A new study says it doesn’t make ‘cents’ to keep the penny.
In fact, only 37 per cent of Canadians still use the coin for purchases, found a survey conducted by Desjardins Group.
According to economists with the group, there are about 20 billion pennies in circulation — amounting to about 600 per Canadian.
But between 2001 and 2005, the government issued an average of 816,000,000 pennies annually — indicating that consumers tend to stockpile pennies or simply throw them away.
To keep the pennies in circulation, Canadians are losing about $130 million per year in production, storage, transportation and various costs, say the economists that conducted the research.
They are proposing that Canada withdraw the penny, following in the steps of Australia and New Zealand.
Francois Dupuis, vice-president and chief economist at Desjardins’ Economic Studies Department, said he doesn’t think removing the penny will increase prices.
“Cash transaction amounts would be rounded symmetrically to the nearest five cents. For example, transactions where the final price would be $9.98, $9.99, $10.01 or $10.02 would go for $10. Those of $10.03, $10.04 or even $10.06, would go for $10.05,” Dupuis said.
The poll, which surveyed 658 people from Quebec, Ontario and the Atlantic and Western provinces, found that Canadians use more valuable coins more often.
Research showed that loonies and toonies are used by 66 per cent of Canadians making purchases. However, quarters are only used by 58 per cent of the population while dimes and nickels are used 50 per cent of the time.
Fifty-six per cent of respondents said they collected pennies and usually gave them away to children, charities or at church.
The study also found a gender difference when it comes to loose change — 44 per cent of women use their pennies for purchases compared to 31 per cent of men.
Lastly, the study found a wide gap between different age groups. Only 13.6 per cent of young people (aged 18 to 25) use pennies for purchases compared to 55 per cent of older respondents.
