# Why do we round cash to two decimal points? **URL:** \ **Category:** Factual Questions\ **Created:** [March 20, 2021, 11:39pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328 "2021-03-20T23:39:31Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![Banksiaman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/banksiaman/32/3334_2.png) [@Banksiaman](https://boards.straightdope.com/u/Banksiaman)\ **Post date:** [March 21, 2021, 8:49pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/41 "2021-03-21T20:49:58Z")
> [@DesertDog](#): > > Never gonna happen here, You see, the [company](https://en.wikipedia.org/wiki/Jarden_Zinc_Products) that makes the zinc planchets used for US 1-cent pieces ~~greases a lot palms~~ makes political donatons on both sides of the aisle. Couldn’t they divert their energies and zinc, precious ziiiinc into making $0.99 coins, which still represent most electrical goods sale prices? ---
**Author:** ![DesertDog](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desertdog/32/11503_2.png) [@DesertDog](https://boards.straightdope.com/u/DesertDog)\ **Post date:** [March 21, 2021, 10:24pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/42 "2021-03-21T22:24:23Z")
> [@Siam\_Sam](#): > > Not every monetary system has subdivisions. In Japan, it’s just yen. No cents equivalent. Currently, yes, but once upon a time the _yen_ was divided into the 1/100 [_sen_](https://en.wikipedia.org/wiki/Japanese_yen#Introduction) and 1/1000 _rin_. > The _New Currency Act_ of 1871 stipulated the adoption of the decimal accounting system of _yen_ (1, 圓), _sen_ (​1⁄100, 錢), and _rin_ (​1⁄1000, 厘), with the coins being round and manufactured using Western machinery. The yen was legally defined as 0.78 [troy ounces](https://en.wikipedia.org/wiki/Troy_weight) (24.26 g) of pure silver, or 1.5 grams of pure gold (as recommended by the European Congress of Economists in Paris in 1867; the 5-yen coin was equivalent to the Argentine 5 [peso fuerte](https://en.wikipedia.org/wiki/Argentine_peso#Gold_and_silver_pesos,_1881%E2%80%931969) coin[[16]](https://en.wikipedia.org/wiki/Japanese_yen#cite_note-minthistory-18)), hence putting it on a [bimetallic standard](https://en.wikipedia.org/wiki/Bimetallic_standard). After WWII the yen was devalued to 360 per dollar until it started to float in 1971. When I was on Okinawa forty-five years ago, 1-yen coins were in circulation. They were about the size of a nickle but thicker, and made of aluminum. ---
**Author:** ![Yllaria](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/yllaria/32/3452_2.png) [@Yllaria](https://boards.straightdope.com/u/Yllaria)\ **Post date:** [March 21, 2021, 10:52pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/43 "2021-03-21T22:52:09Z")
For some kinds of forward planning and budgeting, project estimates are rounded to the nearest thousand dollars. Until the project has a design, the estimate really can’t be more exact than that. Some grant applications don’t even want you filling in the zeros. You fill in estimates for different parts of the project in a column titled: COST ($1,000s). ---
**Author:** ![Richard\_Pearse](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/richard_pearse/32/13144_2.png) [@Richard\_Pearse](https://boards.straightdope.com/u/Richard_Pearse)\ **Post date:** [March 21, 2021, 11:54pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/44 "2021-03-21T23:54:55Z")
When filling in Australian tax returns, the numbers are all rounded down to the dollar, I.e., any cents are truncated. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [March 21, 2021, 11:55pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/45 "2021-03-21T23:55:43Z")
I think you do the same thing when doing your tax return in the United States. ---
**Author:** ![OldGuy](https://avatars.discourse-cdn.com/v4/letter/o/3bc359/32.png) [@OldGuy](https://boards.straightdope.com/u/OldGuy)\ **Post date:** [March 21, 2021, 11:56pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/46 "2021-03-21T23:56:21Z")
No they’re rounded but to the nearest dollar not truncated. ---
