Have the child sort a large handful of coins into bowls by type. Start the child out by placing a penny in one bowl, a nickel in the next, a dime in the next and a quarter in the last. Sorting coins helps children recognize the differences between the coins. Help the child identify and correct any mistakes in sorting.
Take all of the coins away from the child except the pennies. The child should have at least 25 pennies to use in the remaining steps of the teaching process.
Teach the name and value of the penny. It is the easiest to identify because of its color, and its value is easiest to grasp because one penny is worth one cent.
Instruct the child to place a piece of white paper on top of the penny and rub over it with a crayon to create a rubbing. Help the child make a rubbing of each side of the penny and label it with its name and value.
Introduce the child to the nickel by explaining that it is worth five cents, which is five pennies. Have the child count out sets of five pennies and trade each set for a nickel. Make a rubbing of a nickel and label it.
Introduce the dime and have the child trade two nickels for a dime. If the child still has pennies, he can count out 10 of those to trade for a dime. Explain that even though the dime is small, it is worth more than the nickel. Again, create a crayon rubbing of the dime and label the rubbing.
Give the child a quarter in exchange for 25 cents worth of other coins. Explain that the quarter is worth more than a dime, a nickel and a penny put together, even though a quarter is only one coin. Create a crayon rubbing of the quarter and label it with its name and value.
Give the child a variety of coins and have him play games with the coins. For example, you could have him go on a fake shopping trip where he has to ask for the price of an item and pick the right coin. Vary between telling the price in cents, as in "that costs 10 cents" and telling the price in the name of the coin, as in "that costs a dime."