Now in order for students to catch onto estimation, the must fully understand place value. If they don't they will struggle to figure out what number to look at in order to find the estimated number.
There is also front end rounding shown here:click on "watch out"
http://studyjams.scholastic.com/studyjams/jams/math/addition-subtraction/estimate-sums-diffs.html
There is also steps for estimating the difference and such. Estimation also includes time. Students need to learn how to tell time to the nearest hour, half hour and quarter hour.
Estimation is something we all use on a daily basis. I think coming up with real life situations for this unit will be easy and you can make it fun too. You could have students plan some kind of party where they have to estimate how many students there are then estimate how much each person would eat and drink. Then for all their hard work and planning, you could cook or bring in that actual amount of their estimation to see if they are right.
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