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An introduction to the different types of currency we use to buy things every day.
Imagine you are at a toy store and see a cool robot you want to take home. How do you tell the shopkeeper you want to trade for it without giving them your shoes or your lunch?
A long time ago, people traded things like salt, shells, or even cows to get what they needed! Today, we use money. Money is a special tool that everyone agrees has value. We use it to buy goods, which are things you can touch like a soccer ball or an apple. We also use it for services, which is work someone does for you, like a dentist cleaning your teeth. Money makes it easy to trade because it is light, easy to carry, and has a clear price.
Quick Check
If you pay a baker to make you a birthday cake, are you paying for a 'good' or a 'service'?
Answer
You are paying for both! The cake is a 'good' and the baker's work is a 'service'.
Coins are small, metal circles that we use for small prices. In the United States, we use four main coins: 1. Penny: It is copper-colored (brownish) and worth . 2. Nickel: It is silver-colored and worth . 3. Dime: It is the smallest silver-colored coin and worth . 4. Quarter: It is the largest common silver-colored coin and worth .
Let's count how much money is in your pocket: 1. You have 3 pennies. Since each is , that is . 2. You have 1 nickel. That is . 3. Total: .
Quick Check
Which coin is worth exactly ?
Answer
The dime.
When things cost a lot, we use paper bills. These are made of a special kind of paper that doesn't tear easily. The most common bill is the one-dollar bill, written as $\$1100¢\ bill, the $\$10\ bill. You can tell how much a bill is worth by looking at the numbers in the corners.
If you have a big jar of quarters, you can trade them for bills:
1. One quarter is worth .
2. Four quarters together make .
3. Since $100¢ = \$1\ bill!
You want to buy a chocolate bar that costs . You have: 1. Two quarters (). 2. One dime (). 3. Total: . Success! You have exactly enough to buy the chocolate.
$\$1\ is equal to .What is the value of a nickel?
How many quarters do you need to make $\$1$?
A penny is the only common US coin that is copper-colored (brown).
Review Tomorrow
Tomorrow morning, try to remember the names of the four coins and how many cents each one is worth.
Practice Activity
Ask a grown-up to show you their wallet or a coin jar. See if you can identify all the pennies, nickels, dimes, and quarters you find!