Change (money) facts for kids
Change is the money you get back when you pay for something with more money than it costs. Imagine you buy a snack that costs 75 cents, but you pay with a dollar bill (which is 100 cents). The extra 25 cents you get back is your change! It's the difference between what you paid and the actual price.
Contents
What is Change?
Change means the extra money a seller gives you after you buy something. This happens when you give them more money than the item's price. For example, if a toy costs $5 and you pay with a $10 bill, you will get $5 back as change. This system makes buying and selling easier, even if you don't have the exact amount.
How Does Change Work?
When you pay for something, the person selling it needs to know how much money you gave them. They also need to know the item's price. They then subtract the price from the money you gave. The amount left over is the change they give back to you. This ensures you only pay the correct amount for what you buy.
Why Do We Need Change?
It's not always easy to have the exact amount of money for every purchase. Imagine if you always had to carry the exact coins and bills! Change makes shopping convenient. It allows you to use larger bills or coins and still pay the correct price. This system helps everyone make transactions smoothly.
Change as Coins
The word "change" can also mean money in the form of coins. For example, if you have a pocket full of pennies, nickels, and dimes, you might say you have "some change." These small metal pieces of money are used for everyday purchases. They are usually worth less than paper money, like dollar bills.
What is "Exact Change"?
Sometimes, you might hear someone ask for "exact change." This means you need to pay the precise amount for an item, without getting any money back. For instance, some buses in the United States require riders to pay with exact change. The bus driver cannot give you change back. You must have the exact fare to ride. This helps make the boarding process faster and simpler.
Why Do Places Ask for Exact Change?
Businesses or services might ask for exact change for a few reasons. It can make transactions quicker, especially in busy places like public transport. It also means they don't need to keep a lot of extra money on hand to give back as change. This can be safer and more efficient for them.
