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Primary Maths · Year 3Chapter 6 · Money
Year 3 · Chapter 6

Money

By the end of this chapter you will be able to

  • Write amounts of money with pounds and pence, and change between pence and pounds
  • Add amounts of money, exchanging 100p for £1 when the pence make 100p or more
  • Subtract amounts of money, exchanging £1 for 100p when the top pence are smaller
  • Work out change by subtracting, or by counting on from the price
  • Use price lists and receipts to find totals and change
  • Solve money problems with two steps, and check that the answer makes sense

You should already know

  • Pounds and pence, and the coins and notes (Year 2, Chapter 6)
  • Adding and subtracting numbers with up to 3 digits (Year 3, Chapter 2)

Where this leads

  • Writing money with a decimal point instead of the p sign (Year 4)
  • Multiplying amounts of money and working out best buys (Year 4 and later)

National Curriculum for England, Key Stage 2 mathematics, Year 3. Content: Add and subtract amounts of money to give change, using both £ and p in practical contexts.

Exercise P  Do you remember?

Non-calculator
1
FHow many pence make £1?
2
FWork out 45 + 38.
3
FWork out 300 − 125.
4
FWrite the number that is 10 less than 200.
5
FThese coins are on the table. How much money is there altogether? Write the answer in pence.
20p20p10p
6.1

Pounds and pence together

Year 3
Use both £ and p in practical contexts
Video lesson: Pounds and pence togetherComing soon
Priya has a money box. At the end of the week, she counts her coins and writes down the total. She writes the total with pounds and pence.

We write an amount of money with pounds and pence. The pounds have the sign £ in front. The pence have the sign p at the end.

For example, £2 35p means 2 pounds and 35 pence. Write the pence with two digits, so 5 pence is written as 05p. We write £2 05p for 2 pounds and 5 pence.

There are 100p in £1. So 100p is the same as £1. When there are 100p or more, we change 100p into £1 and count it with the pounds.

We can set out pounds and pence in two columns, with the pounds on the left:

£p
235
205
£2£150p20p10p5p
These coins make £3 85p altogether. The coins are not drawn to scale.

Key ideas

  • Pounds have the sign £ in front.
  • Pence have the sign p at the end.
  • 100p is the same as £1.
  • Write the pence with two digits: £2 05p is 205p, not 25p.
Worked example 6.1.1
Write 135p in pounds and pence.

Key words. Pounds (£) and pence (p) are the two parts of an amount of money. There are 100p in £1.

Method. Count the groups of 100p. Each group is £1. The rest are the pence.

  1. Look for groups of 100p. 100p makes £1. Count how many groups of 100p are in 135p.
    135 = 1 × 100 + 35
  2. Write the pounds. Each group of 100p is £1, so the pounds are 1.
    1 pound
  3. Write the pence that are left over. The 35p left over are the pence.
    35p
  4. Write the answer. Put the pounds and the pence together.
    £1 35p

Check. 1 × 100p + 35p = 135p. ✓

Watch out. Write the pence with two digits, so 5p after the pounds is written 05p.

Worked example 6.1.2
How many pence are in £2 40p?

Key words. Pounds (£) and pence (p) are the two parts of an amount of money. There are 100p in £1.

Method. Change the pounds to pence, because £1 is 100p. Then add the pence.

  1. Change the pounds to pence. £1 is 100p, so each pound is 100 pence.
    £2 = 200p
  2. Add the pence. Add the pence that are left over.
    200p + 40p = 240p
  3. Write the answer. The answer is in pence, so it has the letter p.
    240p

Check. 240p is 2 lots of 100p with 40p left over. ✓

Watch out. Do not just write the pounds number. £2 is 200p, not 2p.

