Once you have explained that five pennies is equal in value to one nickel, divide the children in two groups and seat them on opposite sides of the table, facing each other in pairs. (This activity can also be performed one-on-one, with you and the child.) Give half the children several nickels and the other half pennies. Have the children barter with one another to exchange the nickels for the appropriate number of pennies. Be prepared for protest: younger children often feel that they are being treated unfairly when they receive only one coin in exchange for five. Explain patiently that once the game is done, they will still have the same amount of money they did when it began, even if they only have, for example, two nickels instead of 10 pennies.
Set up a "shop" with items priced at 10 cents. Then give each student 10 pennies and two nickels. Let each child "buy" two items. Ask them which item they feel they paid more for. Students who quickly grasp money principles will understand they paid the same for each item; children who are still working to understand will need to be explained to that they paid the same amount for both items. Remind them that both items cost 10 cents. Discuss the different ways it is possible to pay for the items: two nickels, 10 pennies or a nickel and five pennies.
Set up a "shop" full of like items (like 10 dolls, 10 blocks or 10 crackers). Give each child several pennies and several nickels. Tell each child that he may purchase one item for a penny or for a nickel. Ask them which they would rather pay. Then ask how much they should have to pay for an item, if each item is worth one penny. Explain that for one penny, they can buy one item, but for one nickel, they should be able to buy five.
Many worksheets are available that allow kindergarten students to work on the value of pennies and nickels. Many are more complicated than simple exchanges; for example, they may ask how many nickels may be traded for 11 pennies. Make your own worksheets if you feel available ones are too complicated for your class.