Addition with money

Quick answer

You can add money amounts by lining up the decimal points and adding the pounds and pence separately, just like adding numbers in columns.

Learning outcome

By the end of this page, you will be able to add money amounts using place value and decimal notation, and you will be able to solve real-life problems involving money.

• You can add two amounts of money together correctly.
• You can use column addition with pounds and pence.
• You can solve word problems about shopping or pocket money.
• You can explain how to add money to a friend or family member.

Why this matters

Adding money is one of the most useful skills you can learn! Whether you're buying a toy, sharing snacks with friends, or saving up for a bike, you need to add money to know how much you have or how much you need. This skill helps you in games, real life, and even in your future job when you might need to add up bills or calculate prices.

Many games and apps use money as a way to teach math. For example, in Animal Crossing, you might need to add up the prices of items you want to buy. In Minecraft, you might build a shop and add up how much money you earn from selling things. Even in your daily life, when you go shopping, you add up the prices of your items to check if you have enough money.

How it works

Adding money is like adding numbers, but we have to pay attention to the decimal point. In the UK, we use pounds (£) and pence (p). There are 100 pence in 1 pound. When we add money, we line up the decimal point and add pounds with pounds and pence with pence.

Let’s look at how to add money using column addition:

1. Write the two amounts one under the other, making sure the decimal point lines up.
2. Add the pence column first (from right to left).
3. If the pence total is more than 99 pence, we need to carry over to the pounds.
4. Add the pounds column (from left to right).

Examples you can see

Let’s try an example together:

Example 1: You have £3.45 and your friend gives you £2.30.

You now have £5.75.

Example 2: You buy a book for £4.99 and a pencil for 25p.

The total is £5.24.

Example 3: You have £10.00 and spend £6.75.

You have £3.25 left.

Try it as a mini adventure

Adventure: The Shopping Trip

You are going to the shop with £10.00 to buy some snacks for your family. You want to buy:

• A packet of crisps for £1.20
• A chocolate bar for 75p
• A bottle of juice for £2.50
• A bag of sweets for 45p

Can you work out how much all the items cost altogether? How much money will you have left?

Here’s how to do it:

1. Write down the prices:
2. £1.20 + 75p + £2.50 + 45p
3. Line up the decimal points:

The total is £3.90.

You started with £10.00.

£10.00 - £3.90 = £6.10

You have £6.10 left after your shopping trip!

Common mistakes

• Mistake: Forgetting to line up the decimal points.
  Why it happens: It’s easy to just write numbers down without checking where the decimal point should be.
  Fix: Always make sure the decimal point lines up vertically when adding money.
• Mistake: Adding pence without carrying over when it goes over 99.
  Why it happens: Children might think pence is just like normal numbers.
  Fix: If the pence total is 100 or more, remember to add one pound to the pounds column.
• Mistake: Thinking that £2.50 + £1.75 = £3.125.
  Why it happens: Confusing decimal notation with whole numbers.
  Fix: Remember that pence are always two digits after the decimal point.
• Mistake: Not writing pence as two digits (e.g., 5p instead of 05p).
  Why it happens: It can be easy to forget to write the zero.
  Fix: Always write pence as two digits to keep the columns aligned.

Parent and carer guide

Helping your child with adding money is a great way to build their confidence in math and real-life skills. Here are some tips:

• Use real coins and notes when practising. This helps children understand the value of each amount.
• Play a game where you take turns buying items with a pretend shop. Ask them to add the prices together.
• Encourage them to write down the amounts in columns, just like in the examples.
• Don’t worry if they make a mistake – it’s part of learning! Ask them to explain their thinking so you can help.
• Ask them to explain how they added two amounts. This helps them understand the process better.

Remember, children learn best when they feel confident and supported. Don’t rush them, and celebrate small wins!

Practice questions

1. What is £2.30 + £1.45?
2. How much is 50p + £3.60?
3. Add £4.99 + 25p.
4. Find the total of £10.00 + £5.25.
5. If you have £7.50 and spend £3.75, how much do you have left?

Answers:

1. £3.75
2. £4.10
3. £5.24
4. £15.25
5. £3.75

FAQ

Why do we need to line up the decimal points when adding money?

Because it helps us add pounds with pounds and pence with pence. It’s like making sure we are adding the same units together.

What if the pence total is more than 99p?

If the pence add up to more than 99p, you need to carry over one pound to the pounds column. For example, 60p + 70p = 130p = £1.30.

Can I add money without writing it down?

Yes, you can! But it’s easier to write it down first, especially when you’re learning. Once you get better, you can try adding in your head.

How does adding money help in real life?

Adding money helps you know how much you have, how much you need, and if you have enough to buy something. It’s useful when shopping, saving, or even playing games that involve money.

What if I don’t have a calculator or pen and paper?

You can still add money by counting on your fingers or using real coins. For example, if you have £2.50 and get £1.25, you can count up from £2.50 to £3.75.