Worked example 6.1.3
How much money is shown? Write it in pounds and pence.
£1£120p5p

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Add the pence first. Exchange 100p for £1 if the pence make 100p or more. Then add the pounds.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    100
    100
    020
    005
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    0p + 0p + 20p + 5p = 25p
  3. Check the pence. 25p is less than 100p, so we do not need to exchange.
    25p is written down
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    1 + 1 + 0 + 0 = 2 pounds
  5. Write the answer. Put the pounds and the pence together.
    £2 25p

Check. Add the amounts in the opposite order: 5p + 20p + £1 + £1 = £2 25p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Watch out

Watch out: 5p is not the same as £5. And £2 05p is 205 pence, not 25 pence. Keep the pounds and the pence in the right places.

Exam tip

Grown-up tip. Use real coins from home. Make piles of £1 and some pence, then ask your child to say the total in pounds and pence.

Exercise 6A  Writing amounts of money in pounds and pence

Non-calculator
1
FHow much money is in this pile? Write it in pounds and pence.
£1£150p20p5p
2
FWrite 250p in pounds and pence.
3
FWrite 105p in pounds and pence.
4
FWrite £3 08p in pence.
5
FWrite each amount in pence.
(a)£1 20p
(b)£2 05p
(c)£4 60p
6
FWrite each amount in pounds and pence. If there are no pence, write only the pounds.
(a)175p
(b)90p
(c)300p
7
PSWhich is more: £2 35p or 240p? Write the bigger amount in pounds and pence.
8
FFill the gap: £1 = ___p.
9
PSWhich amount is the same as £3 40p? A: 304p B: 340p C: 3400p. Write A, B or C.
10
PSAli has three £1 coins and two 50p coins. How much money does he have altogether? Write it in pounds and pence.
£1£1£150p50p
11
FWrite each amount in pounds and pence.
(a)500p
(b)800p
12
RTom says that £2 05p is the same as 25p. Is he right? Explain.
6.2

Adding money

Year 3
Use both £ and p in practical contexts (addition)
Video lesson: Adding moneyComing soon
At the school fair, Sam buys a cake and a drink. He adds up the prices to check that he has enough money for both.

To add amounts of money, add the pence first. Then add the pounds.

Sometimes the pence add up to 100p or more. When this happens, we exchange 100p for £1. We write down the pence that are left over, and we carry the £1 to the pounds column.

For example, 65p + 48p = 113p. There is one hundred in 113, so 100p is £1 and 13p is left. The answer is £1 13p.

£150p20p
A £1 coin, a 50p coin and a 20p coin. Together they make £1 70p.

Key ideas

  • Add the pence first.
  • Exchange 100p for £1 when the pence make 100p or more.
  • Then add the pounds, including any £1 you carried.
  • Write the answer with pounds and pence.
Worked example 6.2.1
Add £2 35p and £1 40p.

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Add the pence first. Exchange 100p for £1 if the pence make 100p or more. Then add the pounds.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    235
    140
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    35p + 40p = 75p
  3. Check the pence. 75p is less than 100p, so we do not need to exchange.
    75p is written down
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    2 + 1 = 3 pounds
  5. Write the answer. Put the pounds and the pence together.
    £3 75p

Check. Add the amounts in the opposite order: £1 40p + £2 35p = £3 75p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Worked example 6.2.2
Add 65p and 48p.

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Add the pence first. Exchange 100p for £1 if the pence make 100p or more. Then add the pounds.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    065
    048
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    65p + 48p = 113p
  3. Exchange 100p for £1. 113p is 100p or more. We write down 13p and carry £1 to the pounds.
    113p = £1 and 13p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    0 + 0 + 1 carried = 1 pound
  5. Write the answer. Put the pounds and the pence together.
    £1 13p

Check. Add the amounts in the opposite order: 48p + 65p = £1 13p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Worked example 6.2.3
Add £2 80p and £1 45p.

