I make some practical apparatus for the children I tutor. I print out some smallish 10 by 10 square grids and stick them onto craft foam sheets for easy handling. Then cut them out so they are solid colour foam on one side and a 10 by 10 grid on the other.
I explain to the children that these are "whole squares" and do some simple sums (3 + 2 etc) to demonstrate.
Then I explain that the decimal point means "Stop working with whole squares and start cutting them into bits". and because we have a decimal system we start by cutting them into 10 bits. I give them scissors and ask them to cut a square into 10 strips following the grid lines. Explain that these are called tenths because 10 of them make up one whole one.
Then do similar splitting a tenths into ten by cutting along grid lines. Explain these are called hundredths because 100 of them make up a whole square. They can check this by looking at grid side on "whole squares".
I show how these are recorded by digits after the decimal points.
Then I get them to do lots of practical sums manipulating this apparatus. In practice I'd probably do lots of work with tenths until they were confident before introducing hundredths.
The effect of multiplying by 10 can be seen visually.
Eg 0.3 x 10 =
Get them to put 3 of the tenth sticks on table and confirm this represents 0.3 or three tenths. Wave a tenth stick at them and say "if I multiply this by ten, what do I get?" Answer "one of the whole squares" (they have already made the tenths sticks by cutting a whole square into 10 strips so should get this easily)
Do this for each of the tenth sticks in turn. You will end up with 3 whole squares. So you can show that 0.3 x 10 = 3.
I do this lots of times and introduce hundredths as well ( when you multiply one of the little hundredth squares by 10 you get a tenth stick - they've done this in reverse by cutting so they usually get this too)
Once they've done loads with the apparatus, they usually "get the pattern" and can do the sums without the equipment. I then extend to dividing by 10 and multiply/divide by 100.
I extend my apparatus by taking ten whole squares and skewering them on a piece of wooden kebab stick ( glue a bead on each end to stop coming off) explaining that it means we can count tens of whole squares easily.
This equipment is great for showing them the difference between 10 and a tenth and that 0.7 + 0.5 does not equal 0.12. (If you do the sum with actual tenth sticks you can see that you have enough to make one whole square plus 2 tenths ie 1.2) you can also see easily that 3 tenths = 30 hundredths etc
Once they are really confident I introduce thousandths by asking them to imagine cutting a hundredth little square into 10 bits ( too small to actually do this!) and we pretend to manipulate tiny thousandth pieces!
This sounds complicated - a lot easier to show rather than explain in words but I hope it makes sense!
I think the advantage of this over using things like coins is that the actual size/shape of the pieces shows their relationship to each other and the fact that you can get the child to actually cut up the pieces themselves.