Although his likeness graces the $100 bill, it was Benjamin Franklin who coined the phrase “a penny saved is a penny earned.” Alabama gas station owner Edmond Knowles is a living testament to the merit of Franklin’s words.
Earlier this year, Knowles cashed in his extensive penny collection, nearly 1.4 million single-cent coins. As he left the bank, having exchanged his weighty parcel of pennies, he walked away with almost $14,000 in the paper version of our currency.
Collected over the course of 38 years, Knowles filled four 55-gallon drums and three 20-gallon drums with the shiny copper coins.
While the total number of pennies Knowles gathered was record-breaking, each of us is equally capable of amassing a similar fortune in coins or small bills. George White, a spokesman for Coinstar (operators of vending-style coin counting machines) noted that the pennies in Knowles’ collection numbered about the same as what might pass through someone’s hands over the years. “Ed just took the time to close his hand.”
Perhaps there’s a lesson for all of us in the value of patient saving, not matter how small the amount. Imagine what you might be able to save if you regularly exercised the muscles in your hand and hung on to the pennies, nickels, dimes and quarters you touch in a single day.
Or, better yet, think about how many one-dollar bills pass through your wallet in a week. By setting aside those single George Washington’s, the money will add up quickly and you can avoid the pesky fees that some banks charge for converting unrolled coin into cash.
It’s also important to note that Knowles’ penny collection didn’t earn him a dime of interest over the years. While he did collect a record number of coins, which may well earn him a spot in the Guinness Book of World Records, his barrel savings didn’t allow him to take advantage of the power of compound interest to grow his fortune.
It’s estimated that nearly $10 billion in coins are sitting idle in American homes, cars and buried under couch cushions. While the total amount of out-of-circulation currency falls far short of paying off the national debt, the coins do represent an untapped resource for many of us. A little conscientious saving could produce some serious dividends in the future.
Following Franklin’s advice may add up to some Benjamins, after all.
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