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Add the pence first. Exchange 100p for £1 if the pence make 100p or more. Then add the pounds.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    280
    145
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    80p + 45p = 125p
  3. Exchange 100p for £1. 125p is 100p or more. We write down 25p and carry £1 to the pounds.
    125p = £1 and 25p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    2 + 1 + 1 carried = 4 pounds
  5. Write the answer. Put the pounds and the pence together.
    £4 25p

Check. Add the amounts in the opposite order: £1 45p + £2 80p = £4 25p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Watch out

Watch out: when the pence are 100p or more, you must exchange them. Write £1 13p as the answer to 65p + 48p. Do not write 113p, and do not forget to add the £1 to the pounds.

Exam tip

Grown-up tip. Use real coins. Put 65p and 48p in two piles, then move 100p to the pounds pile when you have it. Ask: "How many pounds now? How many pence are left?"

Exercise 6B  Adding amounts of money

Non-calculator
1
FAdd 40p and 35p.
2
FAdd £1 20p and £2 10p.
3
FAdd £3 75p and £1 65p.
4
FAdd 25p, 40p and 50p.
5
FAdd 65p and 45p.
6
FWork out each addition. Write each answer in pounds and pence.
(a)£2 + £1 50p
(b)64p + 58p
7
PSFill the gap: 45p + ___ = £1.
8
PSMia buys a bag of crisps for 45p and a drink for £1 30p. How much does she spend altogether?
9
PSRavi has £2 60p. His sister gives him 75p. How much money does Ravi have now?
10
PSFour 50p coins are put together. How much money is that altogether? Write it in pounds and pence.
50p50p50p50p
11
PSMei spends £1 25p on a book and 85p on a pencil case. How much does she spend altogether?
12
RBen says that 80p + 30p = £1 10p. Is he right? Explain.
6.3

Subtracting money

Year 3
Use both £ and p in practical contexts (subtraction)
Video lesson: Subtracting moneyComing soon
Tom has £5 in his purse. At the café he buys a sandwich. He wants to know how much money is left.

To subtract amounts of money, line up the pounds and the pence. Then subtract the pence first.

If the top pence are smaller than the bottom pence, we cannot take them away yet. We exchange one £1 from the pounds for 100p, and add the 100p to the pence. Then we can subtract the pence.

Finally, subtract the pounds. Check your answer by adding it back on to the amount you took away.

£2 35p?£5
A bar model. The whole is £5. One part is £2 35p. Find the other part.

Key ideas

  • Subtract the pence first.
  • If the top pence are smaller, exchange £1 for 100p.
  • Then subtract the pounds.
  • Check by adding the answer to the amount you took away.
Worked example 6.3.1
Work out £3 80p − £1 30p.

Key words. The difference is the answer when we subtract. We subtract to find out how much is left.

Method. Write the amounts in columns. If the top pence are smaller, exchange £1 for 100p. Then subtract.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    380
    130
  2. Subtract the pence. We can take 30p from 80p, because 80p is more than 30p.
    80p − 30p = 50p
  3. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    3 − 1 = 2 pounds
  4. Write the answer. Put the pounds and the pence together.
    £2 50p

Check. £1 30p + £2 50p = £3 80p. ✓

Watch out. If the top pence are smaller, exchange £1 for 100p before you subtract the pence.

Worked example 6.3.2
Work out £2 20p − 85p.

Key words. The difference is the answer when we subtract. We subtract to find out how much is left.

Method. Write the amounts in columns. If the top pence are smaller, exchange £1 for 100p. Then subtract.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    220
    085
  2. Exchange £1 for 100p. 20p is less than 85p, so we take £1 from the pounds and add 100p to the pence.
    £2 and 20p = £1 and 120p
  3. Subtract the pence. Now we can take 85p from 120p.
    120p − 85p = 35p
  4. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    1 − 0 = 1 pound
  5. Write the answer. Put the pounds and the pence together.
    £1 35p

Check. 85p + £1 35p = £2 20p. ✓

Watch out. If the top pence are smaller, exchange £1 for 100p before you subtract the pence.

