X Tables
decimals

Decimal money examples

Use prices to make decimal notation meaningful.

Quick answer

Decimals in money help us show parts of a pound, like 50p or 25p. You can think of 100p as one whole pound, so 50p is half of that, and 25p is a quarter.

Learning outcome

By the end of this page, you will understand how decimal notation works with money and be able to read prices like £1.25 as one pound and twenty-five pence. Success signs:
  • You can say the price £2.50 out loud as "two pounds and fifty pence"
  • You can match a decimal price to the correct coins
  • You can compare prices using the decimal point
  • You can add up small decimal money amounts

Why this matters

When you go shopping, you will see prices like £3.99 or £1.45. Understanding decimals helps you know how much money you need, how much change you should get, and if you have enough to buy something. It's also useful for saving money, sharing pocket money, or planning a party budget.

How it works

Money is split into pounds and pence. There are 100 pence in one pound. So:
  • 100p = £1.00
  • 50p = £0.50
  • 25p = £0.25
  • 10p = £0.10
  • 5p = £0.05
The decimal point separates the pounds from the pence. For example, £2.75 means 2 pounds and 75 pence.

Examples you can see

Let’s look at some prices and what they mean:
Price What it means How to say it
£1.25 1 pound and 25 pence One pound and twenty-five pence
£0.80 80 pence Eighty pence
£3.00 3 pounds Three pounds
£0.10 10 pence Ten pence
Imagine you have a toy that costs £2.30. This means:
  • You need 2 full pound coins
  • You also need 30 pence, which could be 3 coins of 10p each

Try it as a mini adventure

Adventure: The Shopping Trip You are going to the shop with £5.00 to buy some treats. Here’s your shopping list:
  • A chocolate bar for £1.25
  • A bag of crisps for £0.75
  • A bottle of juice for £1.50
  • A lollipop for £0.20
Your challenge is to work out how much you spend and how much money you have left.
  1. First, add up the prices: £1.25 + £0.75 = ?
  2. Then, add the next item: ? + £1.50 = ?
  3. Then, add the last item: ? + £0.20 = ?
  4. Finally, subtract the total from £5.00 to find your change.

Common mistakes

  • Mistake: Thinking £0.90 is more than £1.00
    Why it happens: Confusing the decimal point as a separator instead of a way to show parts.
    Fix: Remember that 0.90 is 90 pence, which is less than 100 pence (1 pound).
  • Mistake: Adding decimals like 0.50 + 0.30 = 0.800
    Why it happens: Adding zeros at the end without thinking about the value.
    Fix: Keep it simple: 0.50 + 0.30 = 0.80 (eighty pence).
  • Mistake: Mixing up the order of pounds and pence in a price.
    Why it happens: Not understanding that the decimal point separates pounds from pence.
    Fix: Always read the number before the decimal point as pounds and after as pence.

Parent and carer guide

You can help your child by:
  • Using real money to show how £1.00 is 100p
  • Playing a game where you say a price and they find the coins
  • Practising reading prices out loud together
  • Letting them help with small shopping trips and counting change
  • Using online games or apps that focus on decimal money
What to watch for:
  • Confusion about the decimal point position
  • Thinking that 0.90p is more than 1.00p
  • Difficulty adding prices that involve exchanging pence for pounds
How to help without pressure:
  • Make it fun with a pretend shop at home
  • Ask them to count out the correct amount for a toy they want
  • Use the same prices in different contexts to build confidence

Practice questions

  1. What is 0.75 written as pounds and pence?
  2. How much is £2.00 + £0.50?
  3. Which is more: £0.85 or £0.90?
  4. Write 65 pence as a decimal.
  5. How much is £1.25 + £0.75?
Answers:
  1. Seventy-five pence
  2. £2.50
  3. £0.90 is more
  4. £0.65
  5. £2.00

FAQ

What does the decimal point mean in money?

The decimal point shows where pounds end and pence begin. For example, in £3.45, the 3 is pounds and 45 is pence.

Can I use decimals with money in other countries?

Yes! Many countries use decimals in their money systems. For example, Euros use cents, and dollars use cents too.

Why do we use 100 pence in a pound?

This system makes it easy to count and add money. It’s like having 100 pieces of a whole, so 50 pieces is half, and 25 pieces is a quarter.

How do I know if I have enough money?

Add up the prices of items you want, and then check if your money is more than or equal to that total.

Can I have more than £1.00 in pence?

Yes! For example, 150 pence is £1.50. But 100 pence is exactly £1.00.