Harris: Make every penny count in May and every day!
By Charlestien Harris, Retired Financial Counselor at Southern Bancorp
Some people may look for pennies – especially if they’re on the ground – and pick them up. Others may carry a found penny for good luck or put the first penny they receive in their pocket. Either way you look at it, every penny you earn has a place in your finances.
You may not know that National Lucky Penny Day is observed annually on May 23 – I didn’t either! While the penny’s value is often debated in the news – whether to continue minting it or not – it still plays a significant role in our everyday lives through paychecks, savings accounts, expenses, and other financial uses.
Today, due to inflation, a penny doesn’t buy much. In fact, the metal value and cost of minting a penny exceed its face value. That said, let’s explore a few ways you can save some “pennies” by making small adjustments to how you think about them!
- Learn the penny saving trick. What is the penny-saving trick, you ask? Your first thought might be that it’s easy to save a penny, but here’s the real trick:
- Start by saving $0.01 on day one, $0.02 on day two, and continue adding one more penny each day. By the end of the year, you’ll have saved exactly $667.95.
- Learn how to save your pennies. Make saving a daily habit. Set aside time each day to add your pennies to a savings jar or account. Designate a special container – it could be a mason jar, a gallon bucket, or even a piggy bank. Encourage family or friends to join in and make it a group activity. Once you’ve collected enough coins, roll them and deposit them into your savings account.
- Learn the round up challenge. The round-up challenge involves rounding up your everyday purchases to the nearest dollar and saving the difference.
For example:- Buy a drink for $0.99? Save $0.01.
- Buy a coffee for $2.89? Round up to $3.00 and save $0.11.
Southern Bancorp offers a Round-Up Savings option with your debit card. Every time you swipe, it automatically rounds up to the nearest dollar and deposits the difference into a separate savings account.
- Learn to look for ways to save extra pennies. Take every opportunity to save money – every penny adds up! Here are a few ideas:
- Adjust your thermostat
- Limit how often you eat out
- Cancel unused gym memberships and magazine subscriptions
- Use coupons for regular purchases
- Get creative – there are countless ways to save!
- Learn to discover creative uses for the penny. I did not know this: pennies can be used to keep flowers fresh by dropping one in the bottom of a vase. Copper is a natural fungicide that prevents fungi from growing in the water. Research explains that copper fungicides work by releasing copper ions, which compromise fungal cell membranes and prevent spore germination. Another interesting use I discovered in my research is that pennies minted before 1982 have a high percentage of copper, which may just be enough to deter slugs from attacking your plants. You can scatter pennies around your garden beds as a natural, eco-friendly pest control. These two ideas can save you extra pennies by not having to purchase costly pesticides or plant food.
- Learn tojust start the process. If a penny saved is a penny earned, how can I become rich by saving pennies? JUST START! You can’t become rich until you start, and the hardest step is often the first one. Changing your mindset is key. Thinking that pennies have no value is misleading—because:
- 5 pennies = a nickel
- 10 pennies = a dime
- 25 pennies = a quarter
- 100 pennies = a dollar
What could you do with an extra dollar? Pennies add up faster than you think!
Pennies are disappearing but smart money habits are still meaningful just by starting small. These moves can help you stretch every cent. It’s difficult to save pennies daily without knowing your income and what you’re spending. Budgeting can give you an idea of where your money is going. Every cent has a place and knowing where to place it is essential to good money management.
For more information on this and other financial topics you can email me at charlestienharris77@gmail.com or call me at 662-624-5776.
Until next week – stay financially fit!
Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.