Worked example 6.3.3
Work out £5 − £2 65p.

Key words. The difference is the answer when we subtract. We subtract to find out how much is left.

Method. Write the amounts in columns. If the top pence are smaller, exchange £1 for 100p. Then subtract.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    500
    265
  2. Exchange £1 for 100p. 0p is less than 65p, so we take £1 from the pounds and add 100p to the pence.
    £5 and 0p = £4 and 100p
  3. Subtract the pence. Now we can take 65p from 100p.
    100p − 65p = 35p
  4. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    4 − 2 = 2 pounds
  5. Write the answer. Put the pounds and the pence together.
    £2 35p

Check. £2 65p + £2 35p = £5. ✓

Watch out. If the top pence are smaller, exchange £1 for 100p before you subtract the pence.

Watch out

Watch out: when you exchange £1 for 100p, the pounds go down by £1. Forgetting this gives the wrong answer. Check with addition.

Exam tip

Grown-up tip. Use real coins. Ask: "If you have 85p and need 20p more, how many pence do you need to borrow?"

Exercise 6C  Subtracting amounts of money

Non-calculator
1
FWork out £4 60p − £1 20p.
2
FWork out £2 75p − 50p.
3
FWork out £3 30p − £1 45p.
4
FWork out £1 − 35p. Write your answer in pence.
5
FWork out £5 − £1 80p.
6
FWork out £2 10p − 65p.
7
FWork out each subtraction.
(a)£9 − £3 40p
(b)£4 15p − £2 30p
8
PSFill the gap: £3 20p − ___ = £1 75p.
9
PSPriya has £4 10p. She buys a sticker book for £2 65p. How much money is left?
10
PSA pencil case costs £3 50p. Sam has £2 80p. How much more money does Sam need?
11
PSWhat is the difference between £3 05p and £1 90p?
12
RAli says that £2 20p − 85p = £1 65p. Is he right? Explain.
6.4

Giving change

Year 3
Use both £ and p in practical contexts (giving change)
Video lesson: Giving changeComing soon
Mrs Khan runs a cake stall. Customers pay with coins or with a note. She must give the right change every time.

When you pay for something with more money than it costs, you get change back. The change is the money paid minus the price.

There are two ways to find the change.

Method 1: subtract. Take the price away from the money paid. Use the columns, as in section 6.3.

Method 2: count on. Start at the price. Count on to the next whole £1, then count on in pounds, then count on the pence that are left. Add the jumps together.

£5
A £5 note. We use it to pay for things that cost less.

Key ideas

  • Change = the money paid − the price.
  • Count on: first to the next whole £1, then in pounds, then the pence left.
  • Check: the price plus the change is the money paid.
Worked example 6.4.1
A drink costs £1 20p. Sam pays with £2. What is his change? Use counting on.

Key words. The change is the money you get back when you pay with more money than something costs.

Method. Count on from the price to the money paid. Add up the jumps. The total of the jumps is the change.

  1. Start at the price. Count on from the price to the money that was paid.
    £1 20p
  2. Count on to £2. We add 80p to get to £2.
    £1 20p + 80p = £2
  3. Add up the jumps. The change is all the jumps added together.
    80p = 80p
  4. Write the answer. This is the change.
    80p

Check. £1 20p + 80p = £2. ✓

Watch out. Count on to the next whole £1 first, then count on in pounds. Do not count on in single pence.

Worked example 6.4.2
A bag costs £2 35p. Mrs Khan is paid with a £5 note. Work out the change by subtracting.

Key words. The change is the money you get back when you pay with more money than something costs.

Method. The change is the money paid minus the price. Write the amounts in columns, exchange £1 for 100p if the top pence are smaller, then subtract.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    500
    235
  2. Exchange £1 for 100p. 0p is less than 35p, so we take £1 from the pounds and add 100p to the pence.
    £5 and 0p = £4 and 100p
  3. Subtract the pence. Now we can take 35p from 100p.
    100p − 35p = 65p
  4. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    4 − 2 = 2 pounds
  5. Write the answer. Put the pounds and the pence together.
    £2 65p

Check. £2 35p + £2 65p = £5. ✓

Watch out. The change is always smaller than the money paid. Do not add the price to the money paid.

