With the U.S. Treasury moving to phase out pennies due to rising production costs, even small change is losing its place in everyday life. This shift reflects a broader trend: physical cash is becoming less practical.
At the same time, inflation continues to chip away at purchasing power. That makes it more important than ever to adopt smart financial habits that help your money work harder.
From better budgeting tools to inflation-resistant investments, these seven money moves can help you build resilience, stay ahead of rising costs, and protect your financial future — no spare change required.
Pro Tip: Gold can offer a strong defense against economic downturns. If you’re concerned about inflation or market shocks, consider safeguarding your savings by opening a gold IRA.
1. Focus on investments that compound
As the value of small denominations like pennies decreases, it’s important to focus on investments that grow over time. Compounding interest allows your money to earn more money without any additional effort.
Consider investing in a high-yield savings account or low-cost index funds that automatically reinvest dividends. The earlier you start, the more your investments could grow as compound interest works its magic.
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2. Invest in physical assets
While pennies may be losing value, tangible assets such as real estate, precious metals, and fine art can still provide a store of value. With inflation and economic uncertainty, investing in physical assets can be a great hedge against the weakening value of currency.
If you’re looking for a way to diversify your investment portfolio, consider investing in real estate or precious metals. Unlike cash, these assets often appreciate over time.
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3. Use cash-back and reward programs
Why settle for just using cash when you can make it work harder for you? Credit cards and debit cards offering cash-back rewards are one of the most effective ways to maximize your purchases.
These rewards allow you to earn money back on everyday purchases, which can add up significantly over time.
Look for cards that offer increased rewards on categories like groceries, dining, and travel, or use specialized programs to earn cash-back on everyday expenses while avoiding interest.
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4. Round up your purchases for savings
With pennies becoming less relevant, rounding up your purchases to the nearest dollar can help you save without thinking about it.
Many apps and banking services now offer a feature that automatically rounds up your purchases and deposits the difference into a savings or investment account.
This small change can add up quickly. For example, if you round up each purchase by just $0.50, it could add hundreds to your savings by the end of the year.
Pro Tip: Automating your savings is smart — so is getting expert advice on how to grow it. If you have over $150,000 in investments, consider talking to a professional financial advisor. WiserAdvisor is a free service that will match you with a pro in your area.
5. Maximize your digital payments
As physical coins become less relevant, digital payments are taking over. From Venmo and PayPal to mobile wallets like Apple Pay, digital transactions are faster and more convenient.
Plus, many payment platforms offer rewards for everyday purchases, allowing you to earn cashback or discounts while you spend.
Consider switching to a rewards-based digital payment system to make your everyday spending work harder for you. By embracing mobile payments, you can easily track your spending and take advantage of benefits that physical currency can’t offer.
Pro Tip: Already upgrading how you spend? It might be time to upgrade how you manage your savings, too. If you have over $150,000 in savings, consider talking to a professional financial advisor. Zoe Financial is a free service that will match you with a pro in your area.
6. Start a high-yield savings account
A high-yield savings account is one of the smartest places to park your cash in today’s low-interest environment. With interest rates on savings accounts still relatively low, high-yield accounts offer a competitive way to grow your money.
Look for accounts with no monthly fees and high interest rates, and consider automating transfers to build your savings without thinking about it. It’s a safe and effective way to protect your money from inflation.
Pro Tip: Maximize your savings with SoFi Checking, which offers 3.8% interest and a $300 signup bonus — a great way to grow your emergency fund and protect it from inflation. (Offer may change.)
7. Switch to digital-only budgeting
With coins and cash becoming less of a priority, switch to digital-only budgeting tools that help you track your finances in real-time.
Apps like Mint and YNAB (You Need A Budget) allow you to monitor spending, categorize purchases, and set financial goals from your smartphone.
By monitoring your finances with digital tools, you can easily spot areas to cut back on spending and make adjustments without the hassle of keeping track of physical bills or coins.
Pro Tip: Stay on top of your finances with ease. If you’ve got at least $100,000 in investments, use SmartAsset to get matched with up to three vetted financial advisors in your area, helping you manage and optimize your digital-only budgeting strategies.
How to stay ahead of the curve
As the penny becomes obsolete, it’s clear that the financial landscape is changing rapidly.
By taking proactive steps now to embrace digital payments, automate savings, and invest wisely, you can stay ahead of the curve and make the most of your money.
With interest rates still fluctuating and inflation pressures in play, these seven smart money moves can help you protect and grow your wealth.
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