Loose Change: Managing your Coins

Managing loose change may seem like a minor task, but it can significantly impact your financial well-being with a smart strategy for saving money in the long run. Given the current shortage of materials and decline in coin production, it’s even more critical to stay on top of your loose change. Here are some useful tips on how to manage your loose change effectively and contribute to the reduction of coin production expenses.

Coin jars

One of the easiest ways to manage your loose change is to start a coin jar. Place a jar or container in a central location in your home and start tossing your loose change in it. It may not seem like much, but over time, those coins can add up to a significant amount of money.

In some major cases, building up a huge pile of coins can be a challenge with a wonderful payoff. Back in 2015, a man in the US state of Louisiana, Otha Anders, cashed in over 500,000 pennies he’s been saving for 45 years. The pennies were enough to fill up 15 five-gallon water jugs and took his bank five hours to process them all – tallying the USD equivalent of $7446 in 2015 Australian dollars.

Use a coin counter

If you’re someone who deals with a lot of loose change, consider investing in a coin counter. A coin counter can help you quickly and accurately count your coins, saving you time and effort.

Some models, for example, like the one by AusCount, are designed to organise coins by putting them in specific value bins. You can find coin counters at most office supply stores or online retailers.

Roll your coins

Rolling your coins is a great way to keep them organised and ready for deposit at the bank. You can purchase coin wrappers at most banks or office supply stores, with specific denominations for each roll. Simply fill the wrappers with your coins, seal them up, and take them to the bank.

Use a coin-sorting machine

If you have a large amount of loose change and don’t want to spend the time sorting it yourself, consider using a coin-sorting machine. These machines are available at many banks and supermarkets and will count your coins and give you cash in exchange.

Donate your coins

If you’re looking for a way to give back, consider donating your coins to a charity or nonprofit organisation. Many organisations have coin donation programmes, and your loose change can help make a difference in someone’s life.

Reducing coin production costs

In addition to managing your loose change, there are several ways to help reduce coin production costs. Here are some tips:

Digital payments

With the rise of digital payments, it’s becoming increasingly easy to manage your money without having to deal with loose change.

Many businesses have started to adopt cashless payment options. Some finance experts claim that lowering use of loose change for over the counter transactions may expedite the business and customer traffic.

Using digital payments can help reduce the need for coins. The less demand there is for coins, the less need there is for the production of new coins.

Consider using a digital payment platform like Apple Pay or Google Pay to make purchases instead of using cash.

Coin recycling

Many countries have coin recycling programmes that allow people to exchange their coins for new ones, reducing the need for new coin production. In many cases, those countries go so far as to firmly crack down on coin smuggling rings, ensuring the metal in the coins stays at home for circulation.

Recycling materials in coin production not only helps reduce costs, but is also more environmentally friendly.

To put this in the Australian perspective, the Royal Australian Mint lamented that it usually costs 20 cents to make a single two-dollar coin and 15 cents to create a 50-cent coin. But alternative options had to be considered as prices of copper and nickel went up after Russia started its invasion of Ukraine. Mint CEO Leigh Gordon added that while metal prices have since dipped, even a five-cent coin costs at least 12 cents to make.

Use a budgeting app

There are many budgeting apps that can help you track your spending and savings, including your loose change. These apps can automatically round up your purchases to the nearest dollar and transfer the spare change to a savings account or investment account.

A finance app like UBOMI may factor well into handling your loose change, as part of a larger effort to save every last deener. The UMONEY feature allows you to keep track of your bank balance, especially if you’ve just deposited a huge amount of coins. There may be a small victory in there just being able to set aside the coins in the bank.

If you liked our “Loose Change: Managing your Coins” and find it useful, check our blogs regularly for more information to get updates on UBOMI’s budget app and expense tracker.

DISCLAIMER: This article is for informational purposes only. UBOMI has no relationships with any company mentioned in this article.