Worked example 6.4.3
A biscuit costs 46p. Jo pays with £1. What is her change?

Key words. The change is the money you get back when you pay with more money than something costs.

Method. Count on from the price to the money paid. Add up the jumps. The total of the jumps is the change.

  1. Start at the price. Count on from the price to the money that was paid.
    46p
  2. Count on to £1. We add 54p to get to £1.
    46p + 54p = £1
  3. Add up the jumps. The change is all the jumps added together.
    54p = 54p
  4. Write the answer. This is the change.
    54p

Check. 46p + 54p = £1. ✓

Watch out. Count on to the next whole £1 first, then count on in pounds. Do not count on in single pence.

Watch out

Watch out: the change is smaller than the money paid. Do not add the price to the money paid. Check that the price plus the change makes the money paid.

Exam tip

Grown-up tip. Ask your child to pay for a snack with a coin or note from home, then count on from the price to the money paid, out loud.

Exercise 6D  Giving change

Non-calculator
1
FA cake costs 60p. Ali pays with £1. What is his change?
2
FA drink costs £1 25p. Priya pays with £2. What is her change?
3
FJo buys a sandwich for £2 40p and pays with a £5 note. What is her change?
4
FA bag of crisps costs 35p. Leo pays with a £1 coin. What is his change?
£1
5
FA pen costs £1 80p. Ruby pays with £2. What is her change?
6
FA toy costs £6 45p. Ben pays with a £10 note. What is his change?
7
FA drink costs 88p. Sam pays with £2. Count on to find his change.
8
PSLeo has a £10 note. He buys 2 juice boxes that cost 85p each. What is his change?
9
PSMaya buys 3 pencils for 45p each and pays with £2. What is her change?
10
PSBen pays £2 for a drink and gets £1 20p change. How much did the drink cost?
11
RSam pays £1 for a 45p item. He says he will get 65p change. Is he right? Explain.
6.5

Price lists and receipts

Year 3
Use both £ and p in practical contexts (price lists and receipts)
Video lesson: Price lists and receiptsComing soon
The school fair has a price list on the table. Each stall shows what each item costs. Mei uses the list to decide what to buy.

A price list tells you the price of each item. To find the cost of more than one item, add the prices. Each item counts once for each time it is bought.

A receipt lists what was bought, with the price of each item. The total is all the prices added together. The change is the money paid minus the total.

ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
The price list for the fair.

Key ideas

  • A price list shows the price of each item.
  • The total is all the prices added together.
  • Change = the money paid − the total.
Worked example 6.5.1
How much do a cookie and a juice cost altogether?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Find the prices of the cookie and the juice in the list. Then add them.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    035
    075
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    35p + 75p = 110p
  3. Exchange 100p for £1. 110p is 100p or more. We write down 10p and carry £1 to the pounds.
    110p = £1 and 10p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    0 + 0 + 1 carried = 1 pound
  5. Write the answer. Put the pounds and the pence together.
    £1 10p

Check. Add the amounts in the opposite order: 75p + 35p = £1 10p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Worked example 6.5.2
Sara buys a flapjack and a cupcake. She pays with £2. What is her change?

Key words. The change is the money you get back when you pay with more money than something costs.

