Grade 1 → Measurement ↓
Money
Money is a special thing that we use every day. It helps people buy the things they need. Let's learn more about money and how we use it.
What is money?
Money is a tool that helps us exchange goods and services. In the past, people traded things like corn or shells as money. Today, we use coins and paper money to buy things. We also use electronic money, which you can't see, but it's still money!
Why do we use money?
Money makes it easier to buy things because everyone agrees on how much things cost. Without money, we would have to exchange goods directly, which is called barter. Imagine you are selling your toys for snacks, but what if no one wants to buy your toys? Money solves this problem!
Different forms of money
Money comes in different shapes and sizes such as coins, paper notes and electronic currency.
Coins
Coins are small, round pieces of metal. They have different values. Here are the values of different coins you might see:
- Penny - equal to 1 cent
- Nickel - equal to 5 cents
- Dime - equal to 10 cents
- Quarter - worth 25 cents
1¢
Receipt
Paper bills are rectangular pieces of paper with different values. Here are some examples of bill values:
- One dollar - $1
- Five dollars - $5
- Ten dollars - $10
- Twenty dollars - $20
$1
Electronic money
Electronic money is money you can't hold in your hand. It includes things like credit cards, debit cards, and digital wallets. We use these when we shop online or use a card to pay at a store.
How to use the funds
Let's say you want to buy a toy worth $3. If you have a $5 bill, you can give it to the cashier and get $2 in return, because:
$5 - $3 = $2
$5 - $3 = $2
You begin to understand how to give the right amount and what to receive in return.
Counting coins
Let's practice counting coins to make different amounts:
Example: What coins make up 25 cents?
- One fourth
- Or two dimes and a nickel
- Or five nickels
Quarter: 1 x 25¢ = 25¢ Dime: 2 x 10¢ + Nickel: 1 x 5¢ = 20¢ + 5¢ = 25¢ Nickel: 5 x 5¢ = 25¢
Quarter: 1 x 25¢ = 25¢ Dime: 2 x 10¢ + Nickel: 1 x 5¢ = 20¢ + 5¢ = 25¢ Nickel: 5 x 5¢ = 25¢
Making a difference
If you buy something for 10 cents and pay with a quarter (25 cents), you'll get some change. How much money should you get back?
25¢ - 10¢ = 15¢
25¢ - 10¢ = 15¢
You'll get 15 cents back. It could be a dime and a nickel or three nickels.
Fun facts about money
- Money was invented over 3,000 years ago to make trade easier.
- This penny is primarily made of zinc and has a thin layer of copper.
- Coins last longer than paper currency.
- Dollars are made of cotton and linen, not paper!
Practice exercises
Here are some exercises you can do to practice using money.
Exercise 1: Matching
Match each item with the correct price:
- Apples - 10 cents
- Banana – 15 cents
- Oranges - 20 cents
Exercise 2: Counting coins
How can you make 30 cents? Use any combination of pennies, nickels, dimes, and quarters.
Example Solution: Three dimes = 30¢ Six nickels = 30¢ One quarter + one nickel = 30¢
Example Solution: Three dimes = 30¢ Six nickels = 30¢ One quarter + one nickel = 30¢
Conclusion
Learning about money is important because we use it in many parts of our lives. The more you practice, the better you will understand how to use money. Have fun and learn how money works!