**Author:** ![PatrickLondon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/patricklondon/32/4422_2.png) [@PatrickLondon](https://boards.straightdope.com/u/PatrickLondon)\ **Post date:** [March 22, 2021, 10:02am UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/47 "2021-03-22T10:02:00Z")
> [@penultima\_thule](#): > > There’s no love (or remembrance) of the farthing? Yes, here - or at least, sentimental reminiscence of its rather pretty design - [the wren, our smallest bird](https://www.historytoday.com/archive/farthings-last-day). ---
**Author:** ![Mark\_Finn](https://avatars.discourse-cdn.com/v4/letter/m/34f0e0/32.png) [@Mark\_Finn](https://boards.straightdope.com/u/Mark_Finn)\ **Post date:** [March 22, 2021, 11:28am UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/48 "2021-03-22T11:28:48Z")
As well as farthings - the Brits at one time had fractional farthings: 1/4, 1/3, and 1/2. e.g.: [GB & Ireland – Quarter-Farthings | The Old Currency Exchange is a specialist dealer and valuer of Irish & GB coins, tokens and banknotes](https://oldcurrencyexchange.com/2017/05/29/gb-ireland-quarter-farthings/) ---
**Author:** ![Horatio\_Hellpop](https://avatars.discourse-cdn.com/v4/letter/h/e5b9ba/32.png) [@Horatio\_Hellpop](https://boards.straightdope.com/u/Horatio_Hellpop)\ **Post date:** [March 22, 2021, 12:53pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/49 "2021-03-22T12:53:06Z")
Aren’t stocks still sold at some irregular interval, like a third or a sixth of a cent? Rounded up, but a lot of purchasers do seem to buy in bulk… ---
**Author:** ![DesertDog](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desertdog/32/11503_2.png) [@DesertDog](https://boards.straightdope.com/u/DesertDog)\ **Post date:** [March 22, 2021, 1:22pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/50 "2021-03-22T13:22:25Z")
1/8 of a dollar or 12-1/2 cents. ---
**Author:** ![Limmin](https://avatars.discourse-cdn.com/v4/letter/l/f04885/32.png) [@Limmin](https://boards.straightdope.com/u/Limmin)\ **Post date:** [March 22, 2021, 1:42pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/51 "2021-03-22T13:42:31Z")
> [@SCAdian](#): > > May 2012. Australian 1¢ and 2¢ coins were removed from circulation in 1991; New Zealand did the same in 1990, and then did awway with the 5¢ coin in 2006. Sorry! I should have said “Commonwealth countries take the lead…” Never mind; I’m almost entirely accustomed to the USA being dead last in so many areas. ---
**Author:** ![iamthewalrus\_3](https://avatars.discourse-cdn.com/v4/letter/i/258eb7/32.png) [@iamthewalrus\_3](https://boards.straightdope.com/u/iamthewalrus_3)\ **Post date:** [March 22, 2021, 2:16pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/52 "2021-03-22T14:16:49Z")
Stocks haven’t been sold for fractional dollars for [20 years.](https://www.baltimoresun.com/news/bs-xpm-1997-06-06-1997157011-story.html) ---
**Author:** ![SCAdian](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/scadian/32/3292_2.png) [@SCAdian](https://boards.straightdope.com/u/SCAdian)\ **Post date:** [March 22, 2021, 2:28pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/53 "2021-03-22T14:28:30Z")
> [@Exapno\_Mapcase](#): > > When I was a kid pennies and nickels were valuable commodities. Penny candy. 5¢ candy bars. 12¢ comic books and snack cakes… ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [March 22, 2021, 2:34pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/54 "2021-03-22T14:34:58Z")
_10¢_ comic books. They didn’t rise to 12¢ until 1962. ---
**Author:** ![Dark\_Sponge](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dark_sponge/32/121_2.png) [@Dark\_Sponge](https://boards.straightdope.com/u/Dark_Sponge)\ **Post date:** [March 22, 2021, 2:52pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/55 "2021-03-22T14:52:39Z")
I remember happily noting a foreign country I was visiting (Guatemala maybe?) had only the equivalent of quarters as coins. Everything was rounded to quarter dollar values. I wish we’d adopt a similar system. ---
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [March 22, 2021, 3:36pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/56 "2021-03-22T15:36:39Z")