Method. Find the total of the flapjack and the cupcake. Then take the total away from the £2 Sara paid.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    085
    060
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    85p + 60p = 145p
  3. Exchange 100p for £1. 145p is 100p or more. We write down 45p and carry £1 to the pounds.
    145p = £1 and 45p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    0 + 0 + 1 carried = 1 pound
  5. Write the total cost down. The total cost is £1 45p.
    £1 45p
  6. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    200
    145
  7. Exchange £1 for 100p. 0p is less than 45p, so we take £1 from the pounds and add 100p to the pence.
    £2 and 0p = £1 and 100p
  8. Subtract the pence. Now we can take 45p from 100p.
    100p − 45p = 55p
  9. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    1 − 1 = 0 pounds
  10. Write the change. This is the money left from the amount paid.
    55p

Check. £1 45p + 55p = £2. ✓

Watch out. Find the total first. Then take it away from the money paid.

Worked example 6.5.3
Use the receipt. How much did the items cost altogether?
ReceiptAmount
Cookie35p
Cookie35p
Juice75p
Total£1 45p

Key words. The total is the answer when we add. To exchange means to swap 100p for £1.

Method. Read the prices from the receipt. Add them all together to find the total.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    035
    035
    075
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    35p + 35p + 75p = 145p
  3. Exchange 100p for £1. 145p is 100p or more. We write down 45p and carry £1 to the pounds.
    145p = £1 and 45p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    0 + 0 + 0 + 1 carried = 1 pound
  5. Write the answer. Put the pounds and the pence together.
    £1 45p

Check. Add the amounts in the opposite order: 75p + 35p + 35p = £1 45p. ✓

Watch out. When the pence add up to 100p or more, you must exchange them for £1. Do not write 113p as the answer.

Watch out

Watch out: each item counts once for each time it is bought. If Nina buys 2 cookies, add the price of a cookie twice.

Exam tip

Grown-up tip. Make a small price list with real items from home. Ask: "What would we pay for two of these?"

Exercise 6E  Using price lists and receipts

Non-calculator
1
FHow much more does a juice cost than a cookie?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
2
FHow much more does a flapjack cost than a cupcake?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
3
FMia buys one cookie and one cupcake. How much does she spend?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
4
PSBen has 80p. He buys a juice. How much money is left?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
5
PSTom has £2. He buys a lemon drink. What is his change?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
6
PSNina buys a cookie, a cookie and a juice. What is the total?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
7
PSDan has £5. He buys a juice and a flapjack. What is his change?
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
8
PSWhich two items cost exactly £1 20p altogether? Write the names.
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
9
PSRuby pays with £2 for these items. Use the receipt. What change does she get?
ReceiptAmount
Cupcake60p
Lemon drink£1 20p
Total£1 80p
Paid£2
10
RSam has £1. He buys a cookie and a cupcake. He says he will have 5p left. Is he right? Explain.
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
11
RAli says a cupcake and a cookie cost more than a juice. Is he right? Explain.
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
6.6

Money problems

Year 3
Use both £ and p in practical contexts (problems with two steps)
Video lesson: Money problemsComing soon
The Year 3 class is going on a trip. Each child needs money for lunch, a drink and a souvenir. They use what they know about adding and subtracting money to plan.

Read the problem twice. Ask: what am I finding?

Words such as altogether, in total and how much do they cost mean we add. Words such as left, change, spent and how much more mean we subtract.

A bar model helps. The bar is the whole. The parts show what we know, and the missing part shows what we need to find. Some problems have two steps. Work out the first step, write it down, and then do the second step.

£2 35p?£5
A bar model. The whole is £5. One part is £2 35p. The other part is the money left.

Key ideas

  • Add when we put amounts together: altogether, in total.
  • Subtract when we take away: left, change, how much more.
  • Two-step problems: work out one step, then use the answer for the next step.
Worked example 6.6.1
Ali has £5. He spends £2 35p on a sandwich. How much money is left?
£2 35p?£5

Key words. The difference is the answer when we subtract. We subtract to find out how much is left.

