ELI5: Explain Like I'm 5

Denomination (postage stamp)

Okay, so imagine you want to mail a letter to your friend who lives far away. To send the letter, you need to put a stamp on it. A stamp is like a little sticker that shows you paid for the letter to be sent.

Now, different stamps cost different amounts of money. This is where the denomination comes in. Denomination is just a fancy word for how much money the stamp is worth. For example, one stamp might be worth 50 cents, and another stamp might be worth 1 dollar.

So when you go to the post office to buy stamps, you need to know how much money you need to put on the stamp to make sure your letter gets sent. That's why it’s important to understand what the denomination is. The post office will have stamps with different denominations, so you can choose the one that matches the cost of your letter.

It's kind of like when you go to the store and want to buy a toy. Each toy has a price tag with a number on it to show how much money you need to pay for it. With stamps, the amount of money you pay is called the denomination. And just like with toys, you need to make sure you have the right amount of money to buy it, or in this case, send your letter.