> [@bob\_2](#): > > That’s incorrect. The system was based on the penny, which was one pennyweight _(in troy weight) a unit of 24 grains or 1/20 of an ounce)_ . > > It took 240 of them to make a pound troy of silver so there were 240 pennies in a pound. Shillings, florins etc were just convenient multiples. That may be true for the original Carolingian currency that started the £sd system, but I don’t think it has been true for centuries. The penny has been minted exclusively in copper since the 17th century. The shilling continued to be in silver until well into the 20th century, and the pound was defined in terms of gold content after 1816 (and physically coined as such, in the form of the sovereign). So it was the pound and the shilling that were made of precious metal, not the penny, at a time when it was that metal that gave currencies their value. Under such circumstances I don’t find it convincing to say that the pound and the shilling are mere multiples of pence. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [March 22, 2021, 3:38pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/57 "2021-03-22T15:38:39Z")
Funny enough, right now while the CT frothers are in full froth about so many other things (thanks QAnon), this would be the ideal time for the US to kill every coin smaller than the 25¢. Mandate rounding the total on all cash transactions and it’d be done. Hell round to the nearest dollar ($1 minimum) and be done with stupid coins altogether. The US public is like a 5yo scared to slowly peel off the band-aid because it might hurt. Mom needs to just grab that sucker & pull. ---
**Author:** ![pulykamell](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pulykamell/32/3166_2.png) [@pulykamell](https://boards.straightdope.com/u/pulykamell)\ **Post date:** [March 22, 2021, 4:31pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/58 "2021-03-22T16:31:26Z")
> [@LSLGuy](#): > > The US public is like a 5yo scared to slowly peel off the band-aid because it might hurt. Mom needs to just grab that sucker & pull. Indeed. People will act like it’s the collapse of Western Civilization, CTers will definitely hop in with some nonsense on this topic, Trump and his army of dipshits will find a way to paint this as “un-American,” and some liberal plot to turn us into godless Commies, or something, you know Soros is gonna get shoehorned into this, others will complain that this will just cause every business to round up their prices and make things more expensive (probably some slight truth to that), etc. Knowing the American public, I can’t see any way of this happening without it being a total (mostly manufactured) shitshow. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 22, 2021, 4:33pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/59 "2021-03-22T16:33:53Z")
> [@LSLGuy](#): > > Hell round to the nearest dollar ($1 minimum) and be done with stupid coins altogether. Until you introduce dollar and two dollar coins, of course. 😛 ---
**Author:** ![pulykamell](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pulykamell/32/3166_2.png) [@pulykamell](https://boards.straightdope.com/u/pulykamell)\ **Post date:** [March 22, 2021, 4:42pm UTC](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328/60 "2021-03-22T16:42:07Z")
Up until about a decade ago, I used to love coins. Part of what I loved traveling around, especially pre-Euro, was the variety of coins I’d collect and some of their odder shapes (they’re not all round and some have an inset that is a different color than the outer diameter). The UK was particularly cool, because the pound wasn’t particularly big, but it was thick – it had some heft to it and would really hurt if you Nolan Ryaned it into somebody’s skull. But, better yet, it had value. I could actually buy something with that coin. Sometimes even two things. Now, screw it. I held on to the idea of coins because of vending machines, and I hated the ones that accepted bills and you’d have to play “take it, no you take it, no, I insist, you have it!, no really, I don’t want it, just keep it!” with because your dollar bill was left folded in your wallet for one microsecond too long and rendered no longer readable by the bill reader. But now we have modern tech, and many vending machines (and now even tire air machines!) have credit card readers. So off with the coins! Leave behind the quarter, if you must, but we need to get rid of all this change. I’ve literally thrown pennies and nickels into the garbage because I didn’t feel like plucking them out of my pocket detritus and finding the coin jar. [Previous page](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328.md?page=2) [Next page](https://boards.straightdope.com/t/why-do-we-round-cash-to-two-decimal-points/938328.md?page=4)