Method. The whole is £5 and one part is £2 35p. The part left over is the money left. Write the amounts in columns and subtract.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    500
    235
  2. Exchange £1 for 100p. 0p is less than 35p, so we take £1 from the pounds and add 100p to the pence.
    £5 and 0p = £4 and 100p
  3. Subtract the pence. Now we can take 35p from 100p.
    100p − 35p = 65p
  4. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    4 − 2 = 2 pounds
  5. Write the answer. Put the pounds and the pence together.
    £2 65p

Check. £2 35p + £2 65p = £5. ✓

Watch out. If the top pence are smaller, exchange £1 for 100p before you subtract the pence.

Worked example 6.6.2
Ben has £3 20p. He buys a book for £1 75p and a pen for 45p. How much money is left?

Key words. The change is the money you get back when you pay with more money than something costs.

Method. Add the cost of the book and the pen. Then take the total away from the money Ben has.

  1. Write the amounts in pounds and pence, one under the other. Pounds go in one column and pence in the other, so the same units line up.
    £p
    175
    045
  2. Add the pence first. Add the pence column. The pence can add up to more than 100p.
    75p + 45p = 120p
  3. Exchange 100p for £1. 120p is 100p or more. We write down 20p and carry £1 to the pounds.
    120p = £1 and 20p
  4. Add the pounds, including any £1 you carried. Add up the pounds column.
    1 + 0 + 1 carried = 2 pounds
  5. Write the total cost down. The total cost is £2 20p.
    £2 20p
  6. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    320
    220
  7. Subtract the pence. We can take 20p from 20p, because 20p is more than 20p.
    20p − 20p = 0p
  8. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    3 − 2 = 1 pound
  9. Write the change. This is the money left from the amount paid.
    £1

Check. £2 20p + £1 = £3 20p. ✓

Watch out. Find the total first. Then take it away from the money paid.

Worked example 6.6.3
Lily has £1 35p. She wants to buy a bell for £2. How much more money does she need?

Key words. The difference is the answer when we subtract. We subtract to find out how much is left.

Method. How much more does Lily need? Take the money she has away from the price of the bell.

  1. Write the amounts in pounds and pence, one under the other. The bigger amount goes on top, with the pounds over the pounds and the pence over the pence.
    £p
    200
    135
  2. Exchange £1 for 100p. 0p is less than 35p, so we take £1 from the pounds and add 100p to the pence.
    £2 and 0p = £1 and 100p
  3. Subtract the pence. Now we can take 35p from 100p.
    100p − 35p = 65p
  4. Subtract the pounds. Take the pounds of the second amount away from the pounds of the first.
    1 − 1 = 0 pounds
  5. Write the answer. Put the pounds and the pence together.
    65p

Check. £1 35p + 65p = £2. ✓

Watch out. If the top pence are smaller, exchange £1 for 100p before you subtract the pence.

Watch out

Watch out: "how much more" means subtract. "Altogether" means add. Read the question to see which one to use.

Exam tip

Grown-up tip. Ask your child to say what the question is asking for before they work anything out. Then ask: "Is the answer sensible?"

Exercise 6F  Money problems

Non-calculator
1
PSA jacket costs £6. A hat costs £2 25p. How much do they cost altogether?
£6£2 25p£8 25p
2
PSPriya has £10. She buys 3 books that cost £2 each. How much money is left?
3
PSSam saves £1 25p each week. How much has he saved after 2 weeks?
4
PSElla has 75p. She needs £2 to buy a comic. How much more money does she need?
5
PSKofi pays for a meal costing £4 60p with a £10 note. How much change does he get?
6
PSTom and Ali have £6 altogether. Tom has £2 40p. How much money does Ali have?
7
PSThree pencils cost 35p each. A pack of pens costs £1 20p. Which costs more? Write the name.
8
PSLeo has £5. He buys a pencil case for £2 35p and a ruler for 60p. What change does he get?
9
PSA school trip costs £12 40p. Ali has saved £8 75p. How much more does he need?
10
PSRuby has a £1 coin, a 50p coin and a 20p coin. She buys a book for 120p. How much money is left?
£150p20p
11
RSam says that £1 is exactly enough to buy a 55p drink and a 45p biscuit. Is he right? Explain.
12
RMia has £2. She buys 4 stickers at 45p each. She says she has 20p left. Is she right? Explain.

