Money and Decimals

Understanding money is one of the most practical uses of maths in everyday life. In British currency, there are 100 pence (p) in one pound (£). When we write amounts of money, we use a decimal point: £3.47 means 3 pounds and 47 pence. The two digits after the decimal point always represent pence, so £3.07 is 3 pounds and 7 pence — not 70! We can add and subtract money the same way we add and subtract other decimals, keeping the decimal points lined up. Calculating change means finding the difference between the price of something and the amount paid. A useful strategy is to count on from the price: if something costs £2.65 and you pay with a £5 note, you count up — 35p to £3.00, then £2.00 more — giving £2.35 change. We can also compare prices, work out totals for shopping lists, and share costs equally between people.