, what to teach your kid when those coins become dollars and they want to spend them? I suggest you have them register and track their dollars with “Where is George?” at https://www.wheresgeorge.com/ On this site, you can track that dollar you are about to spend and see how far it travels! You and your kid will learn how far currency circulates around the world.