Chapter summary

SkillMethod
Writing moneyPounds come first with the sign £. Pence come last with the sign p. £1 is 100p. Write pence with two digits, such as £2 05p.
Adding moneyAdd the pence first. If the pence make 100p or more, exchange 100p for £1 and carry it to the pounds. Then add the pounds.
Subtracting moneySubtract the pence first. If the top pence are smaller, exchange £1 for 100p. Then subtract the pounds.
Giving changeChange = the money paid minus the price. Or count on from the price to the money paid, and add the jumps.
Price lists and receiptsRead the price of each item. The total is all the prices added together.
Money problemsRead the question. Words like "altogether" mean add. Words like "left" or "how much more" mean subtract.

Can you…?

  • I can write an amount with pounds and pence, and change between pence and pounds.
  • I can add amounts of money, exchanging 100p for £1 when I need to.
  • I can subtract amounts of money, exchanging £1 for 100p when I need to.
  • I can work out change by subtracting, or by counting on.
  • I can use a price list or a receipt to find totals and change.
  • I can solve money problems with two steps, and check that my answer makes sense.

Key terms

Pound (£)
The main unit of money. There are 100 pence in £1.
Pence (p)
The smaller unit of money. There are 100p in £1.
Exchange
To swap an amount for another amount that has the same value, such as 100p for £1.
Price list
A list that shows the cost of each item.
Receipt
A list of the items bought and their prices, with the total.
Change
The money you get back when you pay with more money than something costs.
Total
The answer when amounts are added together.
Count on
A way to find the change: start at the price and count on to the money paid.

Exercise 6Z  Check-up

Non-calculator
1
Write 235p in pounds and pence.
2
Add £1 65p and 80p.
3
Work out £4 20p − 95p.
4
A drink costs £1 15p. Ella pays with £2. Count on to find her change.
5
Use the receipt. What is the total?
ReceiptAmount
Cupcake60p
Flapjack85p
Total£1 45p
6
Fill the gap: £2 + ___ = £3 60p.
7
Ali says that £3 05p is more than 350p. Is he right? Explain.
8
A pen costs £1 45p and a rubber costs 35p. Maya pays with £2. What is her change?
9
Ben has £4 40p. He spends £1 85p. How much money is left?
10
Sara has three £1 coins. She wants a book that costs £3 60p. How much more money does she need?

Total 20 marks. Allow about 20 minutes.

Exercise 6X  Practice test questions

Non-calculator
1
FWrite 105p in pounds and pence.[1 mark]
2
FWrite £3 60p in pence.[1 mark]
3
FAdd £2 45p and 90p.[2 marks]
4
FWork out £5 − £3 15p.[2 marks]
5
FA drink costs 75p. Ella pays with a £1 coin. What is her change?[2 marks]
6
FUse the receipt. Ravi pays £2. What change does he get?[2 marks]
ReceiptAmount
Juice75p
Cookie35p
Total£1 10p
Paid£2
7
FAli has £3 20p. He buys a comic for £1 45p and a sticker for 60p.[3 marks]
(a)How much does he spend altogether?
(b)How much money is left?
8
FMaya says that £2 05p is more than 210p. Is she right? Explain.[2 marks]
9
FTom buys a cupcake and a juice from the price list. He pays with £2.[3 marks]
ItemPrice
Cookie35p
Cupcake60p
Flapjack85p
Juice75p
Lemon drink£1 20p
(a)How much do the two items cost altogether?
(b)What change does Tom get?
10
FSam has £10. He buys 2 pens at £2 45p each. How much money does he have left?[2 marks]
← Chapter 5: Length, mass, capacity and perimeterChapter 7: Time →

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