I'm not sure what grade level you are working at so please pardon me if this explanation seems overly simplified:
Hot air balloons utilize the "displacement" effect. When air is heated, the air molecules move faster and spread further apart - thus becoming less dense. The air on the outside of the balloon remains at the same temperature and density. This causes the trapped air in the balloon to rise to a place where the air density is equal. It's also why a balloon doesn't float out into space - as the air outside the balloon becomes less dense than the air inside the balloon rises no higher.
Here's a good article on air density: www.usatoday.com
Hot air balloons utilize the "displacement" effect. When air is heated, the air molecules move faster and spread further apart - thus becoming less dense. The air on the outside of the balloon remains at the same temperature and density. This causes the trapped air in the balloon to rise to a place where the air density is equal. It's also why a balloon doesn't float out into space - as the air outside the balloon becomes less dense than the air inside the balloon rises no higher.
Here's a good article on air density: www.usatoday.com