Understanding Money - MyQBook

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Grades 1 & 2 Understanding Money

You may have noticed that when your parents buy something from a store they pay money to the store owner. We all have to pay money when we want to buy goods or services from others. For example, say you want to buy a candy from a shop. The store owner will give you the candy only when you give him money in return for that candy.

Usually money is in the form of coins and bills. Every country has their own form of money. In the US, we use the following coins:

The above coin is a penny. A penny is the same as 1 cent.

The above coin is a nickel. A nickel is the same as 5 cents.

The above coin is a dime. A dime is the same as 10 cents.

The above coin is a quarter. A quarter is the same as 25 cents. The above coin is half a dollar. A half dollar is the same as 50 cents.

The above is a dollar coin. A dollar is the same as 100 cents. To understand the relationship between the different coins, let's work through some examples. Example 1: What coin/coins makes 5 cents? 5 cents = 5 pennies = 1 nickel 5 pennies make a nickel. If you have 5 pennies or a nickel, you will have 5 cents. Example 2: What coin/coins makes 10 cents? 10 cents = 10 pennies = 2 nickels = 1 dime 10 pennies make a dime. If you have 10 pennies or 2 nickels or a dime, you will have 10 cents. Example 3: What coin/coins make 25 cents? 5 nickels = 25 cents, or 2 dimes and a nickel = 25 cents or a quarter dollar = 25 cents Example 4: What coin/coins make 50 cents? 5 dimes = 50 cents, or 2 quarter dollars = 50 cents or a half dollar = 50 cents Example 5: What coin/coins make 100 cents? 4 quarter dollars = 100 cents, or 2 half dollars = 100 cents or a dollar = 100 cents
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