Nickel for your thoughts?



I love learning new words. I am not sure how I made it through nearly six decades of living without hearing the word seigniorage! Just looking at the word impresses me! What is seigniorage, you may ask? Seigniorage is the difference between the face value of coins or currency and the government’s cost to produce said coin or currency. This is not a new concept, but it is getting media attention as the federal government considers doing away with the penny.



The bottom line is that if the seigniorage is lower than the actual exchange value of the currency or coin, it is profitable to keep making/minting that currency. Pennies don’t pass the seigniorage test. Most sources say it costs approximately three cents to make a penny (some claim that it is up to four cents). According to APMEX.com, nickels don’t pencil either. They state that it costs about $.08 to make a nickel. Not that I have heard any discussion about discontinuing nickels yet, just thought I’d bring it up.

This concept got me thinking, what else do we pay for that isn’t worth what it costs? Granted, opinions will vary on this topic, and different generations will value things differently – but let’s chat. Cable TV Subscriptions – I cut the cord long before streaming was even a thing, so it is hard for me to believe that cable TV subscriptions are still in existence at all, but apparently, they are. Is there anything even worth watching on cable? Plus, how do you binge on traditional cable?

Lottery Tickets – government-sponsored gambling is not new to the scene. But with the odds of winning the lottery at about one in 300 million, is the so-called ticket even worth the cheap paper it is printed on? According to YouTuber Johnny Harris, in 2021 Americans spent over $100 billion on lottery tickets. Wow…how’s your ROI?

The Sunshine Tax – as my years continue to steamroll by me, I am starting to wonder if the high cost of SoCal living in general is worth it. I have already lost two of my young adult children to other states due to the exorbitant costs of living here locally. As I pay, pay, pay I have to also consider that I am hundreds of miles away from our four growing grand babies who are evenly split between Idaho and North Dakota.

So that goes to the debit side on the Golden State’s ledger right next to the high costs of homes, gas, food, and electricity. As the Clash once said, “Should I Stay or Should I Go?” While we ponder these deep philosophical questions, it might be wise to dig up that old jar of pennies you have stashed in the back of your closet. I would spend them now before they are worth nothing at all!

Who knows, you might be able to get half a dozen eggs with them!