Place value is a system that helps us understand the value of digits in a number based on their position. For example, in the number 345, the digit 3 is in the hundreds place, meaning it represents three hundred, while the 4 is in the tens place, representing forty, and the 5 is in the ones place, representing five. This system allows us to read and write large numbers easily. Each position to the left increases by a factor of ten. For instance, in the number 5,678, the 5 represents five thousand, the 6 represents six hundred, the 7 represents seventy, and the 8 represents eight.